Investors are bracing for the busiest week of reporting season so far, punctuated by a hotly anticipated result from BHP which some fund managers warn could disappoint shareholders.
However, shareholders will likely be underwhelmed as BHP’s full-year distribution will mask a significantly lower payout for the second half, according to Dermot Ryan, portfolio manager of the Renaissance Equity Income Fund. Mr Ryan believes BHP’s pivot towards growth and investment, highlighted by its $8.4 billion bid for OZ Minerals, marks a new era of lower payouts and new mines. It means this week’s result will likely represent a peak annual distribution to shareholders.more than halved its interim dividendSantos, CSL, JB Hi-Fi and Transurban are among the other large cap results that will be closely followed this week.
Mr Schellbach added that while rising input costs are featuring as the biggest issue facing corporate Australia, businesses are managing those pressures well.“We expect cost impacts from continued supply chain and inflationary pressures together with wage inflation challenges to continue,” said Susan Panuccio, News Corp’s chief financial officer.Mr Schellback believes the local market’s relief rally, sparked by investors pricing in a soft economic landing, looks to have “run ahead of itself”.