| Dividend Imputation | |
 An arrangement in Australia that eliminates the double taxation of dividends. |
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 Double taxation of dividends occurs when both a company and a shareholder pay tax on the same income. The company pays taxes on profits and subsequently distributes a dividend out of their after-tax profits. Shareholders must then pay tax on the dividend received. The tax imputations indicate to the government that the company issuing the dividend has already paid a portion of the tax due. The shareholder is able to reduce the tax paid on the dividend by the amount of the tax imputation credits. |
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 How Dividends Work For Investors - They might not be as "sexy" as growth stocks, but paid dividends are profits put directly into your hands. Dividend Reinvestment Plans--Are They for You? - Thanks to DRIPs, you can directly invest into some of the world's top corporations for just $10! How and Why Do Companies Pay Dividends? - Explore arguments for and against company dividend policy, and learn how companies determine how much to pay out. |
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