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



## SarinaGM (16 April 2013)

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

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

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

SXL 
4.5c 100% franked
*4.5c FRANKED @ 30% D.R.P NIL DISCOUNT*

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!


----------



## skc (16 April 2013)

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.


----------



## SarinaGM (17 April 2013)

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

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


----------

