Shares, dividends, franking and the basics of investment returns.
5 terms in this topic
A dividend is a payment a company makes to its shareholders, usually out of profits, paid as cash or as extra shares.
Read definitionA dividend yield is the annual dividend per share divided by the current share price, shown as a percentage so income can be compared across shares.
Read definitionEquity is the share of an asset you actually own: its market value less any debt secured against it, such as a mortgage.
Read definitionFranking credits are tax credits attached to Australian dividends that pass on company tax already paid, so shareholders are not taxed twice on the same profit.
Read definitionYield is the income an asset produces over a year, expressed as a percentage of what it cost or what it is worth today.
Read definitionCompare finance options from 50+ lenders. Subject to lender approval, terms and conditions apply.
Get started