Australian Q1 dividends dented by BHP cuts
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.
AUTHOR
Laura Dew
Recommended for you
State Street will restrict its membership of global climate alliance Net Zero Asset Managers after the organisation dropped its flagship 2050 goals amid ESG backlash from the US.
Betashares has launched a global shares and a global infrastructure ETF as part of the firm’s strategic expansion strategy to support financial advisers in building more diversified portfolios.
Global asset manager Janus Henderson could be acquired after receiving a non-binding acquisition proposal jointly from a private investment firm and venture capital firm.
Investment manager Salter Brothers has partnered with private equity firm Kilara Capital to launch an Australian sustainable investment platform focusing on decarbonisation.
