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I have an SMSF which has relied heavily on Franking Credits. I have some decisions to make about re balancing my shareholding if (when) Labour gets elected What happens to the Franking Credits on retained profits that are not given to Shareholders each year ? Are these accumulated by the company and what can they do with them? Is it likely that these could be distributed to shareholders before the end of the year in the case of the Big Banks?
I don’t think the BHP buyback for super funds in pension phase is necessarily a no brainer as suggested.
- The shares sold don’t qualify for the special div (whatever that may be).
- The franking component of the buyback is not received for nearly 12 months (when tax return lodged).
- If you want to repurchase shares sold you will have considerably less cash (14%) with which to purchase and I would guess the shares cost would rise due to expectation of the special dividend and less shares held overall.
My SMSF is in pension mode. I have 2 queries. Firstly, my average holding price for BHP shares is $31.50, rather than the $15.00 which you quote in your example. Is the buy-back still as attractive ?
Secondly, is the offer still attractive if there is a big ASX-200 rout over the next few weeks, implying a much lower BHP price ?