Banks, miners set for big payout boost

Original article by William McInnes
The Australian Financial Review – Page: 24 : 26-May-21

Jane Shoemake of global asset manager Janus Henderson is upbeat about the outlook for Australian dividend payouts in 2021. She notes that mining companies and the major banks dominated the list of the 10 biggest dividend payers in 2019 and 2020, and investors are set to benefit from high commodity prices and a rebound in dividend payments in the banking sector. Shoemake also expects energy stocks and defensive retailers such as Coles Group and Woolworths to increase their dividends.

CORPORATES
JANUS HENDERSON GROUP PLC – ASX JHG, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Returns the world’s best over 121 years

Original article by Cliona O’Dowd
The Australian – Page: 20 : 5-Mar-21

Data from Credit Suisse shows that the Australian sharemarket has outperformed other bourses over the long-term, with real annual returns of 6.6 per cent since 1900 in US dollar terms. The ASX’s annualised return over this period was 6.8 per cent in local currency terms, behind the 7.1 per cent return from the South African bourse. Looking ahead, Credit Suisse says Generation Z can expect annualised equity returns of about three per cent, compared with annualised returns of 7.1 per cent since 1950 for Baby Boomers.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED

Results so far are a shot in the arm for investors

Original article by David Rogers
The Australian – Page: 23 : 20-Aug-20

The S&P/ASX 200 has gained two per cent since the start of the August reporting season. Investors have responded positively to earning results, dividend payouts and outlook guidance, as well as a rally in the S&P 500 and the continued strength of commodity prices. Indeed, dividend announcements were a common factor among many stocks that outperformed on 19 August; likewise, a lack of dividend payments contributed to some stocks being sold down.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX

Handle the market with care: ASIC

Original article by Eli Greenblat
The Australian – Page: 13 & 20 : 7-May-20

The Australian Securities & Investments Commission has expressed concern about a rise in day-trading activity among so-called ‘mum and dad’ investors during the coronavirus lockdown. ASIC notes that even market professionals often find it hard to time the market during volatile trading conditions, and it warns that retail investors risk incurring significant losses at a time when many cannot afford to do so. ASIC also notes that more retail investors are trading in complex investment products such as contracts for difference.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Shares near all-time high as rates fall

Original article by Melissa Yeo
The Australian – Page: 21 & 29 : 5-Jul-19

The S&P/ASX 200 reached a new 12-year high during intra-day trading on 4 July, and the benchmark index is now just 133 points shy of its record high of October 2007. George Kanaan of UBS says the fall in bond yields has been the key driver for local and international shares in 2019. The federal government’s income tax cuts package has also boosted sentiment among Australian investors; Plato Investment Management’s MD Don Hamson says the tax cuts could have the same stimulatory impact as two reductions in the cash rate.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UBS HOLDINGS PTY LTD, PLATO INVESTMENT MANAGEMENT LIMITED, PEPPERSTONE GROUP LIMITED, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, DOW JONES INDUSTRIAL AVERAGE INDEX, KPMG AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Rate cut may lead to riskier investing

Original article by Sarah Turner
The Australian Financial Review – Page: 31 : 13-Jun-19

Anthony Doyle of Fidelity International says Australian savers are likely to seek out higher-yielding and higher-risk investments following the Reserve Bank’s decision to reduce the cash rate to a new low of 1.25 per cent. He notes that there was a similar trend in the UK following the global financial crisis, with Britain’s cash rate reaching a low of just 25 basis points. Doyle also expects the search for yield to bolster Australia’s corporate bond market.

CORPORATES
FIDELITY INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, M&G INVESTMENT MANAGEMENT LIMITED

Property risk to credit market

Original article by Samantha Bailey
The Australian – Page: 19 : 9-May-19

Fitch Ratings’ latest quarterly survey of fixed-income investors shows that 70 per cent of respondents consider a housing market downturn to be the biggest risk to Australia’s credit market. This compares with just 29 per cent a year ago. The survey also shows that nearly all respondents anticipate a further decline in house prices, compared with 52 per cent a year ago. Meanwhile, 60 per cent of respondents expect official interest rates to be cut by up to 50 basis points over the next 12 months.

CORPORATES
FITCH RATINGS LIMITED

Dividend credit refunds distort economic system

Original article by Michael Roddan
The Australian – Page: 19 & 26 : 24-Jan-19

Professor Kevin Davis from the University of Melbourne has expressed support for Labor’s plan to abolish cash refunds for excess dividend imputation credits. He says that dividend imputation was intended to prevent the double taxation of corporate profits, and providing franking credit refunds for investors who do not pay tax has resulted in a "significant economic distortion". Meanwhile, the University of Sydney’s Andrew Ainsworth says retail investors may be engaging in short-term trading to receive franking credit refunds.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF SYDNEY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, GRATTAN INSTITUTE, RESERVE BANK OF AUSTRALIA

Year of shame puts floats on ice

Original article by Jonathan Shapiro, Sarah Thompson
The Australian Financial Review – Page: 1 & 18 : 10-Dec-18

Hugh Dive of Atlas Funds Management says the financial market is approaching the end of its bull run, resulting in lower-quality IPOs. Sebastian Evans of NAOS says many companies have no good reason for listing on the Australian sharemarket, and he does not anticipate an improvement in the quality of IPOs in the near-term. Meanwhile, Andrew Stevens of UBS says investors are becoming more selective with regard to IPOs. Coronado Global Resources and Viva Energy are among the recent IPOs that have underperformed.

CORPORATES
ATLAS FUNDS MANAGEMENT PTY LTD, NAOS ASSET MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD, CORONADO GLOBAL RESOURCES INCORPORATED – ASX CRN, VIVA ENERGY GROUP LIMITED – ASX VEA, REDCAPE HOTEL GROUP – ASX RDC, SMILES INCLUSIVE LIMITED – ASX SIL, EVANS DIXON LIMITED – ASX ED1, BLUE SKY ALTERNATIVE INVESTMENTS LIMITED – ASX BLA, PROSPA GROUP LIMITED, RAIZ INVEST LIMITED – ASX RZI, TRIMANTIUM GROWTHOPS LIMITED – ASX TGO, RCR TOMLINSON LIMITED – ASX RCR, LATITUDE FINANCIAL PARTNERS, WOODSIDE PETROLEUM LIMITED – ASX WPL, TRANSURBAN GROUP LIMITED – ASX TCL

Record looms as dividends ready to soar

Original article by Sarah Turner
The Australian Financial Review – Page: 20 : 24-Sep-18

Australia’s S&P/ASX 200 has gained around two per cent so far in 2018, and analysts are hopeful that the market will be bolstered by some $13bn worth of dividend payments in the last week of September. Richard Coppleson of Bell Potter estimates that listed companies will pay out around $18.9bn in dividends for the month, compared with $16.4bn in September 2017. The resources sector has accounted for four of the top five companies in terms of the size of dividend increases in 2017-18, and Shane Oliver of AMP Capital notes that this is having a flow-on effect across the broader market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, AMP CAPITAL INVESTORS LIMITED, BHP BILLITON LIMITED – ASX BHP, ALUMINA LIMITED – ASX AWC, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, CSL LIMITED – ASX CSL, CREDIT SUISSE (AUSTRALIA) LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, FORTESCUE METALS GROUP LIMITED – ASX FMG, AMP LIMITED – ASX AMP