$22 billion in dividends to be paid out: Commsec
Published 24-SEP-2015 09:16 A.M.
|
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
The All Ordinaries may have dipped perilously close to the 5000 point mark and the ASX 200 gone below it yesterday – but dividends are shaping as a bright spot for investors over the next two months.
Commsec has predicted in a report that around $22 billion worth of dividends will be paid out during the next two months, with BHP Billiton leading the way with an estimated dividend payout worth $4.6 billion until 1 December.
The report’s author, chief economist Craig James, wrote that ASX-listed companies were increasingly using dividends as more of a marketing tool than anything else.
“Companies have been facing tough competition from other companies and other asset classes to retain the affection of investors,” he wrote.
“And the lure of attractive and sustainable dividends has been important in this regard.”
Chart from Commsec showing the flow of dividends in the coming months
Calling the previous reporting season “unremarkable”, James said companies risked “staying on the treadmill” if they focused on dividends at the expense of further expansion.
“The main criticism is that too many companies are comfortable staying on the threadmill – paying out dividends rather than expanding, investing, looking for merger or acquisition opportunities or embarking on major exercises to boost productivity or efficiency.”
His comments on mergers and acquisitions comes off the back of analysis from The Australian, leveraging data from Thomson Reuters Deals Intelligence, tipping M&A activity to rise due to ongoing weakness of the Australian dollar against the greenback.
“The strong shape of corporate Australia, growing population, proximity of Australia to the fast growing Asia region and weaker Aussie dollar won’t be lost on foreign companies looking for takeover targets,” James wrote.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.