Definition, Meaning & Synonyms

franked-investment-income

noun

/ˈfræŋkt ˈɪnvɛstmənt ˈɪnkʌm/

Definition

Income that has had tax already paid on it before being distributed to investors.

Examples

Many investors prefer franked investment income because it reduces their tax burden.
During a financial review, she noted that her franked investment income had increased significantly.
Franked investment income is particularly attractive in retirement accounts.

Meaning

Franked investment income typically refers to dividends received by investors that have been taxed at the corporate level. This means that when the investor receives the income, they do not have to pay the dividend tax again, as it has already been taken care of by the company distributing the dividends.