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The World's Top-Yielding Developed Market Is Set to Keep Paying Out

Australia’s benchmark index is among the developed world’s worst performers so far this year, yet investors are expected to reap rewards in other ways.

Australia’s benchmark index is among the developed world’s worst performers so far this year, yet investors are expected to reap rewards in other ways.

Twice as many companies are seen increasing payouts than those expected to maintain or cut dividends compared with a year earlier, according to data compiled by Bloomberg of the 87 companies expected to declare a dividend in February or March.

Follow the Money

More companies seen lifting, or cutting dividends this reporting season

Source: Data compiled by Bloomberg

Note: Does not include special dividends

Oil Search Ltd., the Port Moresby-based company with a stake in Exxon Mobil Corp.’s gas project in Papua New Guinea, leads companies that are expected to raise payouts with a dividend about 60 percent higher than the same time last year, after reporting a 17 percent gain in revenue in 2017.

Dishing Out The Dollars

Oil Search seen having the largest year-on-year increase in dividends

Source: Data compiled by Bloomberg

Note: Does not include special dividends

BlueScope Steel Ltd.’s dividend may rise by about 50 percent after its profit forecast was increased amid higher prices and volumes for Australian steel products. Iluka Resources Ltd. is expected to resume paying a final dividend of A$0.15 this year after not returning cash to holders last February.

Commonwealth Bank of Australia, the nation’s second-largest company, is seen nudging its payout slightly higher even amid slowing earnings momentum and higher litigation and compliance costs. The banking sector is facing a public inquiry following a string of scandals.

Aussie Stocks May Not Be Down Under for Much Longer: Macro View

TPG Telecom Ltd. leads those that are holding onto more money this season with an expected 75 percent cut in its dividend after flagging plans to slash payouts in September to build new wireless networks in Australia and Singapore.

The Wallet's Closed

TPG Telecom seen keeping more cash as it expands mobile network

Source: Data compiled by Bloomberg

Note: Does not include special dividends

Telstra Corp.’s payout is seen falling 29 percent after they changed their dividend policy in August amid increased competition.  

Read more on how dividend sanctity Down Under took a hit last year 

Myer Holdings Ltd. is expected to lower its payout from a year earlier as it struggles to meet targets. The department store chain last month said sales in the first two weeks of December had fallen 5 percent year on year.

Simply the Best

Australia is the world's top-yielding developed market

Source: Data compiled by Bloomberg

Note: Dividend yield of the country's primary index as of 5:18 p.m. in Sydney, Jan. 30

These are the 5 largest companies by market cap seen raising dividends:

  • Commonwealth Bank (CBA) BDVD est. A$2.00 vs A$1.99 yr ago
  • Rio Tinto (RIO) BDVD est. A$2.23 vs A$1.64 yr ago
  • CSL (CSL) BDVD est. $0.72 vs $0.64 yr ago
  • Wesfarmers (WES) BDVD est. A$1.07 vs A$1.03 yr ago
  • Woolworths (WOW) BDVD est. A$0.47 vs. A$0.34 yr ago

These are the 5 largest companies by market cap seen cutting dividends: 

  • Telstra (TLS) BDVD est. A$0.11 vs A$0.115 yr ago
  • Fortescue Metals (FMG) BDVD est. A$0.14 vs A$0.20 yr ago
  • Cimic (CIM) BDVD est. A$0.60 vs A$0.62 yr ago
  • AGL Energy (AGL) BDVD est. A$0.35 vs A$0.41 yr ago
  • ASX (ASX) BDVD est. A$1.014 vs A$1.02

These are the 5 largest companies by market cap seen maintaining their payout: 

  • BHP Billiton (BHP) BDVD est. $0.40 vs $0.40 yr ago
  • Treasury Wine (TWE) BDVD est. A$0.13 vs A$0.13 yr ago
  • LendLease (LLC) BDVD est. A$0.33 vs A$0.33 yr ago
  • Boral (BLD) BDVD est. A$0.12 vs A$0.12 yr ago
  • Seek (SEK) BDVD est. A$0.23 vs A$0.23 yr ago
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