Thanks Marcus A.I think, I vaguely remember your original post...

Thanks Marcus A.

I think, I vaguely remember your original post from some time ago. I am not across the ins and outs of the franking credit account and its corporate finance effects. This was all 6 years ago, and I probably should not have brought it up. ARB's sp is more determined by what's happening in the future rather than the past - unless there is a 'pot of gold' somewhere to be paid out.

My understanding is that 100% of the upcoming dividend is taken up, i.e. underwritten by Taylor Collison. I take it, that the full amount of the dividend will be issued in new shares. So far, there is no mentioning of a discount; only the cost have been made public (1% of the total dividends).

What made me writing all these posts was the realization that new shares are issued (ca. 12% of capital issued) without the market being informed as such. I thought that curious and I am still not clear about this. I think there should be more detailed information given to the market to put undue concerns to rest.

There is nothing wrong with a company retaining the dividends.

After all, the famous BRK.A has done so for decades and has done well. The average return over 20 years for my SMSF sits at 8.16% annually after cost today. ... and thus looking at ARB's returns on capital and equity, perhaps my money is better invested with ARB.