With earnings season now all but wrapped up, we take a look at five top S&P/ASX 200 Index (ASX: XJO) shares that were able to increase their dividends and five that had little choice but to cut their passive income payouts.
Before diving into the specific ASX 200 shares, it's worth noting that the total amount of dividend payments from ASX companies is down from last year, which itself was down from 2022.
But it's not all bad news.
According to Rob Talevski, CEO of Webull Securities Australia:
Across the entire market, the ASX is yielding around 3.45% on average, by way of dividends.
However, if we look at the ASX 50, there are plenty of companies with reliable earnings paying fully franked dividends at a yield of well over 5%, which is worth significantly more to those who can take full advantage of the tax credits.
So, which companies are contributing the year on year decline in ASX dividends?
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Five ASX 200 shares cutting dividends
With commodity prices like iron ore, coal, and oil under pressure over the past year, it likely won't come as a surprise that these five ASX 200 shares slashed their dividend payouts.
Fortescue Ltd (ASX: FMG) reported a half-year net profit after tax (NPAT) of US$1.6 billion, down 53% from 1H FY 2024. Fortescue declared a fully franked interim dividend of 50 Aussie cents a share, down 53.7% from the $1.08 a share in H1 FY 2024.
It was a similar picture with that passive income from Rio Tinto Ltd (ASX: RIO),
While Rio Tinto's full-year profit after tax increased by 15% to US$11.55 billion, the fully franked final dividend of AU$3.536 a share was down 10% from last year's final dividend.
BHP Group Ltd (ASX: BHP) joins the dividend-cutting list, with the miner's half-year underlying attributable profit down 23% to US$5.1 billion. BHP's fully franked interim dividend of 78.5 Aussie cents per share was down 28.4%.
We saw similar cuts in passive income payments from the big energy companies.
ASX 200 share Woodside Energy Group Ltd (ASX: WDS) reported a full-year underlying NPAT of $2.88 billion, down 13% from 2023. This saw management reduce the fully franked final dividend by 10% to 83.1 cents a share.
Rival Santos Ltd (ASX: STO) meanwhile reported a 10.7% decline in its full-year profit after tax to US$1.26 billion. Santos' final dividend of 16.6 Aussie cents per share was down 39.2%.
Which brings us to…
Five ASX companies increasing their passive income payments
Up first, we have Commonwealth Bank of Australia (ASX: CBA).
With cash net profit at Australia's biggest bank up 2% for the half year to $5.13 billion, CBA declared a fully franked interim dividend of $2.25 a share, up 5%.
And Qantas Airways Ltd (ASX: QAN) delighted passive income investors by paying its first dividend since 2019, shortly before COVID-19 brought air travel to a grinding halt.
Qantas reported an 11% year on year increase in profit before tax to $1.39 billion. The ASX 200 share declared a fully franked interim dividend of 26.4 cents a share.
Telstra Group Ltd (ASX: TLS) also reported its half-year results in February. With after tax profits of $1.1 billion up 7.1% year on year, the fully franked Telstra dividend was boosted 5.6% to 9.5 cents per share.
Wesfarmers Ltd (ASX: WES) also had a strong six months, reporting a 2.9% increase in NPAT to $1.47 billion. The fully franked Wesfarmers interim dividend of 95 cents per share was up 4.4%.
And rounding off our list of ASX 200 shares boosting their passive income payouts, we have CSL Ltd (ASX: CSL).
The biotech giant reported a 7% boost in half-year NPAT in constant currency to US$2.04 billion. CSL increased its unfranked interim dividend by 15.2% to AU$2.073 per share.
