you have to go to their website and look up tax. from memory the 'loan account' started at 80c per stapled unit and will wind down as they pay dividends. So long as DBI hasn't paid out cumulatively more than 80c then the dividends will be 'tax deferred'.
However the headache part is that for new purchases they must manually calculate the remaining 'loan' amount from their share purchase price. As this will be required in the future when they sell the shares (ie the purchase price of the shares is reduced by the dividend so long as the dividend is deferred).
Great opportunity for those on high personal tax rates that are planning on holding the shares for more than a year. Not only do I not pay any tax now on the dividend, one day when I sell I can apply capital gains tax discount. Even better since I use margin loan accounts, the interest on the margin loan is tax deductible even though the dividends tax are deferred.
So basically I get the dividend tax free (at this moment in time) I get to offset the interest on the margin loan against other income (at this moment in time).
I worry about CGT at some point in the future (and even then I will apply CGT discount)
Hence my interest in this stock.
DBI Price at posting:
$2.02 Sentiment: None Disclosure: Held
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