FMG 1.84% $18.10 fortescue ltd

Iron ore price, page-36084

  1. 10,298 Posts.
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    As everyone should be in bed, I'll abuse the forum and have another shot.

    $1 Franked Dividend, 45% Tax Rate
    The investor has $1 in dividend income and 43c in franking credits, the taxable income is $1.43.

    The investor retains 93c of this after tax.

    $1 Un-Franked Dividend, 45% Tax Rate
    The investor has $1 in dividend income and 0c in franking credits, the taxable income is $1.

    The investor retains 65c of this after tax

    The investor is 28c better off due to franking credits despite the tax rate been above 30%.
    Last edited by convexity: 26/08/21
 
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