August earning season to smash businesses, companies to slash dividends | Sky News Australia

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A large number of businesses are expected to take a hit during the August reporting season as the coronavirus pandemic sees a drop in guidance and minuscule dividend payments.

Market expectations forecast company earnings will be down roughly 20 per cent with the mining sector leading the charge due to skyrocketing iron ore prices.

AMP Capital’s Shane Oliver told Sky News he expects dividends to be cut by about 40 per cent. “It’s not just banking, it’s companies outside banking which will likely cut dividends,” he said. Image: Getty

 

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