If they have $70M to return and do so via franked dividends then the shareholder also gets a $30M credit for corporate tax paid, ie $100M in total. The shareprice should decrease by $70M/market cap so there is also a capital loss.
For a share buyback the $70M buyback should increase the shareprice by $70M/market cap, ie bugger all. That capital gain on that small increase is halved if you have held for >12 months but the benefit i still close to bugger all.
If franking credits are available then the dividend is always best for an Australian tax payer. If no franking credits then a share buyback is OK.
So much under valued, page-206
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Last
$2.50 |
Change
0.030(1.21%) |
Mkt cap ! $3.439B | |||
| Open | High | Low | Value | Volume |
| $2.53 | $2.57 | $2.49 | $9.943M | 3.949M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 14473 | $2.49 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.50 | 16900 | 1 |
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| Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
| PRU (ASX) Chart |