BHP’s decision to slash its dividend by 40 per cent could mark the end of the resources sector income boom, analysts and fund managers warn.
“A combination of lower earnings and higher investment means lower free cash flows and lower dividends for investors,” said Scott Kelly, portfolio manager at DNR Capital, who agreed dividends declared by the sector are “going lower”.
Renaissance Asset Management’s Dermot Ryan expects BHP’s dividends to continue to fall as it transitions to a growth business with “much lower dividend distribution but potentially higher multiples”. and missed RBC’s estimate by 11 per cent. It is worth $US4.6 billion and equivalent to a payout ratio of 69 per cent, lower than the 78 per cent paid-out this time last year.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Shouldering a heavy burden: How much should a school bag weigh?The Sun-Herald tested items commonly found in a schoolbag to see if students are carrying too much on their backs every day.
Read more »
Parents shouldn't cover prams with dry cloth on hot days, study findsA world first study has brought into question how safe prams are on a hot day. It found using a popular cloth to block the sun may be putting babies and children in grave danger. 9News MORE:
Read more »
Parents shouldn't cover prams with dry cloth on hot days, study findsThe study by University of Sydney&x27;s James Smallcombe found using a dry muslin or flannelette cloth for sun shade seals in heat and can increases temperatures by nearly four degrees.
Read more »
Parents shouldn't cover prams with dry cloth on hot days, study findsThe study by University of Sydney&x27;s James Smallcombe found using a dry muslin or flannelette cloth for sun shade seals in heat and can increases temperatures by nearly four degrees.
Read more »
Are ice baths good for you? Dr Norman Swan investigates by taking the plungeThe sun is rising over Bronte Beach in Sydney's east, and Norman Swan is about to sit in an ice bath. So what's the evidence for and against cold water immersion?
Read more »
Australia’s ‘grubbiest’ firms say they can hit net zero and still growA group of the nation’s biggest carbon emitters say they can slash their emissions by 92 per cent by 2050, and crucially, do it without a heavy reliance on offsets.
Read more »