The A2 Milk Company Ltd (ASX: A2M) share price is in focus today after declaring a large special dividend.
A2 Milk is one of the world’s leading infant formula companies, particularly in China and ANZ. It also sells liquid milk in Australia and the USA.
A2 Milk special dividend
The company’s dividend announcement comes after it received approval from the State Administration for Market Regulation (SAMR) to transition the two Chinese label infant milk formula product registrations (acquired that came with the a2 Pokeno facility) to a2-branded products.
A2 Milk said that the board of directors has declared a NZ$300 million special dividend that will be fully franked and unimputed.
On a per-share basis, this dividend will be a NZ$0.4136 payment for each share.
In Australian dollar terms, it currently translates to approximately A$245.54 million in total, and $0.3385 per share. At the pre-open A2 Milk share price, that translates into a dividend yield of 4.9% before franking credits and 7% including the franking credits.
The ex-dividend date for this payment is 8 July 2026 – that’s only a couple of weeks away. Investors need to own A2 Milk shares before this date to be entitled to the dividend.
The payment date for this upcoming dividend is 24 July 2026, so shareholders have less than a month to wait until their share of NZ$300 million heads to their bank account.
Management comments
The Chair of A2 Milk, Pip Greenwood, said:
With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.
Final thoughts on the A2 Milk share price
The A2 Milk share price is down more than 30% since March 2026, so it’s a lot better value, though it has jumped 32% since early June 2026.
In my view, A2 Milk has a great product, but it’s operating in challenging conditions with a long-term difficult trend of lower birth numbers in China.
It may be undervalued today, but I try to avoid businesses where their sector faces headwinds because it makes it difficult to grow market share and margins at the same time.
In my view, there are other ASX growth shares that could be better buys, but I’d be very happy if I were a shareholder.
