Considering your proposal my thoughts are that to get a “return” (I assume cash in hand) on their investment they would have to sell shares that they received through their dividend reinvestment meaning that they may be subject to capital gains as well as dilution of their holding. In addition, they would incur an additional tax liability if their personal tax rate is higher than the franking percentage.
however, anyone with a self managed super fund in pension phase might benefit though as they would not be diluted and would receive a refund of some or all of the imputation credit
PGC Price at posting:
49.5¢ Sentiment: Hold Disclosure: Held
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