The Switzer team explain dividend franking and how franking credits can improve your returns. www.nabtrade.com.au/insights #Switzer #Investing #nabtrade
If you own shares then you own part of a company. Company pays out a dividend. If its franked the company will handle the tax by applying 30 % and then the share holder will either get a refund or tax bill based on their nominal tax rate. If its not franked then the share holder will apply nominal tax rate... and in the end the final value of cash in the share holders pocket is the exact bloody same post tax. It ultimately does not mean anything if the dividend is franked or non franked. The final split to the shareholder will be the same. The tax man does not lose
@glennrao7420
Жыл бұрын
An excellent system and very well explained by Paul! This is a very compelling reason to earn more income from Dividends, rather than Active income (although, you need active initially to produce passive income)
Пікірлер: 3