I was using 2.2 ex div price because, well, that was the current price. The price dropped because of the dividend payout.... we are including that payout in the investment returns, that seems very fair and accurate to me in terms of analyzing the share performance?
Seems we are good on the $1200 capital loss part.... the shares aren't worth $1000 anymore.
Current value of shares @ 2.2 then is $8800 Gross dividends over last 4 years $3514.3
Total return : 8800 + 3514.3 = 11114.3
For the 4 year period growth rate (future_value/present_value^(1/number_of_years))-1 = cagr
( 11114.3 / 10000 ^ ( 1 / 4 ) ) -1 = 0.0267
Very few people will qualify for 0% income tax though..... but I put it in there because that is you absolute best case scenario for return on this share over that period.
Income vs marginal/effective tax rates assuming super @ 9.5% including medicare levy's, rebates, offsets. Gross dividend are included in your taxable income, same as net capital gains.....
Income
Marginal Rate
Effective rate
Franked Div @ 30%
Gross Div
Tax implications
1
$60000
32.5%
16.6%
70
100
$13.04 Refund
2
$120000
37%
26.4%
70
100
$3.59 Refund
3
$180000
45%
30.7%
70
100
$0.70 Tax owed!
WAM Price at posting:
$2.21 Sentiment: None Disclosure: Not Held
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