One way to spread your risk and to diversify your investment portfolio might be to invest in both BHP and Woolworths shares.
If you look in the shares section of a newspaper or financial paper they will often list the price, dividend yield, the franking credit and possibly the P/E Ratio, as well as other indicators. Alternatively, this information is also available online – such as www.asx.com.au.
Dividends from Australian shares may also have a franking credit. A franking credit represents tax already paid by the company on your dividends and can affect the after-tax return to you.
The credit may also be called an imputation credit. How franking credits affect the tax payable by a shareholder is explained in the Tax and Structures module.
You can purchase shares in publicly listed companies (which are traded on a stock exchange) or a private company. You can invest in shares both locally and internationally.