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Hi, I think the problem is that the amount of bonus share will...

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boomeronrations

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10/03/19

10:05

Post #: 37711341
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Originally posted by Radicool: ↑

I got the gist of that, that’s why I mentioned the DRP, but company's can still issue BSP without being annotated as franked.

in a DIvidend Reinvestment Plan where the shareholder has a choice of substituting their franked dividend for a share. That isn’t a bonus share but a purchase of a share?

Would there be any benefit or protection of the total value - the grossed up value of a franked div for non tax payers - if a company switched from paying dividends and issued of bonus shares instead?

My question or simply theoretical!

Radicool Views

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Hi,
I think the problem is that the amount of bonus share will no more than be the cash component of the divi, so you miss out on the franking credit anyway.
cheers
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0 Great analysis

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