The div tax we all now pay, that the company doesnt, how does that impact on their tax and maybe more importantly their profit numbers as a % ?. Are we comparing apples if we dont take this into account?
Agreed, not comparing apples with apples. Take Sasol for example, earlier in the year they declared an interim dividend of R5.70 per share and stated Â“no change from same period last yearÂ”. There was however a change in that the net divi is now R4.85 as opposed to R5.70 previously [no change would have required a dividend of R6.33 to be declared], this is also resulting in companies overstating profits Â– one never really hears the analysts speak about it on TV. I can remember Simon raised this issue earlier in the year, but canÂ’t remember anyone else speaking about it.
technically, they should have passed on the STC savings to shareholders via the dividends. So instead of them incurring STC, we would incur DWT. I would be interested to see if any analysts out there have calculated whether this has actually happened or not
skaap, hard to really fathom, best metric is dividend cover ratio and for biggies that hasn't changed much - so in short they have .. but the spin was look at our great div increase, when actually it wasn't as great