- Franked dividends are dividends paid by Australian businesses from their earnings with a tax credit attached to them.
- Franked dividends are designed to remove any double taxation-related challenges. They also help create competitive markets by reducing the tax burden on dividends.
- Fortescue Metals, JB Hi-Fi, Rio Tinto, and IOOF Holdings are a few stocks that provide fully franked dividends.
Franked dividends are dividends paid or credited by the Australian businesses from their respective profits, with a tax credit attached to them. They are specifically designed to remove any challenge related to double taxation of dividends for investors.
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In these cases, the shareholder submits the dividend income along with franking credit, but taxation is done only on the dividend portion.
In this article, we would look at ten ASX-listed stocks that offer 100% franked dividends.
Fortescue Metals Group Ltd (ASX:FMG)
Fortescue Metals Group Ltd is a global leader in the iron ore industry known for its culture, innovation, and growth of infrastructure & mining assets in Pilbara, WA.
In 1H FY2021 (period ended 31 December 2020), the Company provided a fully franked dividend of AU$1.47 per share, up 93% compared to the previous corresponding period (pcp). Further, FMG has a pledge to shareholder returns aiming at the top end of its dividend policy to pay out 80% of full-year NPAT. The remaining 20% would be used to support future growth.
The annual dividend yield on 07 July 2021 stood at 10.57%.
Harvey Norman Holdings Limited (ASX:HVN)
Harvey Norman Holdings Limited is an ASX-listed company, and its principal activities include integrated retail, franchise, property & digital enterprise.
Harvey Norman reported solid 1H FY2021 results with PBT and PAT growth of growth of 113.8% and 116.3%, respectively. The Company provided a 100% franked interim dividend of 20 cents per share.
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HVN’s annual dividend yield on 07 July 2021 is 7.03%
JB Hi-Fi Limited (ASX:JBH)
JB Hi-Fi Limited is a specialty retailer of home consumer products. It focuses on consumer electronics, software (comprising music, games, movies), white goods and appliances.
The Board sets JBH’s dividend policy, and it gets renewed when the Board feels it appropriate.
1H FY2021 (period ended 31 December 2021) delivered solid sales, NPAT and EPS growth by 23.7%, 86.2% and 86.2%, respectively.
The Company announced a fully franked interim dividend of 180 cents per share, up 81.8%. JBH’s annual dividend yield on 07 July 2021 is 5.56%.
NRW Holdings Limited (ASX:NWH)
NRW Holdings Limited is offers contract services to Australia’s resources and infrastructure sectors.
NRW Holdings delivered solid results in 1H FY2021 (period ended 31 December 2020) with 44% growth in revenue to AU$808.7 million and EBITDA by 28% to AU$132.8 million. The Company declared a fully franked dividend of 4 cents per share.
Also, based on the strong results delivered in 1H FY2021, the Company updated its dividend policy. The Board decided that in the upcoming period, the dividend payout ratio will be 40% to 60% of Normalised Net earnings.
NWH’s annual dividend yield on 07 July 2021 is 5.44%.
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Rio Tinto Limited (ASX:RIO)
Rio Tinto Limited produce iron ore for steel, aluminium for cars & smartphones, copper for wind turbines, diamonds, titanium for domestic products and borates for harvests. The Company’s business expands in 35 countries. These businesses include mines, smelters, and refineries. RIO also operates in sales offices, data centres, R&D labs and with AI.
In FY2021, the Company announced a total dividend of 557 US cents, including a special dividend of 93 US cents per share. Despite challenging 2020, the Company announced strong results, driven by underlying EBITDA of US$23.9 billion and a Return on Capital Employed (ROCE) of 27%.
RIO’s annual dividend yield on 07 July 2021 is 5.84%.
INTERESTING READ: Which is bigger - BHP or Rio Tinto?
Platinum Asset Management Limited (ASX:PTM)
Platinum Asset Management Limited is a fund manager which focuses on investing in global equities.
In 1H FY2021, PTM reports an 8.5% growth in its total revenue to AU$166.607 million and 14.4% growth in the net profit to AU$90.420 million. It declared a fully franked interim dividend of 12 cents per share, paid on 18 March 2021.
PTM’s annual dividend yield on 07 July 2021 is 4.93%.
Alumina Limited (ASX:AWC)
Alumina Limited is a prominent Australian business registered on ASX as well as OTC market in the US. AWC invests globally in bauxite mining, alumina refining, and selected aluminium smelting businesses via its 40% Alcoa World Alumina & Chemicals rights.
In FY2020 (period ended 31 December 2020), the Company reported a statutory NPAT of US$146.6 million. It declared a fully franked dividend of 2.9 US cents per share, paid on.
AWC’s annual dividend yield on 07 July 2021 is 4.66%.
Source: Copyright © 2021 Kalkine Media
Metcash Limited (ASX:MTS)
Metcash Limited is the top wholesale distribution and marketing company in Australia. It is a wholesaler to independent retailers from the food, grocery, liquor, hardware, and automotive industries.
In FY2021 results (period ended 30 April 2021), the Company reported a significant growth in sales volume. MTS reported an underlying NPAT of AU$252.7 million. Operating cash flow increased from AU$117.5 million to AU$475.5 million.
MTS’s annual dividend yield on 07 July 2021 is 4.60%.
IOOF Holdings Limited (ASX:IFL)
IOOF Holdings Limited is the leading provider of quality financial advice, products, and services in Australia.
IOOF Holdings reported an underlying NPAT from continuing operations of AU$65.9 million for 1H FY2021 ended 31 December 2021. Statutory NPAT from continuing operations increased by 96% to AU$54.4 million on pcp.
IFL declared a fully franked dividend of 11.5 cents per share, with ordinary dividend of 8 cents per share and a special dividend of 3.5 cents.
IFL’s annual dividend yield on 07 July 2021 is 5.34%.
Regis Resources Limited (ASX:RRL)
Regis Resources is a high-margin gold producer and explorer. It has more than ten years of steady production & reserve growth.
In 1H FY2021, the Company declared an NPAT of AU$84.8 million and a net profit margin of 21%. The Company declared a 100% franked dividend of 4 cents per share.
RRL’s annual dividend yield on 07 July 2021 is 4.72%.