Australian companies to raise dividends
By: Brendon Lau
It’s been a nail-biter of a reporting season here in the first half of 2018. Companies across Australia have been surprising the market with earnings news. But the real action, in my opinion, is what companies are doing with dividends.
Data from Macquarie Group Ltd (ASX: MQG) shows that the ratio of companies (under its coverage) reporting better-than-forecast dividends to less-than-expected dividends is 1.5 to 1.
In layman’s terms, there are 50% more beats than misses. I am not sure if that is a record but that’s a darn pretty noteworthy figure.
What’s it all mean? SMSF and income seeking investors should rejoice! But even growth-minded investors should sit up and notice as the dividend trend is telling.
5 ASX companies raising dividends today
A lift in dividends is effectively a sign that management is bullish about the company’s near to medium-term outlook.
There have been a number of large caps that have lifted their dividend payments even as they posted worse-than-expected results. This includes fast food chain Domino’s Pizza Enterprises Ltd. ASX: DMP, wealth manager AMP Limited ASX: AMP, and mining giant BHP Billiton Limited, ASX: BHP.
However, the companies on Macquarie’s list that have delivered the biggest dividend surprises so far include mining services group Mineral Resources Limited ASX: MIN, insurer Suncorp Group Ltd. ASX: SUN, too.
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