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Naylz
20-05-2005, 10:22 AM
We should start a knowledge base here. I'm a total ignoramuz. Can someone please explain about ex-dividend.
Telecom goes ex-dividend on 23 May 2005 according to the asb site. When do you have to hold shares until to be eligible for the dividend.
Thanks in advance.

TerryA
20-05-2005, 10:37 AM
Naylz,

I think that you will find that Telecom goes ex-Dividend on 10 June.

To be eligible for the Dividend you must hold the shares on the Record Date, which in this case is 27 May.

See the Telecom announcements of 6 May - Go to Direct Broking, Sharemarkets, Bring up TEL in Quotes and Charts and go to News. Hope that makes sense to you.

Best wishes,

Snow Leopard
20-05-2005, 12:22 PM
quote:
Dividend
Telecom will pay a fully imputed dividend for the quarter ended 31 March 2005
of 9.5 cents per share on 10 June 2005 in New Zealand and Australia and on 17
June 2005 in the United States. The books closing dates are 27 May 2005 in
New Zealand and Australia and 26 May 2005 for New York.


Upto and including the 27th May Telecom shares are "cum-dividend" i.e. with an entitlement to the dividend. If you are the owner of the share at the close of business on the 27-May-05 you will get 9.5c for each share registered to you. This is the record date. You will receive this money on the 10 June 2005 in New Zealand.
On the next trading day after the record date, in this case, Monday 30 May 2005 the shares are "ex-dividend" i.e. with no entitlement to the dividend. Generally the price of the share will drop by about the amount of the dividend.

Sky Tower
21-05-2005, 06:53 PM
Dividend
Telecom will pay a fully imputed dividend for the quarter ended 31 March 2005 of 9.5 cents per share on 10 June 2005 in New Zealand and Australia and on 17 June 2005 in the United States. The books closing dates are 27 May 2005 in New Zealand and Australia and 26 May 2005 for New York.

To be eligible you need to be a registered shareholder at 5pm on the date of record which is usually a Friday in this instance 27th May. The ex date (the day after) which is usually a Monday, in this instance is 30th May. If you purchase on the ex date you will not be entitled to receive the dividend.

If you use National Bank Online Share Trading and hold your shares in the custodial facility (if you sell, settlement is within a few hours rather than T+3) you will receive the dividend payment direct credited to your National bank account two working days later, in this instance on the 14th June. (The dividend gets paid to First NZ Capital Custodians Limited first).

In Australia the ex date is before the record date.

Naylz
22-05-2005, 06:26 PM
thanks people. guess the asb site has got the dates wrong. they have the 23rd of May as the exdividend date..

22-05-2005, 08:22 PM
NAYLZ are you sure you are not looking at the Australian EX date on the ASB web site. The 23rd of May sounds about correct for this. Australian ex date must be at least three working days before the date of record (or record date), this allows for T plus three settlement.

Naylz
08-06-2005, 08:05 AM
could have.. this is also another dumb question but what is franking?

OldRider
08-06-2005, 09:44 AM
For practical purposes franking is, I think, the extent to which a company has earned its profits in Australia, and paid tax on them there.The franking credits allowed are in relationship to this, like imputation credits here in NZ.

NZ taxpayers are unable to use them, but they are not added to your dividend taxwise. Some companies - Amcor for example, have a mixture of franked & unfranked amounts. For NZ taxpayers Non resident withholding tax is paid at 15% on the unfranked amount, and can be claimed as a deduction on a NZ tax bill. No tax is deducted when a dividend is fully franked so the total dividend is taxable here in NZ.

It is possible for an Australian company who earns some profits in NZ to give imputation credits which can be used by NZ Taxpayers according to the tax the company has paid in NZ.

From memory Baycorp does this, others don't seem to think the effort is worthwhile.

At one stage I read that access to franking credits could be gained by joining the drip, and in this case new shares were bought equal to the value of div plus franking credits. ANZ was, if I recall correctly, supposed to do this. I have never done this and am doubtful about it, simply pass the information on for your interest.