# Is imputation credit included in dividend yield?



## Tyler Durden (5 August 2011)

Remember that Simpsons episode where Homer gets his hand stuck inside a soft drink vending machine, and there are all these firemen trying to get him out? Then one of them comes up to him and says something like "this may be a silly question, but...are you just holding onto the can?"

So I feel a bit like Homer now asking this question, but is imputation credit included when calculating dividend yield? 

When I look at dividend amounts, it appears to only show the amount of dividends you will receive, not any imputation credits you may also get?


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## skc (5 August 2011)

Tyler Durden said:


> Remember that Simpsons episode where Homer gets his hand stuck inside a soft drink vending machine, and there are all these firemen trying to get him out? Then one of them comes up to him and says something like "this may be a silly question, but...are you just holding onto the can?"
> 
> So I feel a bit like Homer now asking this question, but is imputation credit included when calculating dividend yield?
> 
> When I look at dividend amounts, it appears to only show the amount of dividends you will receive, not any imputation credits you may also get?




Correct. Unless you are reading something that specifically says "grossed up" dividend, the usual way of quoting dividend yield is without the franking credits.


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## Tyler Durden (5 August 2011)

skc said:


> Correct. Unless you are reading something that specifically says "grossed up" dividend, the usual way of quoting dividend yield is without the franking credits.




So the actual 'yield' for fully franked dividends are higher than stated?


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## skc (5 August 2011)

Tyler Durden said:


> So the actual 'yield' for fully franked dividends are higher than stated?




Correct.


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## Tyler Durden (5 August 2011)

Thanks


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