Whitefield aims to pay ordinary dividends in each year which are approximately equal to its net operating profit after tax, excluding realised gains on investments. Dividends will be franked to the extent that franking credits are available at the time of payment of the dividend. Whitefield’s dividends have been fully franked since 1988, shortly after the introduction of the dividend imputation system.
In addition to ordinary dividends, Whitefield may periodically pay fully franked LIC discount dividends. LIC discount dividends are distributions of eligible LIC discount capital gains made by the Listed Investment Company (LIC). In addition to the benefit of franking credits, these dividends also provide investors with a tax deduction for 50% (in the case of individuals) and 33% (in the case of super funds) of the gross value of the attributable LIC discount dividend. This process provides investors with the benefit of the capital gains discount regime on eligible capital gains made by Whitefield.
Whitefield will generally seek to pay dividends to shareholders at appropriate points of time to the extent that LIC discount capital gains are available.