Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 20-Jul-15

BHP Billiton’s progressive dividend policy is expected to cost it about $US6.5bn ($A8.7bn) in fiscal 2015, while Rio Tinto faces a $US4.1bn impost by maintaining the policy. Ben Davis of Liberum Capital argues that the resources giants should finance their progressive dividend policies via debt, saying the low cost of accessing debt markets will make this a viable strategy for several years. He notes that some investors would sell out of BHP and Rio if they adopted a dividend payout ratio.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, LIBERUM CAPITAL LIMITED, GLENCORE PLC, ABERDEEN ASSET MANAGEMENT LIMITED, CITIGROUP PTY LTD, ANGLO AMERICAN PLC