If they have $70M to return and do so via franked dividends then the shareholder also gets a $30M credit for corporate tax paid, ie $100M in total. The shareprice should decrease by $70M/market cap so there is also a capital loss.
For a share buyback the $70M buyback should increase the shareprice by $70M/market cap, ie bugger all. That capital gain on that small increase is halved if you have held for >12 months but the benefit i still close to bugger all.
If franking credits are available then the dividend is always best for an Australian tax payer. If no franking credits then a share buyback is OK.
So much under valued, page-206
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Last
$2.84 |
Change
-0.010(0.35%) |
Mkt cap ! $3.908B | |||
| Open | High | Low | Value | Volume |
| $2.87 | $2.89 | $2.81 | $12.62M | 4.431M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 11148 | $2.83 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.84 | 12887 | 1 |
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| Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
| PRU (ASX) Chart |