Dividends and DRP
Retrospective Changes to Tax Legislation for QV Equities Limited (‘Company’)
The amount of franking credits for dividends you received during the 2017-18 financial year has changed.
- New legislation retrospectively changes the Company’s eligibility for the lower company tax rate of 27.5%.
- Franking credits attached to dividends paid during the 2017-18 financial year will be based on a tax rate of 30% instead of 27.5%. This slightly increases the franking credits for dividends paid during the 2017-18 financial year.
- The revised franking amount may impact your 2017-18 income tax return.
The Company will issue a notice to each shareholder reflecting the correct amount of franking credit by the end of September.
For more information, read the Shareholder Update dated 10th September 2018.
Financial Year 2017-18
The Company announced a final, fully franked dividend of 2.1 cents per share and a fully franked special dividend of 1.0 cent per share, both to be paid on 31 October 2018.
The Company offers a Dividend Reinvestment Plan (DRP) for shareholders. Shareholders participating in the DRP will benefit from a 3% discount. To participate in the DRP for the final and special dividend payments, shareholders must provide their election to the Company before 5pm on 3 October 2018. Further details regarding dividend payments will be sent to shareholders in the coming weeks.
The table below summarises the key dates related to the final and special dividend for the year ended 30 June 2018.
|Ex-Dividend date||1 October 2018|
|Record Date||2 October 2018|
|Last Election date for DRP||3 October 2018|
|Payment Date||31 October 2018|
The Company currently intends to pay a dividend to Shareholders twice a year. The amount of the dividend will be at the discretion of the Board and will depend on a number of factors, including future earnings, capital requirements, financial conditions, future prospects and other factors that the Board deem relevant. It is the current Board policy that all dividends paid to Shareholders will be franked to 100% or to the maximum extent possible.
Dividends will be paid out of the Company’s profit from its investment operations.
Franking credits on dividends received by QV Equities will be passed on to QV Equities shareholders through dividends that are fully or substantially franked, depending on tax credits available to the Company. The franked portion of QV Equities’ dividends provide tax benefits for Australian shareholders. Franked dividends also benefit overseas shareholders, since withholding tax is not deducted from such dividends.
Where possible, the LIC taxation benefits from profits earned from realised investment gains will be passed on to investors as dividends.
Dividend Reinvestment Plan
QVE offers a Dividend Reinvestment Plan (DRP) for shareholders.
To participate in QVE’s DRP for the final dividend payment, shareholders had to provide their election to the Company before 5pm on 3rd October 2018.
|DRP terms and conditions|