Australian dividends drop 50% in Q1

Australian dividends drop 50% in Q1

Dividends paid out by Australian companies fell to US$2.8 billion in the first quarter of 2016 on a headline basis, down 49.8 per cent, according to Henderson Global Investors.


The Henderson Global Dividend Index found that a number of 'one-off' events exaggerated the fall in Australian dividends in the first quarter.

The biggest contributor to the fall was BHP Billiton, which cut more than US$2 billion from its dividend payment, said the report.

Woodside Petroleum also "exacerbated" the plunge in Australian dividends by moving its payment to the second quarter of 2016.

On an underlying basis, Australian dividends were down 29.7 per cent.

Globally, dividends fared much better, rising 2.2 per cent to US$218.4 billion in the first quarter of 2016, according to the report – an increase of US$4.7 billion year-on-year.

"Japan, North America, and Europe led the way, while Australia, the UK, and emerging markets lagged behind," said the report.

"Exchange rates have been much more stable recently and so made a much smaller impact when translating global dividends into US dollars.

"On an underlying basis, which adjusts for exchange rate movements, timing effects, one-off special dividends, and index changes, growth was 3.1 per cent," said the report.

Looking forward to the rest of 2016, Henderson said it expects global dividends to rise 3.9 per cent to $1.18 trillion in 2016 – an underlying increase of 3.3 per cent.

Read more:

US Fed 'edging' towards a rate hike

Medcraft to step down as IOSCO chair

EM equity inflows hit 3-year high: BlackRock

Credit Suisse fined $74,000 by ASIC

CFS unveils 'Millennials' investment option

 

Australian dividends drop 50% in Q1
investordaily image
ID logo
promoted stories

Appointments

investordaily image

AMP names incoming chief risk officer

Jessica Yun

investordaily image

Antares Equities hires new director

Staff Reporter

Brad Fox

Former AFA CEO appointed to boutique board

Staff Reporter

Analysis

investordaily image

Warning lights flashing on Aussie equities

Roy Maslen

investordaily image

What’s in store for the economy in 2018?

Frank Uhlenbruch

ST Wong

Busting common passive investing myths

ST Wong