- A fully franked dividend is paid out of already taxed earnings.
- Franked dividends have franking credits connected to them and indicate the amount of tax the business has paid.
- ASX-listed players offering fully franked dividends include Rio Tinto, BHP Limited, Commonwealth Bank, and National Australia Bank, among others.
A fully franked dividend is paid from already-taxed earnings. A franked dividend has franking credits connected to it, indicating the amount of tax the Company has paid.
If a Company pays a fully franked dividend, it means that it has paid tax on the money at a company tax rate of 30%. This indicates that the money is not tax by the ATO twice.
In this article, we would look at 10 ASX listed blue-chip stocks providing fully franked dividends.
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BHP Group Ltd (ASX:BHP)
BHP Group is the leading global resources company that has consistently provided dividends since 2012. It has provided a fully franked interim dividend of AU$1.311 and has an annual dividend yield of 4.00%.
For nine months ended 31 March 2021, the Company attained record production at Western Australia Iron Ore and the highest average concentrator output delivered at Escondida. In FY2021, production guidance for petroleum and iron ore remains the same, and copper guidance has increased and is now in the 1,535 kt - 1,660 kt range.
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Rio Tinto Ltd (ASX:RIO)
Rio Tinto, the producer of copper, gold, iron ore, coal, aluminium, borates, titanium dioxide and other minerals and metals, provided a fully franked final dividend of AU$5.171 on 14 April 2021. The Company has consistently provided dividends since 2011.
In Q1 FY2021, RIO achieved an overall solid operating performance. Further, it maintained its guidance ranges in all our products.
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Commonwealth Bank of Australia (ASX:CBA)
Commonwealth Bank of Australia is the largest provider of integrated financial services in Australia. CBA has consistently provided dividends since 2012. It provided a fully franked interim dividend of AU$1.500 and has an annual dividend yield of 2.52%.
On 21 June 2021, CBA decided to sell the Australian general insurance division to South Africa-based Hollard Group. At the same time, CBA established its 15-year strategic partnership with Hollard to distribute home and motor vehicle insurance products to its retail clients in the country.
Westpac Banking Corp (ASX:WBC)
Westpac Banking Corp is the oldest bank in Australia and amongst the largest bank in New Zealand. Westpac has consistently provided a dividend to its shareholders since 2013. It provided a fully franked interim dividend of AU$0.580 per share and has an annual dividend yield of 3.56%.
On 06 July 2021, WBC signed a deed with Fidelity Life Assurance Company Limited to unload Westpac Life-NZ- Limited. Further, it signed an exclusive 15-year deal to distribute life insurance products to WBC’s NZ clients.
National Australia Bank Ltd (ASX:NAB)
National Australia Bank Ltd is amongst the top four largest banks in Australia, and it offers banking, financial and related services. NAB has consistently provided dividends since 2011. In 1H FY2021, the Company provided a fully franked interim dividend of AU$0.600 per share. It has an annual dividend yield of 3.45%.
On 14 June 2021, NAB reached an accord to settle a class action initiated in the United States in 2016.
Australia and New Zealand Banking Group Ltd (ASX:ANZ)
Australia and New Zealand Banking Group Ltd give banking & financial products as well as services to individual and business clients. Since 2012, ANZ has consistently provided dividends. The Company provided an interim dividend of AU$0.700 on 01 July 2021.
Fortescue Metals Group Ltd (ASX:FMG)
Fortescue Metals Group Ltd is into mining, processing, and transporting iron ore for export from its deposits within the Pilbara region of WA.
FMG has constantly provided dividends since 2011. In 1H FY2021, the Company provided a fully franked interim dividend of AU$1.470 on 24 March 2021.
Recently, Fortescue Future Industries reached its 30 June 2021 targets for early decarbonisation projects.
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Wesfarmers Ltd (ASX:WES)
Wesfarmers is one of the largest listed companies on ASX, and its diverse business includes:
- home improvement and outdoor living
- clothing & general merchandise
- office supplies
- an Industrials group - businesses in energy and fertilisers, chemicals, and industrial and safety products.
The Company has consistently provided dividends since 2012. In 1H FY2021, the Company provided an interim dividend of AU$0.880.
Wesfarmers has submitted a non-binding, indicative offer to the Board of Australian Pharmaceutical Industries Limited to purchase 100% of Australian Pharmaceutical Industries Limited’s shares outstanding for each share at AU$1.38 via a scheme of arrangement.
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Woolworths Group Ltd (ASX:WOW)
Food, general merchandise, and specialty retailer Woolworths Group Ltd have consistently provided dividends since 2011. In 1H FY2021, the Company provided an interim dividend of AU$0.530 per share on 14 April 2021.
Recently, Woolworths announced the demerger of Endeavour Group Limited.
Aristocrat Leisure Limited (ASX:ALL)
Aristocrat Leisure Limited plans, develop, manufactures and markets various products & services involving electronic gaming machines, casino management systems, and digital social games.
The Company has provided dividends since 2011. It provided a fully franked interim dividend of AU$0.150 on 02 July 2021.
In 1H FY2021 (period ended 30 March 2021), the Company delivered an 18.4% growth in NPAT. Operating revenue dropped by 1% as compared to the previous corresponding period.
Stock Information (as of 16 July 2021)