not quite ... they have franking credits form past corporate taxes that the company has paid. The company can not choose to pay corporate tax or not (ATO is king kong) ... once paid, the company has franking credits that can be passed onto the investor.
Further, fo the company to issue $1 unfranked - they need $1 of cold hard cash that leaves the balance sheet, but if they pay 70c franked, they can pass on a benefit of $1 to the investor at a cash cost of 70c.
There usually is not any good reason not to use issue franking credits when paying dividends as it benefits the shareholders and the franking amounts can not be used by the company in any other way.
"at the end of the financial year with tax return its all gotta be even."
Disagree. ATO does not treat corporate tax as optional, so it will always be paid. If holding back franking credits and paying grossed up unfranked dividends, it will result in a significant depletion of balance sheet cash for no net benefit to investors.
- Forums
- ASX - By Stock
- NHC
- Ann: Dividend/Distribution - NHC
Ann: Dividend/Distribution - NHC, page-20
-
- There are more pages in this discussion • 73 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add NHC (ASX) to my watchlist
|
|||||
Last
$4.57 |
Change
-0.130(2.77%) |
Mkt cap ! $3.863B |
Open | High | Low | Value | Volume |
$4.70 | $4.72 | $4.57 | $14.07M | 3.054M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 10812 | $4.56 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.58 | 3910 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 10812 | 4.560 |
12 | 54133 | 4.550 |
7 | 28332 | 4.540 |
5 | 37454 | 4.530 |
2 | 5300 | 4.520 |
Price($) | Vol. | No. |
---|---|---|
4.580 | 3910 | 1 |
4.590 | 3400 | 1 |
4.600 | 21145 | 4 |
4.610 | 18809 | 4 |
4.620 | 44201 | 6 |
Last trade - 16.10pm 28/08/2024 (20 minute delay) ? |
Featured News
NHC (ASX) Chart |
The Watchlist
UNT
UNITH LTD
Idan Schmorak, CEO
Idan Schmorak
CEO
Previous Video
Next Video
SPONSORED BY The Market Online