Shareholders set to receive $24 billion in dividends

If there’s one thing likely to boost our sharemarket over the next few weeks, it’s the estimated $24 billion of dividends expected to be paid to shareholders, according to Commsec.

Much of that is likely to find its way back into the market at some stage – although a large portion will automatically be reinvested in new shares through the dividend reinvestment plans (DRPs) run by many companies.

Commsec says a record 92.1% of companies reporting their results in the recent reporting season issued a dividend, and 82% of those companies lifted or maintained their dividend.

That $24 billion is expected to flow to shareholders from late August to early December 2016. The three weeks from September 19 will see an estimated $16.3 billion paid out in dividends, with $4.5 billion in the first week, $7 billion in the week ending September 30 and another $4.8 billion in the first week of October.

Among those still to pay out dividends include Commonwealth Bank of Australia (ASX: CBA) which will pay shareholders a final dividend of $2.22 – worth more than $3.8 billion alone – on September 29. Wesfarmers Ltd (ASX: WES) will pay its shareholders a final fully franked dividend of 95 cents on October 5 – worth more than $1 billion, while BHP Billiton Limited (ASX: BHP) will pay shareholders a dividend of just 18.52 cents (down from 87.78 cents last year) – but still worth close to $600 million.

Suncorp Group Ltd (ASX: SUN) will pay out 38 cents (fully franked) on September 21, and Woolworths Limited (ASX: WOW) will pay out 33 cents, also fully franked to shareholders on October 7. Those payouts are worth $488 million and $421 million respectively.

There are plenty more companies paying out dividends of course, but suffice to say, plenty of investors will be rubbing their hands together in the next few weeks as they receive their dividends into their accounts.


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Motley Fool writer/analyst Mike King owns shares in Wesfarmers and Woolworths. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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