Contact Energy - CEN Chart

[Snoopy]

No pay rise this time for those who rely on their dividend income

Actually, for NZ shareholders, you aren't quite right about that

http://nzx-prod-s7fsd7f98s.s3-websit...544/388317.pdf

"The Board approved an interim dividend of 14 cents per share (imputed by up to 12 cents per share for qualifying shareholders) to be paid on 30 March 2023."

Last year the equivalent dividend was 14cps (the same) but only imputed to 20%, not the full 28% if the dividend was fully imputed. So that is an imputation rate of 20/28= 71.4%.

If this years dividend has 12 of the 14c paid imputed that comes to 12/14= 85.7%. That means we shareholders do get a pay rise after tax, albeit a modest one.

SNOOPY

[winner69]

Actually, for NZ shareholders, you aren't quite right about that

http://nzx-prod-s7fsd7f98s.s3-websit...544/388317.pdf

"The Board approved an interim dividend of 14 cents per share (imputed by up to 12 cents per share for qualifying shareholders) to be paid on 30 March 2023."

Last year the equivalent dividend was 14cps (the same) but only imputed to 22%, not the full 28% if the dividend was fully imputed. So that is an imputation rate of 22/28= 78.6%.

If this years dividend has 12 of the 14c paid imputed that comes to 12/14= 85.7%. That means we shareholders do get a pay rise after tax, albeit a modest one.

SNOOPY

Technically correct Snoops but ……

Pay is what you get in the bank …and that’s going to be $1.94 less than less year according to my abacus but then it's an old worn abacus so no doubt you will correct

Things like imputation credits RWT, etc etc all get washed up in your tax return and lost with the other stuff

[777]

$ 0.18666667 is the gross dividend form the distribution notice to NZX

After tax you get 67% of it. Therefore banked is .18666667*.67=.1250666689

So per thousand shares that is $125.06


Last year the gross dividend was .17888889 . 67% of that was .11985555563

So per thousand shares that is $119.86

So increase this payment over last March payment is 4.347%

[see weed]

Contact left me with a little smile on close up 20c from the 11am low. Sometimes it is best to let them ride.

[troyvdh]

Gee aint the sharemarket a funny thing.

[winner69]

$ 0.18666667 is the gross dividend form the distribution notice to NZX

After tax you get 67% of it. Therefore banked is .18666667*.67=.1250666689

So per thousand shares that is $125.06


Last year the gross dividend was .17888889 . 67% of that was .11985555563

So per thousand shares that is $119.86

So increase this payment over last March payment is 4.347%

Using your numbers

Last year RWT is 5% of Gross so .1400 less RWT .0089 you got .1310 in the bank to pay groceries

This you get .1400 less RWT .0093 you will get .1307 in the bank for the groceries …less in my book for groceries costing heaps more

You never see imputation credits and RWT in the bank when divie paid …..even though it help you get a tax refund or reduce the tax bill

No doubt Snoopy will correct both of us.

[Snow Leopard]

Using your numbers

Last year RWT is 5% of Gross so .1400 less RWT .0089 you got .1310 in the bank to pay groceries

This you get .1400 less RWT .0093 you will get .1307 in the bank for the groceries …less in my book for groceries costing heaps more

You never see imputation credits and RWT in the bank when divie paid …..even though it help you get a tax refund or reduce the tax bill

No doubt Snoopy will correct both of us.

777 is correct.

RWT on dividends is actually 33% of the gross [ see here ] made up of:
1/ Imputation
2/ another amount to bring it 33% total.

[Snoopy]

Using your numbers

Last year RWT is 5% of Gross so .1400 less RWT .0089 you got .1310 in the bank to pay groceries

This you get .1400 less RWT .0093 you will get .1307 in the bank for the groceries …less in my book for groceries costing heaps more

You never see imputation credits and RWT in the bank when divie paid …..even though it help you get a tax refund or reduce the tax bill

No doubt Snoopy will correct both of us.

Winner, with the dividend declared you get is 14cps net (not gross).

The imputation credit must be added to that to get the gross figure. The higher the amount pf imputation the higher that gross income figure is for a fixed value 'net' dividend. If the dividend was 100% imputed (that means to the company tax rate of 28%) , then the gross dividend would be

14c / (1-0.28) = 19.44ec (fully imputed gross dividend), the imputed credit being: 19.444c - 14c = 5.444c

However, we know that the interim dividend was not fully imputed. It was imputed to 85.7% (FY2023) and 71.4% (FY2022). So the imputation credit for FY2023 is 0.857x5.444c = 4.666c, and the equivalent figure for FY2022 was 0.714x5.444c = 3.888c

This allows us to work out the gross interim dividend for the years under consideration as follows:

FY2022: 14c + 3.888c = 17.888c
FY2023: 14c + 4.666c = 18.666c

Now the company tax rate is 28%, but the individual tax rate reduction must add up to 33%. The difference between the company tax rate and the individual tax rate is adjusted by the taking away of resident withholding tax.

	Gross Dividend	less Company Tax	less Resident Withholding Tax	equals Payment into Shareholder Bank Account
FY2022	17.888c	5.009c	0.894c	11.985c
FY2023	18.666c	5.226c	0.935c	12.506c

So you are right Winner pointing out that RWT will be higher in FY2023 than in FY2022. But that doesn't mean a shareholder will end up with less money in their bank account in FY2023. Because the higher deduction was taken off a higher base figure. Shareholders are better off in FY2023 by:

12.506c/11.985c = 1.0434 or 4.34%

SNOOPY

[Snow Leopard]

...However, we know that the interim dividend was not fully imputed. It was imputed to 85.7% (FY2023) and 78.6% 71.4%(FY2022).
So the imputation credit for FY2023 is 0.857x5.444c = 4.666c, and the equivalent figure for FY2022 was 0.786x5.444c = 4.279c 3.8889c -- see NZX

This allows us to work out the gross interim dividend for the years under consideration as follows:

FY2022: 14c + 4.279c = 18.279c 17.8889c
FY2023: 14c + 4.666c = 18.666c

Now the company tax rate is 28%, but the individual tax rate reduction must add up to 33%. The difference between the company tax rate and the individual tax rate is adjusted by the taking away of resident withholding tax.

	Gross Dividend	less Company Tax	less Resident Withholding Tax	equals Payment into Shareholder Bank Account
FY2022	18.279c	5.118c	0.914c	12.247c
FY2023	18.666c	5.226c	0.935c	12.506c

Paid was 11.9856c (2022) will be paid is 12.5067c (2023).

[winner69]

Snoopy ….isn’t what’s paid into one’s bank account to pay for the groceries the Declared Dividend (14 cents) less RWT (calculated on Gross Dividend). Difficult to buy groceries with imputation credits …..countdown and others don’t accept them.

So on March 20th or whenever my abacus still says you are getting less in the bank this year because of the higher RWT deducted.

Pity there’s a difference between theoretical money and actual cash in the bank on pay day (dividend date)

My apologies for bring up the subject of no pay rise …..and now finding it’s a pay cut ….and the groceries are costing heaps more