what to expect, page-12

mikes100,

If you is a self funded retiree, with a self managed super fund in pension mode, you benefit from 100% of franking credits because you pay no tax.

Consequently for every 7 cents of dividend I have been receiving that is fully franked I have received another 3 cents of franking credits after filing my tax return, courtesy of the government.

In other words for any fully franked dividend I have received
I have received another 42.857% rebate of franking credits tax free.

This is one advantage of being a senior.

In years to come you will not get the yield on your money that you will get if you hang onto your investment & do not sell. Even if you paid $1.25 now for a share that hopefully pays 7.0c & 7.0c in 2013 your yield will be 11.2% & grossed up 16.0%.

At the current price of $1.20 your yield would be 11.66% & grossed up 16.66%.

It makes selling for a short term profit look pretty stupid, particularly for those having to pay capital gains tax.