Sharechat Logo

What is 'franking'?

Wednesday 23rd January 2002

Text too small?
Q: I have seen the term "franking" used with dividends. Is this the same as imputation credit? Why is a percentage given between 0 and 100?

A: Franking is the Australian version of New Zealand's imputation credits. The percentage value mentioned with the franking credits refers to the percentage of the dividend that has had the tax paid on it. Not all dividends are fully franked so, depending on the circumstances of the individual investor, you may be required to pay more tax on any dividends received.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

What is treasury stock?
Can you explain the term "split factor adjustment"?
What are imputation credits?
When is a company listed as CD (cum-dividend)?
Can I buy shares in my daughters' names?
What is an IPO?
What do bid/offer and buy/sell mean?
What does 'Div cps' stand for?
When do shares go ex-dividend?
What is a 'dividend yield'?

IRG See IRG research reports