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.

Australian companies are on track to pay out more than $100 billion in dividends in the 2023 financial year as the high-octane 2022 earnings season draws to a close on sound footing in the face of slowing growth.

The 2021-22 ASX 200 dividend haul is up nearly 40 per cent on the $70 billion declared in the 2021 financial year.August’s annual reporting season reveals corporate Australia is in lean form as it grapples with the lingering effects of the pandemic, a change in government, and the shock of war in Ukraine, which has driven inflation to a two-decade high.

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.ANZ estimated $12.

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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