Top flight earnings season sets up $102b dividend windfall

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More than $40 billion in dividends will be paid to Australian shareholders over the next month alone, much of which will be redeployed into the economy.

The $102 billion windfall extends to households and hedge funds, and builds on the $96 billion of capital earmarked for return in financial 2022, according to MST Financial estimates. A big income day awaits next week, when the newly enlarged Woodside Energy reports half-year profit on Tuesday, its first result since merging with BHP petroleum.

Europe’s energy supply crunch led to bumper profits for the energy sector but headaches for other corners of the market as prices for coal, oil and gas rocketed, fanning inflationary pressures and the cost of doing business. Australia’s largest miner reported its biggest profit in Australian dollar terms and a monster final dividend worth $US1.75 a share as its coal and iron ore assets shone.The convention for both BHP and Rio to declare their dividends in US dollars, the currency in which their income is denominated, means heightened demand for the Australian currency as those dividends are converted for payment.

The Australian economy’s net income position has been enriched by the trend for a growing allocation to offshore equities through superannuation, which counts the proceeds of foreign income distributed back to Australian resident owners.

 

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Top flight earnings season sets up $102b dividend windfallMore than $40 billion in dividends will be paid to Australian shareholders over the next month alone, much of which will be redeployed into the economy. franking tax refund is being rorted on industrial scale
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