TEL v TLS

[Gryffyn]

Why not indeed. Good to see a long-term story Lawso. As you say, with the divvies etc and the averaging back up, TEL has come right for you.

the TEL vs TLS is if you ony wanted to be represented by one share in that market sector.

[zacman]

I would have thought that the dividend imputation credits provide a large advantage to TEL.

I would not invest in both at the same time. I am a firm believer that the less shares the better i.e.the less companies the better. I choose my preference and back it...I do not want my gains averaged down by choosing both a good and a not so good company

z'man

[Lawso]

Fair enough, zac, provided you can pick correctly. Too bad if you punted heavily on one and then saw the other one take off. I prefer a bob each way.
Incidentally TLS divs are fully franked at the company tax rate of 30% so I don't see that NZshareholders are disadvantaged.

[zacman]

I have never owned Aussi shares so am unclear re tax issues. I assumed that a NZ taxpayer recieved a credit for tax paid in Aussi. What happens if Aussi divis are fully franked. Excuse my ignorance.

z'man

[limegreen]

There is a scheme in place whereby if an Australian company pays NZ tax (presumably on their operations here), they can distibute imputation credits

http://www.ird.govt.nz/othertaxes/tr...reholders.html

[Gryffyn]

Good link. Pretty clearly explained.

Now has anyone received a TLS divvy recently and can they tell us what the statement included.

[Lawso]

I thought I had just done this, Your Guruness.
The '04 final div, paid 29.10.04, was A13cps 100% franked at the company tax rate of 30%.
Therefore, for say 7000 shares the unfranked amount is zero, the franked amount is A$910,
the dividend amount is $910 and the franking credit is $390.
The AUD payment of $910 converted to NZD972.88 @ AUD1 = NZD1.0691.
Anything else you want to know?

[Gryffyn]

No, that will do for now :-) Wasn't after the numbers per se but the tax implications - I guess the important detail there was that you got unclaimable franking credits and not NZ imp credits. Thanks Lawso.

[Gryffyn]

1/02/2005

Shr Open Clse Divds Diff. Cumulative
------------------------------------
TEL 6.16 6.12 00.00 -0.04 -0.06
TLS 5.40 5.42 00.00 +0.02 +0.07

[$imon]

If customer service is anything to go by, then I would and am in TEL. TLS is by far the worst company I have ever had the misfortune to deal with from the customer side. Admittedly TEL is also shocking, but not quite as shocking. Lots more competition in oz also, heaps of alternative suppliers, for mobile & broadband, the 2 big growth area's anyway. Even some co's offering VoIP accounts now!

These big boys have been luckily protected with their monopolies for a long long time. Pity it will all come to an end within the next decade or so as copper age becomes part of history along with the stone age, ice age etc...

$imon