If I use a php 301 redirect for my outbound links, will pagerank be passed onto the destination URLs? e.g if I created a link on mydomain.com to mydomain.com/digitalpoint.php. And then use a PHP 301 to point to digitalpoint.com - does digitalpoint.com get backlink pagerank benefits?
Yes it does. 301 redirect is a permanent redirect so your telling google the URL has permanently been moved. It's the best for SEO.
Ofcourse you cud do it without hesitation. As earlier post said it is best for seo that is very right.....................