Here on the ASX, earnings season could accurately be described as 'earnings and dividends season'. That's because many ASX investors judge a company's success (and their own fortunes as shareholders) by the income they will receive from their company's activities over the earnings period in question.
We've just wrapped up the ASX's earnings season for the full 2024 financial year. The vast majority of ASX 200 shares, including most of the major blue chip stocks, have just given investors their report cards on how the 2024 financial year went. And that usually included the details of shareholders' next dividend payment (and associated franking credits of course).
According to CommSec, it was a very successful earning season on that front, with ASX shares set to pay out just under $35 billion in dividend payments to shareholders between August and October this year. That's up 5% over the same period last year.
If we include the dividends from some of the major banks over June and July, that total rises to approximately $45 billion. That represents a 7% increase over 2023.
With $45 billion in dividends up for grabs over these few months, many ASX investors will be getting a nice slice.
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Which ASX dividend shares dominated this earnings season?
But who's carrying the ASX team? Well, CommSec highlights that it's the ASX financial shares that are putting in the hard yards this season, with major dividend hikes from all four major banks.
That included a record dividend from Commonwealth Bank of Australia (ASX: CBA). CBA's final dividend of $2.50 a share no doubt delighted investors.
Insurance Australia Group Ltd (ASX: IAG) helped out the financial sector too. IAG dramatically boosted its final dividend from 15 cents per share to 27 cents per share this year.
Other dividend stars discussed included retailers like JB Hi-Fi Ltd (ASX: JBH) and Wesfarmers Ltd (ASX: WES), who impressed many investors with unexpectedly large payouts. As did other blue chip stocks like Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL) and CSL Ltd (ASX: CSL).
Meanwhile, it was a traditional ASX heavyweight sector when it came to dividend income that let investors down this season.
That sector was mining stocks.
It was a relatively dry season for mining giants like BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG) Ltd. Both of these miners revealed substantial dividend haircuts this earnings season.
Saying that, BHP will remain the largest dividend payer in raw terms. $5.54 billion from this miner alone is heading to shareholders' pockets.
Until next earnings (and dividends) season.
