That’s the prediction of some market experts like Bell Potter strategist Richard Coppleson. He calculates that investors will reap more than $36 billion in dividends by April this year, according to reporting in the Australian Financial Review.
The collective value of dividends declared in the February reporting season was 40% higher than the same time last year.
Dividend windfall to support ASX share prices
“The dividends to be paid in March and April will be positive for retail sales and also the market, as some of this cash will be reinvested back into stocks in late March through to mid-April,” Coppleson told the AFR.
“If we see the US market re-test its January lows, which is still a big chance, many institutional investors will have cash flying in from mid- to late-March that they will be able to throw at the market.”
This month should see $26 billion in dividends hit shareholders’ bank accounts. There is a further $10.3 billion that will flow into shareholders’ pockets in April.
Cash to calm the volatility
Russia’s attack on Ukraine, rising interest rates, and fears of stagflation have sent ASX shares on a rollercoaster ride.
Most of the dividend support is coming from resources shares thanks to strong commodity prices.
Top dividend-paying ASX shares
BHP Group Ltd (ASX: BHP) is the reigning dividend champ with a record interim payout of US$1.50 (A$2.08) a share. BHP alone accounts for nearly 29% of the total value of dividend payments in the latest reporting season.
The next best dividend-payer, and the only non-resource ASX share in the top 5 dividend payers, is Commonwealth Bank of Australia (ASX: CBA). Australia’s largest bank declared a $1.75 per share interim dividend. This totals $3 billion in dividends.
Fortescue Metals Group Limited (ASX: FMG) is in third spot despite cutting its interim dividend by 41%. Fortescue is paying out $2.6 billion. Rio Tinto Limited (ASX: RIO) is in fourth position with its $2.5 billion cash splash.
Woodside Petroleum Limited (ASX: WPL) rounds up the top five, forking out $1.4 billion in dividends.
Given the positive earnings outlook coming out of the February reporting season, plus the ongoing surge in commodity prices, the ASX dividend party may last a while longer yet.
The post Record $36bn in dividends could help ASX share market recovery appeared first on The Motley Fool Australia.
These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)
Motley Fool Australia’s Dividend experts recently released a FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.
Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.
Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.
Returns As of 16th August 2021
- Here are the top 10 ASX shares today
- 3 under-the-radar commodity prices soaring since the Ukraine crisis
- Here are the 3 most heavily traded ASX 200 shares this Wednesday
- Here’s why the BHP (ASX:BHP) boss is still optimistic about China
- Want the dividends from these 5 ASX shares? You’d better be quick!
Motley Fool contributor Brendon Lau owns BHP Billiton Limited, Commonwealth Bank of Australia, Fortescue Metals Group Limited, and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/XdxVH5l