Thanks Omega. Very clear explanation. Cheers
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Another day, another related article.
http://www.nzherald.co.nz/business/n...ectid=10910165
just to add my 28% [tax humour]
Companies can impute dividends up to 28%, representing the tax they have paid. Hence dividing by 0.72 to gross up for this extra benifit.
A company must withhold tax at 33% (less ICs) so the will withhold 5% withholding tax as well - unless you have a withholding tax certificate.
Note IC represent NZ tax paid so a company with NZ operations is expected to fully impute but a company with large profits overseas (FBu, skc, fph) will struggle so may only partially impute.
Edit: worked example
Fully imputed
7.2 Cent dividend
2.8 Fully imputed
10. Cent gross income
-2.8. IC tax credit
-0.5. RWT tax
6.7. Cent cash in hand from dividend
No imputation
7.2. Cent div with no iC
-2.4. RWT tax
4.8. Cent cash in hand from dividend
Cousin greed has always been my favourite, however hopefully irrational uncle Mr Market doesn't lock greed out of the house for bringing too much positive news.
Its getting a bit off topic. But one last thing, when will we see 'Sparkys magic managed fund' then? I assume it will have a good portion of CNU ;)
Maybe everyone except those holding it (CNU) for the gross dividend percentage should be banned from owning CNU (down 5cps this morning).
That way there would be some desirable stability and the game players could concentrate on more logical targets like FBU....
"Chorus will release its full year results, for the twelve months ended 30 June 2013, prior to market opening on Monday 26 August 2013. A briefing will be held at 10am (NZ time) and webcast live via www.chorus.co.nz/webcast."
Does anyone have any thoughts as to what we could be in for? Any particular number ranges that would be deemed as negative/positive?
Looks good to me STC , I think the analyst range was 141/165 mio so above all of those @ 171 mio.Feels to me like some of the negativity is going out of this stock, solid dividends will underpin this as well imo.