Which Australian firm was a world-leading dividend payer?
Commonwealth Bank of Australia has retained its spot as one of the world’s biggest dividend payers, although it has fallen from 15th place in 2018 to 20th as the banking sector remains ‘vulnerable to cuts’.
This was the only Australian company to feature on the top 20 list, comprised by Janus Henderson, which was topped by UK resources firm Royal Dutch Shell.
It was a notable inclusion as the banking sector had been ‘vulnerable to cuts for some time’ as a result of low dividend cover and subdued profits with both ANZ and National Australia Bank (NAB) cutting dividends.
CommBank had consistently appeared on the table every year since 2013 but the only other bank to feature in recent years was Westpac which was ranked 10th in 2013.
According to the dividend index, Australia had a ‘difficult year’ in 2019 with underlying dividends falling 3.3% as two-fifths of companies cut their dividends.
Headline dividends rose 3.2% to US $55.5 billion ($82.8 billion), thanks to special dividends paid by Rio Tinto and BHP Billiton, the highest figure since 2013.
BHP Billiton and Rio Tinto, which are dual-listed on the Australian and UK stock exchanges, were in sixth and seventh place respectively. This was a new entry for Rio Tinto and a rise from 17th in 2018 to sixth this year for BHP Billiton.
AUTHOR
Laura Dew
Recommended for you
Infrastructure assets are well-positioned to hedge against global uncertainty and can enhance the diversification of traditional portfolios with their evergreen characteristics, an investment chief believes.
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
