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Can someone smart explain this to me

Discussion in 'Other Asset Classes' started by Darlinghurst Boy, 18th Feb, 2016.

  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

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    im looking at an example Collection House on the ASX .$1.38 a share

    Ok so it says " interim ex dividend date - 9 March
    And .... " interim record date - 10 MArch
    Interim dividend date - 7 April

    So my questions are ... Does it mean if i buy before March 9th I can get dividends on the 7th April ???
    So if i bought 10,000 shares on March 8th and get my dividend on April 7th then i can sell the next day ??

    If thats the case ....
    It seems to be only 4 cents a share though , would it be worth it ?
     
  2. truong

    truong Well-Known Member

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    Yes in theory, but in practice the SP generally has all of that already built in.

    By that I mean, SP goes up just before the ex-div date then drops just after that. You’ll find that very often the drop is about the same size as the dividend, sometimes more if franking is also considered. Net result is zip and just a waste of time, at least for someone with a long/medium term strategy.
     
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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Don't forget that to obtain imputation credits you generally need to hold the shares 45 days (or 47)
     
  4. marty998

    marty998 Well-Known Member

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    Not if you are claiming less than $5000 in franking credits for all holdings for the year?

    CLH is the sort of stock that should do well in bad times... debt collectors don't generally have much to do in good times.

    They have been added to a panel of private companies who collect outstanding ATO debts. Given the propensity for many to put paying their taxes off into the never never it may turn out well for them.

    Apparently there was some boardroom trouble late last year with the founder and major shareholder selling down a significant stake? Can't recall exactly..DYOR
     
  5. S0805

    S0805 Well-Known Member

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    That's interesting. So in this case company itself will not pay franking credit to you on holdings or onus is in you as shareholder to monitor this.
     
  6. BarneyRubble

    BarneyRubble Well-Known Member

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    Dennis Punches...he is old and sold in prep for retirement. It spooked the market, however it should not have done.

    No Cookies | The Courier Mail

    The recent fall I see as a buying opportunity, indeed I have an order in at the moment to top up my existing holding.
     
  7. marty998

    marty998 Well-Known Member

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    No I think there's a misunderstanding here. You are not allowed to claim franking credits if you have not held the shares for more than 45 days and you are claiming over $5000 in total franking credits across your portfolio.

    The 45 day rule is actually 90 days for preference shares or hybrids.

    The shares must also be held "at risk". If you have managed your risk by buying a put option then you are not permitted to claim any franking credits.

    See here for further info:
    You and your shares 2013-14 | Australian Taxation Office
     
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