I like this company - but this is terrible......taking my after...

I like this company - but this is terrible......taking my after tax capital and turning it into pre-tax income.

ALL unfranked dividends are stupid in Australia, a buy back is a vastly superior shareholder measure unless there is 100% franking available.

Directors please take note.

At the extreme - Lets say you invest 30 cents of after tax capital - and then you get paid 30 cents of unfranked dividends.
At 47c tax rate there is an tax cashflow to the government of (say) 14 cents.

Turns my 30c into 16c

With a buyback - lets say you buy 99.9% of the company back - at worst my share is still worth 30c (and at the extreme I own 100% of the company (and 100% of the EPS/Profits.

The calculations are different with franking credits.