K2 Asset Management has trimmed its exposure to banking stocks and started to take small positions in larger resources stocks. David Poppenbeek said, BHP have been very deliberate in communicating their disciplines to the market and following the capex binges of the past three years shareholders are now likely to benefit from the significant cash flow harvesting that is about to commence. The Company is sitting on well over $10 billion of surplus franking and with the ability to sweat the assets harder BHP is likely to lift its payout ratio to shareholders in a tax efficient manner. Poppenbeek says that K2 can see BHP delivering 15% dividend per share growth for the next three years and that now is the time for shareholders to reap the benefits of recent investments.
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