Tax Adj?

[shogun]

All,

I cut and pasted this from E-Trade. It is some info for ANZ.

Income Company Market Sector
Dividend 5.9% 5.2% 5.9%
Franking 100.0%
Tax adj 4.6% 3.8% 4.6%
Stability 100.0% 94.2% 99.8%

I understand Dividend and Franking. But what does Tax adj and Stability mean? Can anybody tell me?

 

[reece55]

Re: Tax Adj ?

All,

I cut and pasted this from E-Trade. It is some info for ANZ.

Income Company Market Sector
Dividend 5.9% 5.2% 5.9%
Franking 100.0%
Tax adj 4.6% 3.8% 4.6%
Stability 100.0% 94.2% 99.8%

I understand Dividend and Franking. But what does Tax adj and Stability mean? Can anybody tell me?

Tax Adj Dividend = Calculated by including the effect of imputation credits from franked dividends or, in the case of property trust dividends, by including the effect of tax-free and tax-deferred dividends. For the purposes of the calculation, it is assumed the shareholder is on the top marginal tax rate of 48.5 percent. Shareholders on a lower tax rate will have a higher after-tax dividend yield.

Stability - This calculation is designed to assess the probability of a future cut in dividends based on the companys 10-year track record. It is based on two factors: (1) The number of times in the last 10 years (or less, if data is not available), in which the annual dividend has been cut. This percentage is then multiplied by the average percentage size of the cut. The higher the percentage, the more stable the dividend. A dividend stability of 100 percent indicates no dividend cuts have been recorded.

All pinched from Comsec's info, which is Aspect Huntley data, which all most data providers use.

Cheers

 

[shogun]

Re: Tax Adj ?

Tax Adj Dividend = Calculated by including the effect of imputation credits from franked dividends or, in the case of property trust dividends, by including the effect of tax-free and tax-deferred dividends. For the purposes of the calculation, it is assumed the shareholder is on the top marginal tax rate of 48.5 percent. Shareholders on a lower tax rate will have a higher after-tax dividend yield.

Thanks a lot. I thought it would have something to do with franking but couldn't work it out because the tax adjusted div yield was LESS and franking should ADD value. But assuming the top maginal tax rate of 48.5 percent is the key - it makes sense now.