Great essay Buddy but you didn't answer the question. Who paid more for their stock than 76.5c or 26.5c post div capital return?
The return was 28 div, 12c franking credits, 10c capital return. So a total return of 50c. I know for a fact no one paid more than 76.5c pre-return. No one paid more than 26.5c post return. So tell me who isn't ahead?
On the tax side it is inevitable that we will pay tax when we invest (and actually make money) so for holders that didn't want a dividend they had the opportunity to sell the stock pre-div and utilise the capital gain (and discount if appropriate) and those that were happy to take the div, franking capital return also had their choice. Anyone that is now carrying a capital loss on the balance (post div) will be able to utilise this against gains on the next trade. This is all pretty basic stuff.
So was this guy "totally wrong"?
EXS Price at posting:
26.0¢ Sentiment: None Disclosure: Not Held
