3 ASX small caps declared special dividends this week

This week, three small-cap companies — Resimac, Pepper Money, and Tasmea — announced unexpected special dividends, showcasing strong balance sheets, confidence in future earnings, and strategic capital management.

Resimac Bolsters Shareholder Returns

Non-bank lender Resimac (ASX: RMC) declared a fully franked special dividend of 12 cents per share, yielding approximately 12% based on a $1.00 share price. The dividend follows a strategic review that identified surplus capital from the sale of non-core financial assets, which made up less than 5% of the company’s 1H25 net assets. These assets were deemed non-essential to Resimac’s strategic objectives.

Prior to the special dividend announcement, Resimac shares were down 13% year-to-date, largely driven by a weaker-than-expected first-half FY25 result. During the period, net profit fell 12.2% to $15 million, reflecting a "significant increase in collective provisioning, particularly within the asset finance business."

Pepper Money Rewards Investors

Pepper Money (ASX: PPM) another non-bank lender, announced a fully franked special dividend of 12.5 cents per share, yielding around 7%. The company attributed the payout to its strong unrestricted cash position and ongoing capital management strategy.

Pepper Money’s shares were already up 16% year-to-date before the announcement, buoyed by a solid FY24 result on February 27, which exceeded market expectations with strong loan growth and disciplined cost management. The company also declared a dividend at the top of its payout range and maintained an ongoing share buyback. Following the special dividend news, shares opened 4.5% higher, rallied up to 10.2% intraday, and closed 6.9% higher at $1.77, with a further 5% gain the next session.

Tasmea Signals Confidence

Tasmea (ASX: TEA) declared a fully franked special dividend of 12 cents per share, yielding approximately 4%. The company cited its strong cash flows, significant undrawn debt capacity, compelling growth pipeline, and confidence in an FY26 outlook that exceeds its long-term incentive plans.

Since its listing in April 2024, Tasmea has demonstrated robust earnings growth. Its FY24 results surpassed key prospectus targets by 1-10%, with a fully franked dividend of 4 cents per share. This momentum carried into the 1H25 results, announced on February 24, 2025.

• Revenue up 27.6% to $246.6 million

• NPAT up 76.6% to $27.9 million

• Statutory earnings per share up 53.5% to 15.2 cents

• Interim fully franked dividend up 100% to 5 cents per share

• Upgraded FY25 NPAT guidance to $52 million (from $48m)

• "The outlook for key commodities across iron ore, copper, and gold remains sound with large iron ore miners looking to maintain or increase volumes."

Market Embraces Dividend Announcements

All three companies saw significant share price gains on their announcement days, with sustained buying over the following sessions.

• Resimac opened 10.5% higher at 94 cents and closed the session up 13.5%. The stock also gained another 5.2% over the following two sessions.

• Pepper Money opened 4.5% higher, rallied as much as 10.2%, and closed the session up 6.9% at $1.77. The stock rallied another 5.0% the next session.

• Tasmea opened 3.5% higher and closed the session up 8.6% at $3.15, a fresh three-month high. The stock has eased around 1.5% in the last two sessions.

Where To From Here?

Special dividends signal strong balance sheets, disciplined capital management, and confidence in future cash flows. Resimac’s payout highlights a streamlined focus on core operations, despite challenges in its asset finance segment. Pepper Money’s dividend reflects its ability to sustain loan growth while rewarding shareholders. Tasmea’s payout, backed by upgraded FY25 guidance and strong commodity exposure, positions it as a high-growth contender in the industrial sector. These dividends are a clear vote of confidence from management, suggesting sustained momentum for each company. I’ll follow up with another write-up in the coming months to check on how these companies are performing and whether this momentum holds.