"that only applies for fully franked dividends. A2M is a NZ listed entity and pays tax in NZ. I dont think they have the ability to pay franked dividends which is why buy backs make more sense."
Australia and New Zealand are parties to a bilateral tax treaty. Among other things NZ companies are allowed to maintain franking credit accounts for any taxes paid by their Australian subsidiary to the ATO. Reading from the A2M Annual report 2022, p88
"Imputation and franking credits The Company is a New Zealand company which has elected to maintain an Australian franking credit account. The imputation credit and franking credit balances represent the sum of the imputation credit and franking credit account balances of all Group companies stated on an accrual basis. The ability to use the imputation and franking credits is dependent upon the ability of Group companies to declare dividends"
Therefore I expect when A2M are in a position to declare dividends, they will likely be fully or partially franked for Australian shareholders
I am not a shareholder. Yet. There are reasons.
A2M Price at posting:
$6.82 Sentiment: None Disclosure: Not Held
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