Australian Q1 dividends dented by BHP cuts

Janus Henderson dividends equities australian equities

27 May 2024
| By Laura Dew |
image
image
expand image

Australia contributed three-quarters of all APAC dividends in the first quarter of 2024, according to Janus Henderson, but the country recorded no quarterly dividend growth. 

According to the firm’s quarterly Global Dividend Index, Australia paid out US$15.5 billion ($23.4 billion) but was weaker overall which depressed the wider APAC payouts of US$21.5 billion. 

In the first quarter of 2023, Australian dividends were US$15.7 billion and APAC dividends were US$20.3 billion.

Janus Henderson also flagged a dividend cut of a fifth by resources firm BHP “made a significant impact” and that the APAC region would have seen double-digit growth otherwise.

Overall, global Q1 dividends were US$339.2 billion, up 2.4 per cent on a headline basis. 

“It was a mixed picture – BHP was the only company in our index to make a cut, but real estate group Goodman and retailer Coles made no increase, while Commonwealth Bank, a very large Q1 payer, only increased its dividend by 2.3 per cent. Even with a large increase from Fortescue Metals, there was no growth in Australia in Q1 – the underlying picture was a 0.2 per cent decline.

“A big cut from Woodside Energy in April means the second quarter will likely show a decline too.”

Commonwealth Bank of Australia rose to ninth in the world for global dividend payments, up from 10th in the first quarter of 2023, and banks overall accounted for a quarter of global growth. 

Matt Gaden, head of Australia at Janus Henderson Investors, said: “The resilience of the Australian share market was evident over the quarter as it recorded healthy dividend growth despite the pressures on commodity prices and the mining sector.

“The big four banks remain dividend darlings, showcasing the important role that they play for Australian investors.

“Overall, global economies continue to face inflationary headwinds and the cost of capital is tipped to stay higher for longer. But with a wave of government money coming into renewable energies and new opportunities are unlocked by AI technology, dividend investors are urged to remain aware of how these forces will impact global dividends over the medium to long term.”

The firm’s 2024 forecast was unchanged with the company expecting to see $1.7 trillion in dividends, up 3.9 per cent on a headline basis.  

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

JOHN GILLIES

tHOSE 989 WHO ARE CEASED WILL GO ON TO LIVE A LONG AND HEALTHY LIFE JG...

4 days 2 hours ago
Chris Cornish

What a sticth-up. Looks like Labor Senator Jess Walsh follows Stephen Jones who follows what the industry super funds ...

3 days 23 hours ago
Peter Swan

This report is a blatant display of far-left factional partisanship, treating superannuation funds as state property and...

4 days ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

2 weeks 5 days ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

1 week 5 days ago

ASIC has obtained interim orders from the Federal Court to freeze the assets of a registered managed fund and prevent its former director from leaving Australia. ...

5 days 23 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND