Franked Dividends | Emini Futures Alerts Trading Room

Franked Dividends

A dividend paid out of profits on which the company has already paid tax. The dividends have imputation credits attached, meaning the investor is entitled to a reduction in the amount of income tax that must be paid, depending on his or her marginal tax rate. If a company pays the full company tax rate, the dividends are fully franked, otherwise they are known as partly-franked dividends.