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Franking credits are attached to dividend, so you get them for yr tax return that year. (Only the) Dividend is reinvested and forms the capital base of that new parcel of shares for future CGT considerations.
...
The DRP is "cheap" with NSC posting Feb NTA if 89c but trading much lower at 69c (March NTA not out yet; likely today and lower)

4A.5 .. DRP price calculation methodology
DRP shares were acquired on-market as the share price was trading below NTA.
4A.6 .. DRP Price (including any discount):
AUD 0.68130
4A.8 Will DRP +securities be a new issue?
NO

So, there's a value there, ability to pick up a few extra shares close to market without brokerage.

BUT... ... will NSC ever uplift and close the discount to NTA? There's a share buyback happening, but some factors see the gap remaining, imo.

[USER=71583]@Belli[/USER] posted in AFI thread a good commentary on some factors as to LICs trading at a NTA premium or discount. Although relating to AFI, it is pertinent to all LICs
[URL unfurl="true"]https://www.afi.com.au/news/what-it-means-to-trade-at-a-discount-or-premium-to-nta[/URL]

<blockquote data-quote="Dona Ferentes" data-source="post: 1222543" data-attributes="member: 66457">Franking credits are attached to dividend, so you get them for yr tax return that year. (Only the) Dividend is reinvested and forms the capital base of that new parcel of shares for future CGT considerations....The DRP is &quot;cheap&quot; with NSC posting Feb NTA if 89c but trading much lower at 69c (March NTA&nbsp; not out yet; likely today and lower)4A.5 .. DRP price calculation methodologyDRP shares were acquired on-market as the share price was trading below NTA.4A.6 .. DRP Price (including any discount):AUD 0.681304A.8 Will DRP +securities be a new issue?NOSo, there&#039;s&nbsp; a value there, ability to pick up a few extra shares close to market without brokerage.BUT... ... will NSC ever uplift and close the discount to NTA? There&#039;s a share buyback happening, but some factors see the gap remaining,&nbsp; imo.[USER=71583]@Belli[/USER] posted in AFI thread a good commentary on some factors as to LICs trading at a NTA premium or discount. Although relating to AFI, it is pertinent to all LICs[URL unfurl=&quot;true&quot;]https://www.afi.com.au/news/what-it-means-to-trade-at-a-discount-or-premium-to-nta[/URL]</blockquote>

[QUOTE="Dona Ferentes, post: 1222543, member: 66457"] Franking credits are attached to dividend, so you get them for yr tax return that year. (Only the) Dividend is reinvested and forms the capital base of that new parcel of shares for future CGT considerations. ... The DRP is "cheap" with NSC posting Feb NTA if 89c but trading much lower at 69c (March NTA not out yet; likely today and lower) [I][COLOR=rgb(41, 105, 176)]4A.5 .. DRP price calculation methodology[/COLOR][/I] [COLOR=rgb(41, 105, 176)][I][B]DRP shares were acquired on-market as the share price was trading below NTA[/B]. 4A.6 .. DRP Price (including any discount): [B]AUD 0.68130[/B] 4A.8 Will DRP +securities be a new issue?[/I][/COLOR] [I][COLOR=rgb(41, 105, 176)][B]NO[/B][/COLOR][/I] So, there's a value there, ability to pick up a few extra shares close to market without brokerage. BUT... ... will NSC ever uplift and close the discount to NTA? There's a share buyback happening, but some factors see the gap remaining, imo. [USER=71583]@Belli[/USER] posted in AFI thread a good commentary on some factors as to LICs trading at a NTA premium or discount. Although relating to AFI, it is pertinent to all LICs [URL unfurl="true"]https://www.afi.com.au/news/what-it-means-to-trade-at-a-discount-or-premium-to-nta[/URL] [/QUOTE]

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