Dividend anyone?, page-13

EZCorp may favour share buybacks, but they should also favour dividends with franking credits, in spite of the fact that they do not benefit from them directly.

We can also surmise that they have approved the reinstatement of franked dividends, from the BODs statement of intentions. Owning such a large share of the company, they would have had some considerable influence over this.

The reason reinstatement of franked dividends will benefit EZCorp is apparent in the statement too. The franking credits are now sizeable and valuable, but only truly valuable if they get used. Reinstatement of sustainable franked dividends will surely push up the SP as a result of the additional demand from ozzy investors. This will in turn make EZCorp's investment in CCV worth more, shoring up their own balance sheet, and providing optionality to cash out some of their investment at more favourable rates.

The franking credits were always worthless to EZCorp in a direct sense, and they were aware of this when they first bought into CCV. So they will not care if the franking credits are being used, but will still benefit from the improved SP