DIVIDENDS – AUSTRALIA

Westpac to stick with dividend lift

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Original article by James Eyers
The Australian Financial Review – Page: 27 & 30 : 15-Oct-15

Westpac’s unaudited preliminary financial accounts for 2014-15 show that it has posted a full-year cash profit of $A7.82bn, which is three per cent higher than previously. Investors will receive a fully franked final dividend of $A0.94 per share, compared with $A0.92 in 2013-14, while Westpac also intends to pay a higher dividend in 2015-16. Westpac shares have been placed in a trading halt until 19 October 2015 due to the group’s $A3.5bn capital raising.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks shares set to rise as investors focus on dividends

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 8-Oct-15

Australia’s S&P/ASX 200 Banks Index has shed 20 per cent since April 2015, and Macquarie says the downturn in bank share prices has created a buying opportunity for investors. Macquarie expects the forthcoming dividend payouts by National Australia Bank, Westpac and the ANZ Bank will drive investor activity in the banking sector, which in turn should boost the share prices of bank stocks.

CORPORATES
STANDARD AND POOR’S ASX 200 BANKS INDEX, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF QUEENSLAND LIMITED – ASX BOQ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Dividends seek caring home

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 23-Sep-15

Australian-listed companies are poised to pay investors some $A18bn worth of dividends. However, UBS Wealth Management’s David Sokulsky says that in the near-term investors may be better off retaining their dividends in cash rather than reinvesting in shares. He says investors should wait until the US Federal Reserve increases the cash rate, as bank stocks may offer value when the central bank finally tightens monetary policy. He also says equity markets may have further downside.

CORPORATES
UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, AMP CAPITAL INVESTORS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, EUROPEAN CENTRAL BANK, SUNCORP GROUP LIMITED – ASX SUN, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Top sectors for feeding the dividend beast cited

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 15-Sep-15

Beulah Capital’s Peter Mavromatis does not expect further increases in Australian companies’ dividend payout ratios. He forecasts that companies will instead pursue mergers and acquisitions as investors continue to seek high dividend yields. Mavromatis believes that local and offshore companies will target sectors such as IT, property, transport and logistics. Gerald Moser of Credit Suisse Private Bank suggests that the healthcare and IT sectors are likely to experience more consolidation.

CORPORATES
BEULAH CAPITAL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GRAINCORP LIMITED – ASX GNC, TRANSURBAN GROUP LIMITED – ASX TCL, OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, 3P LEARNING LIMITED – ASX 3PL, LEARNOSITY PTY LTD

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC

Rio should unveil ‘another buyback’

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 5-Aug-15

Most analysts expect Rio Tinto to post 2015 interim underlying earnings of $US2.4bn (A$3.2bn), compared with $US5.1bn previously. Rio Tinto commenced a $US2bn share buyback in February 2015, and Paul Young of Deutsche Bank says it should use cost and capital expenditure savings to finance another buyback in early 2016. The majority of analysts also expect Rio Tinto to abandon its progressive dividend, although Young forecasts that its existing policy will be retained.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC

Cheap debt to buoy Rio, BHP dividends, but for limited time only

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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

Mirrabooka forks out 7c a share special dividend

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 : 14-Jul-15

Mirrabooka Investments has reported a 2014-15 profit of $A7.1m, compared with $A7.8m previously. The listed investment company has posted a return of 6.8 per cent for the financial year, and a five-year return of 15.5 per cent. Stocks in its portfolio that performed well in 2014-15 include Toll Holdings, Ansell, Nufarm and Blackmores. Shareholders will receive a final dividend of $A0.065 per share, plus a special dividend of $A0.07 per share.

CORPORATES
MIRRABOOKA INVESTMENTS LIMITED – ASX MIR, TOLL HOLDINGS LIMITED, ANSELL LIMITED – ASX ANN, NUFARM LIMITED – ASX NUF, BLACKMORES LIMITED – ASX BKL, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, COVER-MORE GROUP LIMITED – ASX CVO, ISELECT LIMITED – ASX ISU, VEDA GROUP LIMITED – ASX VED, AMA GROUP LIMITED – ASX AMA, SIMS METAL MANAGEMENT LIMITED – ASX SGM, JAPAN POST COMPANY LIMITED, CITADEL GROUP, STANDARD AND POOR’S ASX MIDCAP 50 INDEX, STANDARD AND POOR’S ASX SMALL ORDINARIES GROSS ACCUMULATION INDEX

BHP, Rio investors not tempted by rising yield

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 14-Jul-15

The share prices of BHP Billiton and Rio Tinto have fallen sharply in the last 12 months, although they continue to offer strong dividend yields. However, institutional investors such as the Australian Foundation Investment Company and Argo Investments are not capitalising on the rising yield to increase their shareholdings. Michelle Lopez of Aberdeen Asset Management says a key issue for investors is whether BHP can sustain its progressive dividend policy.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, ARGO INVESTMENTS LIMITED – ASX ARG, ABERDEEN ASSET MANAGEMENT LIMITED, CITIGROUP PTY LTD

Metcash is crunched in retail wars

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 5-Jun-15

Australian-listed Metcash has indicated that its financial accounts for 2014-15 will include asset write-downs totalling $A640m. The grocery group has also advised that dividends will be put on hold for 18 months. The revelations prompted a sharp fall in Metcash’s share price, which finished $A0.245 lower at $A1.14 on 4 June 2015. Metcash expects its full-year underlying EBIT to be within its forecast range of $A315m to $A330m.

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, ALLAN GRAY AUSTRALIA PTY LTD, NIKKO ASSET MANAGEMENT GROUP, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL, McPHERSON’S LIMITED – ASX MCP