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30-04-2019, 09:37 AM
#3641
Originally Posted by GR8DAY
Direct Broking have OCA returning a dividend of around 4.5% pa.........anyone like to confirm if this is correct current and sustainable? (asks he who just became a shareholder)
Gross return it is correct. After tax is a bit over 3%.
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30-04-2019, 09:41 AM
#3642
....cheers 777. So you're saying 3% in our hand , less personal tax or 3% no more tax to pay? ( apologies for the ignorance but I rarely invest for dividends........time to change that approach I think)
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30-04-2019, 09:56 AM
#3643
Originally Posted by GR8DAY
....cheers 777. So you're saying 3% in our hand , less personal tax or 3% no more tax to pay? ( apologies for the ignorance but I rarely invest for dividends........time to change that approach I think)
Shareprice = $1.05. Gross (before tax) dividend paid = $0.047 a share. So you get a gross divi yield of 4.48%
Now take off your tax (say 33%) and you are left with a net return of 3%
Which is a whole lote better than money sitting in a bank account.
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30-04-2019, 09:59 AM
#3644
Each share paid 3.15c into bank account after having tax deducted from 4.7c.
Dividend statements will give you the information when you get them. If you are a 33c/$ tax payer then all will be correctly done. If less then when you file a return you will get a tax refund.
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30-04-2019, 10:05 AM
#3645
Originally Posted by minimoke
Shareprice = $1.05. Gross (before tax) dividend paid = $0.047 a share. So you get a gross divi yield of 4.48%
Now take off your tax (say 33%) and you are left with a net return of 3%
Which is a whole lote better than money sitting in a bank account.
And if all goes to plan, increasing dividends in the years ahead
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30-04-2019, 10:12 AM
#3646
Originally Posted by 777
Each share paid 3.15c into bank account after having tax deducted from 4.7c.
Dividend statements will give you the information when you get them. If you are a 33c/$ tax payer then all will be correctly done. If less then when you file a return you will get a tax refund.
Is 33% always the tax rate then you claim it back if your tax rate is lower or can you nominate your actual tax rate if it's lower
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30-04-2019, 10:17 AM
#3647
Originally Posted by ziggy415
Is 33% always the tax rate then you claim it back if your tax rate is lower or can you nominate your actual tax rate if it's lower
All dividends paid are net of any imputation credit and RWT. The two add up to 33c.
If it is a PIE then there can be imputation credits or excluded amounts. Max deduction is 28c. However this is a final tax and does not need to be included in a tax return.
But if your tax rate is 10.5c or 17.5c then it pays to include these to get some of the imputation credit refunded.
No, you don't get a chance to nominate the rate for deduction for payouts from listed shares/units.
Last edited by 777; 30-04-2019 at 10:18 AM.
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30-04-2019, 10:25 AM
#3648
Originally Posted by 777
All dividends paid are net of any imputation credit and RWT. The two add up to 33c.
If it is a PIE then there can be imputation credits or excluded amounts. Max deduction is 28c. However this is a final tax and does not need to be included in a tax return.
But if your tax rate is 10.5c or 17.5c then it pays to include these to get some of the imputation credit refunded.
No, you don't get a chance to nominate the rate for deduction for payouts from listed shares/units.
Thanks 777....
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30-04-2019, 10:25 AM
#3649
Originally Posted by 777
All dividends paid are net of any imputation credit and RWT. The two add up to 33c.
If it is a PIE then there can be imputation credits or excluded amounts. Max deduction is 28c. However this is a final tax and does not need to be included in a tax return.
But if your tax rate is 10.5c or 17.5c then it pays to include these to get some of the imputation credit refunded.
No, you don't get a chance to nominate the rate for deduction for payouts from listed shares/units.
A great summary 777, certainly clearer than a lot of company literature!
And of course if you are invested in an unlisted PIE fund, you can elect your PIR %. And this should be checked each year (Due to retirement I'm in the process of changing mine with a few investments).
Some companies contact you each year to remind you to check your rate is correct. Some don't.
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30-04-2019, 10:28 AM
#3650
All good thanks..........agree better than money in the bank but not up there with HLG and AIR etc?
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