subscribe to our newsletter sign up
Investors cautioned as Aussie dividends plummet

Investors cautioned as Aussie dividends plummet

Australian dividend payouts are at their lowest level since 2010, largely due to steep cuts from mining and oil companies, according to one fund manager.

The Henderson Global Dividend Index found that total dividend payouts for 2016 in Australia were US$41.8 billion, down 10.1 per cent on the previous year.

The mining sector accounted for almost the entire decline, with dividend payouts down US$4.5 billion year-on-year. After adjusting for the stronger Australian dollar, the underlying fall in the total market was 12.2 per cent, said the report.

Big dividend cuts from "troubled retailer" Woolworths and oil producer Woodside Petroleum contributed to the fall, said Henderson.

"Together the banks account for half of the country's total dividends, while CBA alone is responsible for $1 in every $5 distributed," said the report.

"That means that Australian dividends are more reliant on the payouts from just a few large stocks than any other developed country."

Global dividends bucked the trend in Australia, rising marginally by 0.1 per cent to reach US$1.154 trillion.

US dividend growth slowed to rise 1.5 per cent to US$412.5 billion as lower special dividends took their toll, said the report.

Investors cautioned as Aussie dividends plummet
nestegg logo
Promoted Content
Recommended by Spike Native Network
Anonymous - A decline in cryptocurrency would even be beneficial for as money flows from one market to another.....
The Property Treasur... - Large amounts of this debt can never be repaid. Sell now or miss out forever.....
Dr Terry Dwyer, Dwye... - You don't need to go to Harvard and do a PhD in economics as I did to know that investors will likely cut and run in a rush to the exit. Pity the RBA.......
David Williams - So basically, the Reserve Bank is saying that the investment property market is an accident waiting to happen. Bring it on! First homebuyers have.......