Keep in mind that for corporate shareholders a dividend is effectively tax neutral because the franking tax offset is usually the same as the liability from the dividend. The corporate can use franking offsets to reduce its income tax liability to zero but cannot receive a refund the way that personal tax payers currently do. Accordingly, the tax treatment for Elph (60% owner) will not change. For this reason I think it is unlikely that we will see an increased dividend based on franking credits alone.
Since resuming payment of dividends EGN has been quite conservative in its payout ratio (<20% in 2017 and 2018). Additionally, no interim dividends have been paid. There is certainly scope for an increasing the payout given the low debt position, building cash levels, steady capital requirements and lack (to date) of acquisition activity. My preference is that they might secure some growth opportunities but in the absence of such there should absolutely be increased dividends, But unfortunately, on recent form, the answer to that might be as far away as August.
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