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.
not quite ... they have franking credits form past corporate...
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Last
$4.68 |
Change
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Mkt cap ! $3.956B | |||
| Open | High | Low | Value | Volume |
| $4.67 | $4.69 | $4.65 | $10.15M | 2.172M |
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| No. | Vol. | Price($) |
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| 4 | 6529 | $4.66 |
Sellers (Offers)
| Price($) | Vol. | No. |
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| $4.68 | 39456 | 5 |
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| Last trade - 16.10pm 17/05/2024 (20 minute delay) ? |
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$4.67 |
Change
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| Open | High | Low | Volume | ||
| $4.67 | $4.69 | $4.66 | 611574 | ||
| Last updated 15.59pm 17/05/2024 ? | |||||
| NHC (ASX) Chart |