DIVIDENDS – AUSTRALIA

BHP dividend not sacred

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Original article by Matthew Stevens, Amanda Saunders, Mark Ludlow
The Australian Financial Review – Page: 1 & 10 : 26-Nov-15

BHP Billiton’s progressive dividend policy is under scrutiny amid falling commodity prices and a downturn in its share price. BHP chairman Jac Nasser has indicated that the policy will be reviewed when the group’s 2015-16 interim results are released in February 2016. The progressive dividend policy was introduced in 2001 by former chairman Don Argus, who says it was never intended to be in place permanently. BHP has not reduced its dividend payout since 1988.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, ABERDEEN ASSET MANAGEMENT LIMITED, RIO TINTO LIMITED – ASX RIO, QUEENSLAND RESOURCES COUNCIL LIMITED, BILLITON PLC

Sober outlook for economy

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 25-Nov-15

Australia’s trend growth rate has usually been regarded as being around three per cent. However, the Treasury has confirmed that the December 2015 Budget update will be based on expectations of a potential growth rate of 2.75 per cent. Meanwhile, Reserve Bank governor Glenn Stevens forecasts that investment yields and global interest rates will remain low for some time. He has also warned Baby Boomers that they cannot expect to keep enjoying growth in dividends unless the companies they invest in are prepared to embrace more risk.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, UNITED STATES. CONGRESSIONAL BUDGET OFFICE, GREAT BRITAIN. DEPT OF THE TREASURY

BHP tipped to cut dividend to keep rating

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Original article by James Thomson, Peter Ker
The Australian Financial Review – Page: 11 : 24-Nov-15

BHP Billiton’s share price has fallen by 18.3 per cent in the last month, with the stock closing at $A20.07 on 23 November 2015. BHP’s progressive dividend policy has come under scrutiny following the downturn in iron ore and coal prices. Glyn Lawcock of UBS believes that unless prices rebound, the resources giant will have to reduce its dividend to ensure that its credit rating is not downgraded. UBS recently scaled back its 12-month share price target from $A28 to $A24.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ABERDEEN ASSET MANAGEMENT LIMITED, STANDARD AND POOR’S CORPORATION

BHP backs away from progressive dividend

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 20-Nov-15

BHP Billiton CEO Andrew Mackenzie has indicated that the resources group will review its progressive dividend policy in February 2016, when its financial results are released. However, chairman Jac Nasser says that BHP’s balance sheet is its top priority. The progressive dividend policy has come under scrutiny in the wake of a downturn in commodity prices and the tailings dam disaster at BHP’s jointly-owned iron ore project in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, GLENCORE PLC

Investor challenges BHP: cut dividend

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Original article by Sally Patten
The Australian Financial Review – Page: 24 : 19-Nov-15

BHP Billiton’s progressive dividend policy is likely to come under scrutiny at its 2015 annual meeting in Perth. Some fund managers do not expect BHP to back down on its policy despite growing pressure to do so, but Anton Tagliaferro of Investors Mutual says it was introduced during the resources boom and the downturn in commodities markets means it is no longer appropriate.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, INVESTORS MUTUAL LIMITED, HAMILTON WEALTH MANAGEMENT PTY LTD, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Pressure grows over BHP Billiton’s $US9bn dividend question

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Original article by Amanda Saunders
The Australian Financial Review – Page: 19 : 17-Nov-15

It is unwise for BHP Billiton to have a firm commitment to pay $US6.6 billion ($A9.2 billion) annually in dividends. Ross Barker, the MD of the Australian Foundation Investment Company (AFIC), says debt levels should be the primary consideration. A payout ratio should be made dependent on company results. AFIC has a large stake in BHP.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, ARGO INVESTMENTS LIMITED – ASX ARG, PENGANA CAPITAL LIMITED, SOUTH32 LIMITED – ASX S32

Uncertainty clouds fate of blue-chip dividends

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 13-Nov-15

Data from Morningstar shows that the average gross dividend yield for S&P/ASX 20 stocks has risen to a seven year-high of seven per cent. Meanwhile, three of the top-20 stocks have a 12-month gross yield in excess of 10 per cent, according to Bloomberg. ST Wong of Prime Value Asset Management says the top-20 stocks should be able to maintain their dividend payouts during the next year. However, some analysts believe that banks and resources groups may need to reduce their dividends.

CORPORATES
STANDARD AND POOR’S ASX 20 INDEX, MORNINGSTAR PTY LTD, BLOOMBERG LP, PRIME VALUE ASSET MANAGEMENT LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD

ANZ calms the market on dividends fears

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 13 & 17 : 30-Oct-15

The ANZ Bank has posted a cash profit of $A7.2bn for 2014-15, which is one per cent higher than previously. However, its Australian division’s cash profit rose by seven per cent. The group’s return on equity fell from 15.4 per cent to 14 per cent in 2015-16, and CEO Mike Smith says it will abandon its goal of lifting this to 16 per cent. He has also stressed that ANZ will not reduce its dividend payout in order to offset the cost of complying with new capital requirements.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, DEUTSCHE BANK AG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Yield reputation lives, even as growth slows

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Original article by Vesna Poljak, James Eyers
The Australian Financial Review – Page: 35 : 29-Oct-15

Australia’s top listed companies paid a total of $A79bn in dividends for the 2014-15 financial year. Brokers now expect the total payout for 2015-16 to be $A81bn, compared with a consensus forecast of $A85bn following the August 2015 reporting season. Dividend payouts in the banking sector remain strong, but a number of companies in the energy sector have reduced their dividends in the wake of the downturn in the crude oil price.

CORPORATES
WOODSIDE PARK STUD PTY LTD, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, MYER HOLDINGS LIMITED – ASX MYR, BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S ASX 200 INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, EUROPEAN CENTRAL BANK, BANK OF JAPAN

BHP’s London listing under fire

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 & 22 : 20-Oct-15

Nikko Asset Management’s head of Australian equities, Brad Potter, says it is no longer necessary for BHP Billiton to be listed on both the Australian and UK sharemarkets. He argues that rather than reducing BHP’s cost of capital, the dual listing has in fact increased it. Potter also believes that BHP’s progressive dividend policy is unsustainable. He adds that BHP may reconsider the dual listing if shareholders reject a proposal to make a payment to its London-listed company to finance a dividend for British shareholders.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, NIKKO ASSET MANAGEMENT GROUP, RIO TINTO LIMITED – ASX RIO, ARGO INVESTMENTS LIMITED – ASX ARG, SOUTH32 LIMITED – ASX S32, BRAMBLES LIMITED – ASX BXB, LONDON STOCK EXCHANGE