Hi Eagle, a lot of companies, like banks stick to a payout...

Hi Eagle,


a lot of companies, like banks stick to a payout ration be it 50%, 60%, 80% etc of after tax cash profits. Basic maths tells us if the ratio is constant, then the grossed up dividend will be the same amount regardless of the tax rate.

It is what they save above their ratio payout that will give them extra for reinvestment.

Do the math and you will find it to be true, regardless of Super Guide.

Cheers