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
Outflows from an Australian private markets fund manager have caused FUM at Pacific Current to decline by $1 billion in the last quarter.
Former RIAA chief executive Simon O’Connor has joined the ethical advisory panel at U Ethical Investors.
Financial services leaders are “all cashed up with nowhere to grow” when it comes to M&A activity, according to Deloitte, with 90 per cent saying they have strong balance sheets ready for an acquisition.
As fund managers are urged to diversify their product ranges, they are finding a faster way to do this is via an acquisition of existing firms but experts say it is not without potential culture clashes.
