HKThere are a few small differences in Divs. A 0% franked...

HK

There are a few small differences in Divs.

A 0% franked dividend, has had no tax witheld, and thus you are responsible for paying tax on the income at the same rate as your income tax bracket.

Franked dividends contribute to your tax. e.g 100% franked at 30%, means that the company has witheld enough tax for you to cover the dividend if u were in a 30% bracket. If your in a higher bracket you must pay the difference.

Tax Deffered. This one is a good one and my personal favourite. It is applicable to some LPT's and it means that all tax from dividends are not paid until you sell the asset. Meaning you can essentially hold the stock forever and not pay tax on the dividends (untill you sell - which can be never).

The status or type of dividend paid can be found on the ASX or other stock webite under dividends. It is found on the far right on ASX next to the dividend reinvestment plan options.

SS