" So how is this credit applied then? Last I checked it was paid in cash"
Well check again as it most certainly is not. You get the Cash paid into your account up front and you get a Franking Credit that you may claim upon your end of year tax return.
"Countries do indeed double tax this income like the US. BUT this is also why companies will either retain and re-invest profit or buy back shares instead of paying it out to investors in the US."
I suspect these shareholders gain same in Capital Gains rather than dividends
I simply cannot understand the rational of being repaid tax payable by company profits when you pay no personal tax at all. It means effectively, on your share, the company has not paid any tax.
TLS Price at posting:
$3.28 Sentiment: Hold Disclosure: Held
(20min delay)
