Dividends and franking

[winner69]

You should have got a dividend statement showing the gross amount and the imputation credits applied. Generally gross less imp credit is the declared dividend

Both are declared in your annual tax return

[samdaman]

cool cheers winner, always appreciate your additions

[barleeni]

Newbie myself, so was just looking at this today, took me a while to figure it out! Basically (assuming an NZ company, and an NZ shareholder) if company dividend is $100, and it is 100% imputed then what they will actually pay out gross is $100 x (1/0.72) = $138.89 gross dividend, or in other words they would attach $38.89 in imputation credits. The 0.72 figure comes about because the company tax rate is 28% (100% - 28% = 72%) Then, if your personal tax rate is 33% it will be deducted from the total of the dividend plus credits, so your net dividend would be calculated as $138.89 x 67% = $93.06.

If the same $100 dividend was only 50% imputed, the first $50 of your dividend would have no imputation credits and would be taxed at your full personal tax rate, so if that was 33%, then of the first $50 you would only get $33.50 net. The last $50 of the dividend which was imputed would gain $19.44 of imputation credits (which is $50 x 1/0.72), this would bring the total up to $69.44 inclusive of credits. That value ($69.44) would have your tax deducted at 33% leaving $46.52 for you.

So in total a $100 dividend with 50% imputation would give you a net dividend of $33.50 + $46.52 = $80.02.

Complicated enough!

[arc]

Does anyone here invest "for" dividends in the US market. Im new to this scene so I'm collecting "thoughtful insights". I have been browsing googles financial site and used the stock-scanner to filter US dividend paying companies.
Does anyone here have experience with div payouts from over-there, positive/negative issues?. comments?.


"Company---------------------symbol-----Mkt-cap-----P/E ratio----Div Yield%---52w price change% "
---------------------------------------------------------------------------------
"Origen Financial, Inc. ---------------- ORGN---$ 38.37M --- - ------29.14 -------4.86"
"Pinpoint Recovery Solutions Corp--- PPNT----$ 461,759.00 - ------20.00-------- 33.33'
"Orchid Island Capital Inc-------------ORC-----$ 118.65M---34.64---16.49--------10.64"
"Central Securities Corp--------------CET------$ 565.01M---3.99-----15.82-------13.34"
"Magyar Telekom Tavkozlesi Nyrt---MYTAY---$ 1.58B------13.35----14.74-------8.44"
"New York Mortgage Trust Inc------NYMT-----$ 721.18M-----7.96-----13.30------19.41"
"Javelin Mortgage Investment Corp-JMI------- $ 161.95M---------------13.27----- 1.42"