franked dividend

Definition

A dividend paid out to shareholders where the company has chosen to pay the tax on the dividend. When an investor receives a franked dividend, the investor receives a tax credit for the amount of tax that the company paid on the dividend. This practice is most commonly seen in Australia.

Use franked dividend in a sentence

The franked dividend had the taxes paid on it, the investors had mixed feelings about the tax treatment of the dividend.

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The franked dividend was a really interesting thing to me and I thought things needed to be different for us to make it work.

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Although they had never seen it before, they were told it was pretty common in Australia. The company paid the tax on the dividend they received as part of a franked dividend.

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