DIVIDENDS – AUSTRALIA

Boards woo investors with ASX buybacks

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Original article by Alex Gluyas
The Australian Financial Review – Page: 29 : 20-Aug-25

Analysis by MST Marquee shows that most Australian-listed companies that announce buybacks tend to outperform the broader sharemarket by an average of 10 per cent in the following 12 months. Twelve listed companies have revealed plans to repurchase some $5bn worth of their shares so far in the current reporting season; this compares with the 10 companies that announced just $2.8bn worth of buybacks during the August 2024 reporting season. The growing trend towards buybacks has coincided with an overall decline in the dividend payouts of listed companies.

CORPORATES
MST MARQUEE

ASX faces dividend horror story as companies slash payouts

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Original article by Alex Gluyas
The Australian Financial Review – Page: 21 : 5-Mar-25

The combined dividend payout for companies in the benchmark S&P/ASX 200 Index was just $31.2bn in the February reporting season. Bell Potter strategist Richard Coppleson notes that it is the lowest payout for this period since 2021, at the height of the COVID-19 pandemic. The three major listed iron ore miners reduced their dividends in response to a sharp fall in the price of the steel input during 2024. Citigroup expects further decline in the mining sector’s dividends, amid expectations that the iron ore price will also fall as new supply enters the market later in 2025. The firm also anticipates lower dividends from bank stocks, which dominate the ASX along with resources stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, CITIGROUP PTY LTD

Weak conditions to put a dampener on dividends

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Original article by Glenda Korporaal
The Australian – Page: 13 & 16 : 11-Sep-24

Australian-listed companies paid out more than $80bn worth of dividends in 2023-24, which is five per cent higher than the previous financial year. However, Ryan Felsman from CommSec warns that shareholders should expect lower dividend payouts in 2023-24. He says that energy, consumer discretionary and real estate stocks in particular are likely to deliver lower dividends in the current fiscal year. A report from CommSec has concluded that despite some headwinds, returns on Australian shares are still attractive compared with alternatives such as bank deposits, bonds and international equities.

CORPORATES
COMMONWEALTH SECURITIES LIMITED

Big mining dividends to drop on price slump

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Original article by Alex Gluyas
The Australian Financial Review – Page: 27 : 4-Apr-24

The 2023-24 interim dividends of iron ore majors Rio Tinto, BHP and Fortescue exceeded expectations. However, the price of the steel input has shed more than 20 per cent so far in 2024, and Morgan Stanley has warned that payouts from the big miners are likely to fall. The firm notes that BHP’s dividend payout is most at risk, citing factors such as the resources group’s debt position and the potential costs arising from legal action over the Samarco dam disaster in Brazil. Morgan Stanley says Rio Tinto is its top pick in the iron ore sector, while it has an ‘equal weight’ rating on BHP and an ‘underweight’ rating on Fortescue.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE LIMITED – ASX FMG, MORGAN STANLEY AUSTRALIA LIMITED

$21.7b dividend windfall set to land

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Original article by Tom Richardson
The Australian Financial Review – Page: 29 : 26-Sep-23

BHP tops the list of Australian companies that will pay dividends in the final week of September. The resources group accounts for $6.34bn of the $21.7bn worth of dividends that investors will receive in coming days. Commonwealth Bank shareholders will in turn receive a combined $4bn worth of dividends, while Fortescue Metals Group’s payout will be about $3.01bn. Cyan Investment Management portfolio manager Dean Fergie expects fewer shareholders to invest their dividends in equities, given that banks are offering much better returns on cash deposits compared with recent years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, FORTESCUE METALS GROUP LIMITED – ASX FMG, CYAN INVESTMENT MANAGEMENT PTY LTD

Dividends fall behind global peers as mining payouts slump

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Original article by Alex Gluyas
The Australian Financial Review – Page: 28 : 25-May-23

Data from global asset manager Janus Henderson shows that Australian-listed companies paid $27.9bn worth of dividends in the March quarter, which is 6.6 per cent lower than previously. In contrast, global dividend payouts rose by 12 per cent to a record high of $US326.7bn in the first three months of 2023. This result was boosted by US28.8bn worth of special dividends, the highest amount in nine years. Ben Lofthouse of Janus Henderson notes that the Australian sharemarket’s heavy weighting towards mining and bank stocks affects dividend payouts across the bourse.

CORPORATES
JANUS HENDERSON GROUP PLC – ASX JHG

Cashed-up New Hope to double coal volumes

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Mar-23

New Hope Corporation has posted a 2022-23 interim net profit of $668.6m, which is 102 per cent higher than previously. New Hope received an average of $467.40 a tonne for its thermal coal during the six months to 31 January. Shareholders will receive an interim dividend of $0.30 per share and a special dividend of $0.10 a share. Meanwhile, New Hope expects coal production from its existing mines to exceed 14 million tonnes in 2026, compared with 7.6 million tonnes in 2022. However, CEO Rob Bishop warns that a coal shortage is looming, given that the new mines that are opening in Australia will not be sufficient to offset the number of mines that are slated to close in coming years.

CORPORATES
NEW HOPE CORPORATION LIMITED – ASX NHC

CBA unveils $2bn share buyback

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Original article by Joyce Moullakis
The Australian – Page: 13 & 24 : 10-Feb-22

The Commonwealth Bank of Australia has posted a 2021-22 interim cash profit of $4.75bn, which is 23 per cent higher than previously. The result was boosted by strong growth in mortgage and business loans and a decline in bad debts. However, the bank’s net interest margin fell by 17 basis points to 1.92 per cent. Shareholders will receive a fully franked interim dividend of $1.75 per share, while CBA will repurchase $2bn worth of its shares. CEO Matt Comyn has flagged the possibility of returning more capital to shareholders.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Seven West Media won’t commit to dividend timetable

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Original article by Miranda Ward
The Australian Financial Review – Page: 24 : 10-Nov-21

Seven West Media suspended its dividend payments in 2018, in order to focus on reducing debt. Chairman Kerry Stokes has told the group’s AGM that it will review its dividend policy in 2022, but he declined to make any commitment as to when dividends will resume. Stokes also defended the remuneration package of CEO James Warburton, whose total pay topped $7.6m in 2020-21; Stokes says that Warburton is paid for performance, and his pay reflected the challenges faced by Seven during the last year, including the global pandemic.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM

Investors rewarded with bumper dividends, buybacks

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Original article by John Collett
Brisbane Times – Page: Online : 1-Sep-21

CommSec’s chief economist Craig James is cautious about the outlook for the Australian sharemarket in the wake of the August reporting season. He notes that the recent strong performance of many listed companies has already been priced into sharemarket valuations. Capital management was a key feature of the reporting season, with listed companies announcing some $20bn worth of share buybacks, while investors will receive more than $34bn worth of dividend payments. Peter Warnes of Morningstar says investors should expect lower dividend payouts in 2022.

CORPORATES
COMMONWEALTH SECURITIES LIMITED, MORNINGSTAR PTY LTD