If they payout a dividend larger than what they earn them they won't have enough franking credits so it will only be partly franked. I'd much rather not receive a dividend and I'm sure there's be enough who agree to prevent it occurring. They also wouldn't be paying down debt which would defy the purpose of a drp existing. I'm
Not saying they can't payout more than 100% of income. Just that it is dumb, couldn't last.
If they payout more than 100% of profit then the differemce comes from people in the DRP effectively buying shares from you so it isn't really "extra dividend" it's dividend plus share sale cheques
DDR Price at posting:
$1.55 Sentiment: None Disclosure: Held
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