franked

Definition

Referring to dividends that include a tax credit for the corporate income tax already paid by the company, effectively reducing the tax burden on the shareholder.

Etymology

Derived from the medieval French 'franc', meaning free or exempt, the term historically referred to the 'franking' of mail to indicate it was exempt from postage charges.

In the news

Shine Justice declared a fully franked dividend, which allows shareholders to benefit from the tax the company has already paid, making the dividend more tax-efficient for Australian investors.

Shine Justice FY26 slides: underlying earnings surge despite legacy charges

Investing.com

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