DIVIDENDS – AUSTRALIA

Worst is over for BHP after $8.2bn loss

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Original article by Matt Chambers
The Australian – Page: 21 & 24 : 17-Aug-16

BHP Billiton CEO Andrew Mackenzie is upbeat about the resources group’s outlook in 2016-17, after it posted a loss of $US6.39bn ($A8.27bn) for 2015-16. The result was marred by factors such as impairment charges associated with its US shale assets, lower commodity prices and the tailings dam disaster at the Samarco iron ore joint venture. BHP’s underlying profit fell from $US6.4bn to $US1.215bn, while the full-year dividend payout has fallen from $US1.24 per share to just $A0.30.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, ABERDEEN ASSET MANAGEMENT LIMITED

Newcrest’s Cadia ambitions grow

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Original article by Peter Ker
The Australian Financial Review – Page: 14 : 16-Aug-16

Australian-listed Newcrest Mining has posted a 2015-16 underlying profit of $US323m, which is 24 per cent lower than previously but in line with analysts’ forecasts. Meanwhile, CEO Sandeep Biswas says the gold producer will examine options for increasing the Cadia mine’s ore processing capacity beyond the 32 million tonnes per year for which it currently has regulatory approval. Shareholders will receive an unfranked dividend of $US0.075 per share, which is the first payout in more than three years.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ALLAN GRAY AUSTRALIA PTY LTD, SHAW AND PARTNERS LIMITED

CBA to drive returns as results soften

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Original article by Michael Bennet
The Australian – Page: 21 & 25 : 11-Aug-16

The Commonwealth Bank of Australia has posted a 2015-16 cash profit of $A9.45bn. Despite being a record result, it was just three per cent higher than previously, due to a disappointing performance across the group’s key businesses in the second half. CBA’s return on equity fell to 16.5 per cent and its net interest margin fell to 2.07 per cent. CEO Ian Narev says banks must take into account the needs of borrowers, savers and shareholders with regard to setting interest rates. Shareholders will receive a full-year dividend of $A4.20 per share.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WAVESTONE CAPITAL PTY LTD, RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, WATERMARK FUNDS MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED

Rio Tinto and BHP Billiton enter new era of dividends

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 3-Aug-16

The dividend payouts of BHP Billiton and Rio Tinto will be closely scrutinised in the August 2016 reporting season, after their progressive dividend policies were scrapped earlier in the year. BHP has committed to paying shareholders a minimum of 50 per cent of its underlying attributable profit as dividends, while Rio Tinto’s new dividend policy will take into account its financial results and future earnings outlook. Meanwhile, analysts polled by Bloomberg generally expect Rio Tinto to post a 2016 interim underlying net profit after tax of $US1.56bn.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, BLOOMBERG LP, VUMA

Northern Star improves dividend after annual profit climbs 65pc

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 27-Jul-16

Australian-listed Northern Star Resources has reported a 2015-16 net profit of $A151.4m, which is 65 per cent higher than previously. Most analysts had expected the gold producer to book a profit of about $A166m, while its full-year dividend of $A0.07 per share was also lower than some analysts had forecast. Northern Star Resources has also reported that its all-in sustaining cost of production was $US780 an ounce in 2015-16.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, RBC CAPITAL MARKETS

Dividends back at Newcrest

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Original article by Barry FitzGerald
The Australian – Page: 21 : 26-Jul-16

Australian-listed Newcrest Mining produced 598,037 ounces of gold during the June 2016 quarter, compared with 636,521 ounces in the March quarter. Full-year output was at the lower end of its guidance of between 2.4 million and 2.6 million ounces. However, the group slashed its net debt by 27 per cent to $A2.1bn in 2015-16, prompting some analysts to forecast that it will pay a dividend for the first time since 2013.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, CREDIT SUISSE (AUSTRALIA) LIMITED

Cost focus puts BHP on track to raise dividend

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Original article by Tess Ingram
The Australian Financial Review – Page: 18 : 18-May-16

Credit Suisse has upgraded its underlying earnings forecast for BHP Billiton in 2015-16 by 3.5 per cent to $A12bn, in response to the resources giant’s revised production costs for commodities such as iron ore and coal. Credit Suisse also suggests that BHP could lift its 2015-16 dividend by 10.8 per cent to $A0.25 per share. The firm has lifted its share price target for BHP stock from $A20 to $A21.5.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD

Companies need to come up with growth strategies

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 13-May-16

Many Australian-listed companies have prioritised dividend yields in recent years, rather than investing in growth strategies. However, Macquarie Securities’ Jason Todd believes that investors are poised to reward companies that pursue growth via strategies such as acquisitions and capital expenditure. He identifies a number of stocks that could benefit from a growth strategy, including Transurban Group, Wesfarmers, Amcor, Carsales.com, CSL and Orora.

CORPORATES
MACQUARIE SECURITIES PTY LTD, TRANSURBAN GROUP LIMITED – ASX TCL, WESFARMERS LIMITED – ASX WES, AMCOR LIMITED – ASX AMC, CARSALES.COM LIMITED – ASX CAR, CSL LIMITED – ASX CSL, ORORA LIMITED – ASX ORA, ASCIANO LIMITED – ASX AIO, ASX LIMITED – ASX ASX, WOOLWORTHS LIMITED – ASX WOW, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, SEEK LIMITED – ASX SEK, INCITEC PIVOT LIMITED – ASX IPL, TREASURY WINE ESTATES LIMITED – ASX TWE, RAMSAY HEALTH CARE LIMITED – ASX RHC

Orica shares dive 12pc as shareholders blast poor result

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Original article by Jared Lynch
The Australian Financial Review – Page: 1 & 11 : 10-May-16

Mining services group Orica has posted a 2015-16 interim net profit of $A149m, which is 33 per cent lower than previously. The explosives manufacturer’s revenue was 22 per cent lower at $A2.6bn, and its half-year dividend has been reduced from $A0.40 per share to just $A0.205 following a decision to abandon its progressive dividend policy. CEO Alberto Calderon has warned that a significant improvement in commodity markets is unlikely for some time.

CORPORATES
ORICA LIMITED – ASX ORI, STANDARD AND POOR’S CORPORATION, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN TAXATION OFFICE, MORGANS FINANCIAL LIMITED

ANZ dividend cut puts pressure on rivals to follow suit

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Original article by James Eyers
The Australian Financial Review – Page: 15 & 18 : 4-May-16

The ANZ Bank reported a 2015-16 interim cash profit of $A2.8bn on 3 May 2016, which was slightly below market expectations. The banking major reduced its half-year dividend from $A0.86 per share to $A0.80, prompting speculation that National Australia Bank will do so as well when its interim results are released on 5 May. Omkar Joshi of Watermark Funds Management has welcomed ANZ’s decision to reduce its dividend payout ratio, while Katana Asset Management’s Romano Sala Tenna says the other major banks should follow its example.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, KATANA ASSET MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD, INVESTORS MUTUAL LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION