The top 20 dividend payers

So ...why the rise??

4 of the 6 biggest increases in dividends (again, like last year) came from miners...

The biggest $ increases in dividend came from

1. BHP alone increased its div by +$638m.
2. RIO +$437m
3. Fortescue +$373m
4. Origin +$264m (from no div last time)
5. Brambles thanks to their special dividend was up +$269m

Plus, we had Coles +473m - but that's just a Wesfarmers contra

• Alone these 6 added +$2.44b in dividends which was more than the +$1.94m overall increase in divs paid by 20 biggest payers.

The biggest 20 this year vs what they paid at the same time last year - ranked biggest $ increase

Source: Coppo Report

This chart shows how ASX (special div from IRESS sale) and Brambles (special div from sale of IFCO) had the biggest % increase over Sept / Oct last year.

This shows the $ increases or decreases paid by the biggest 20 dividend payers.

BHP is the standout (again as they were last year as well)

RIO & BHP paid record dividends this year

RIO

• RIO in 2017 / 2018 F/Y paid 2 dividends $2.28 + $1.70 = $$3.99 with a payout of $1.48b
• This F/Y 2018/2019 they paid 4 dividends $3.38 + $2.50 +0.88c + $2.19 = $8.97 with a payout of $3.3b
• RIO paid an extra $1,847,914,313 in dividends on last year

BHP

• BHP in 2017 / 2018 F/Y paid 2 dividends 88c + 70.5c = $1.59 with a payout of $4.68b
• This F/Y 2018/2019 they paid 3 dividends $1.41 + 78c +$1.15 = $3.34 with a payout of $9.85b
• BHP paid an extra $5,161,653,058 in dividends

BHP / RIO - would you BUY them for income ??

Normally no. But...

• Given the Banks divs are not going up (and possibly down as we saw with NAB recently cutting div from 99c to 83c) & Telstra has disappointed retail income lovers, cutting its div every year - many got onto the big miners a few years ago & it’s been a great trade..
• Now they are cyclical, so those who bought a few years ago for income know that the cycle can be for 3 to 4 years before the cycle turns down (world growth slows / commodity prices drop heavily) - so for now the window remains open - until the coming US recession becomes more obvious (BUT - it’s still looks like not until 2022 at this stage)
• But if world growth looks like it will take a hit in the near term from trade War - then this strategy needs to be reconsidered - very quickly.
• Many think we have seen the best of dividends (specials) from these 2 ...

Both stocks dividend paid in 2018 & again in 2019

But looking at just BHP & RIO (given they have a good dividend history to look at.. we see that in the last 19 years

BHP

• Has cut its dividend just 4 times, one was massive (when commodity prices were collapsing) while the other 3 times weren’t too bad.
• But after they have cut dividends & then increased after - they kept increasing (since 2004) 6 consecutive years & (2011) 5 consecutive years.
• History shows that they are unlikely to be cutting any time soon (Unless China blows up or US slips into a recession in 2021)

RIO

• Has cut its div 5 times in last 19 years - when they cut they are bigger cuts but again when they go back up they have 2 years twice & 5 years more recently (2011 to 2015).

How BHP & RIO have (mostly) increased their dividends in the last 19 years (the last 2 have been boosted by huge special divs)

Charts showing BHP dividends each year increasing or decreasing on previous year

Charts showing RIO dividends each year increasing or decreasing on previous year

Dollar amount of dividends being PAID - each day - this week and NEXT week