Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hi clifp !

I understand there is an additional distribution for non-residents, but isn't that distribution basically offset by the 15% withholding by the NZ goverment which we don't get back?

So my question is don't we actually see 85% of $2.78 ~= 2.40? So for purposes of comparing NTZ yield with other investments should we ignore the supplemental distribution?


In a word - Yes.

As I understand it, one should count only what one can stick in one's pocket. When calculating the dividend return, one should use only the amount that we actually get to keep. ie: If they pay a dividend of $3million per share and because of taxes we get to keep only $2.78, then the dividend return is $2.78/share price ... NOT $3million/share price. The $3million looks good but the $2.78 is the actual dividend.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement