What is this additional info about dividends? Help, please? - Aussie Stock Forums

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  1. #1

    Question What is this additional info about dividends? Help, please?

    When distribute dividends some companies say it it is 100% franked but then add some extra info as in these examples:

    14c 100% franked
    14 c FRANKED @ 30% D.R.P. SUSPENDED

    2c 100% franked
    2c FRANKED @ 30% D.R.P.

    4.5c 100% franked

    I guess “D.R.P.” refers to dividend reinvestment plan but that’s all I understand here...

    Could some knowledgeable investor,please, tell me what these “30% D.R.P. SUSPENDED”, “FRANKED @ 30% D.R.P.” and “FRANKED @ 30% D.R.P NIL DISCOUNT” mean in plain English?
    What is behind them, especially if the investor has nothing to do with div. reinvest. plan?

    Thanks in advance all who can help me understand this!

  2. #2
    skc's Avatar
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    Aug 2008
    The dark side
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    Default Re: What is this additional info about dividends? Help, please?

    The DRP note simply tells you whether the DRP is active for the particular dividend.

    So in TLS's case, they will not be doing a DRP for that dividend (even though they migh have a DRP in place, or you have elected to participate in the past).

    ALR has DRP as per usual.

    SXL has a DRP with no discount. Some times DRP shares are issued at a discount by the company as additional incentive to buy more shares.

    Remember with DRP, the company is asking for money from you by issuing new shares. So if the company has no immediate need for additional cash, they'd suspend the DRP.

    "30%" refers to FRANKED. That's the corporate tax rate.

  3. #3

    Smile Re: What is this additional info about dividends? THANKS SKC!!!

    Thanks a lot skc for this meaningful reply! Much appreciated!

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