What Other Types of Dividends are There?
There are other types of dividends available to shareholders when investing in companies. These include two main sources, franking credits and trust based dividends. Franking credits are a representation of a company’s taxes as paid from its profits before tax. The advantage to these is that shareholders can offset them against any income tax they have in a dollar for each credit system, also termed as dividend imputation. However, non-profits, charities and pension funds cannot use this as their profits are non-taxable. Trust dividends are found in real estate and are subject to a property’s exact market value versus the value of a share on the stock market.