if you declare a 1c fully franked dividend then the company still pays out 1c - except the SH does not have to pay additional tax as long as he is in the 30% tax bracket
if you declare a 0.7c dividend same applies (if you calculate company tax for fully franked dividend then the 0.7 c fully franked dividend would equate a 1c unfranked dividend)
you still spend cash either way - one is better for shareholders than the other; but as you say depends on tax credits accumulated by the company
FML Price at posting:
6.5¢ Sentiment: None Disclosure: Held
