rio tinto

It might just prove a double whammy for self-funded retirees. A looming US recession is not only bringing sharemarket bears out of hibernation but could prompt the Reserve Bank to cut interest rates earlier than many analysts expected.

Australian companies’ dividend payouts are down 24 per cent from a year ago, as higher interest rates and cash flow challenges darken the outlook. Payouts from miners decreased significantly, although the dividend picture remains positive for banks.

Demand for the metals needed for the energy transition and a falling iron ore price are encouraging Rio Tinto and BHP to expand investment and production, analysts say, with the big dividends shareholders have come to expect likely to take a hit.

Although more Australian companies are paying dividends in 2023, many have reduced payouts, with the year-to-date total slightly behind 2022’s figures, according to CommSec research. The big miners are leading the cuts, while energy producers are lifting dividends to reflect record high gas prices.

The world’s second-largest economy remains handicapped by zero-COVID policies, hampering iron ore demand. Sean Sequeira, Australian Eagle Asset Management chief investment officer, discusses the longer-term outlook amid increasing inflation pressures.

All about the Benjamin’s, market flat but dividends galore, Telstra holds, AMP cuts The ASX200 (ASX: XJO) finished flat on Thursday with Rio Tinto’s (ASX: RIO) massive dividend dragging the stock 6.9% and proving too much for a resilient communications sector (+2.3%) to overcome. It was a broadly positive day with more sectors gaining than losing and reporting season ultimately driving…

Market records continue, materials weaker, activity grows in IT sector  The ASX 200 (ASX: XJO) added another 0.2% on Tuesday, with the materials sector the biggest detractor, falling 0.1% under the weight of BHP Group (ASX: BHP) and Rio Tinto (ASX: RIO).  The IT sector continues to surge, adding 1.3%, along with the real estate sector which jumped 1% on somewhat…

Last year APRA ordered the big four banks to slash their dividends to conserve capital due to the COVID-19 pandemic; not that it was required, as boards had already decided to hoard as much capital as they could. Shareholders were dealt a rather large blow, especially self-retirees and super fund members. Banks have always been…

ASX joins the record breaking party, A2 Milk drained, Crowning the Star  The ASX200 (ASX:XJO) finally joined the global party hitting an all-time high of 7,172 points on Monday. The list of constituents trading at similar records also continues to grow, with both BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) up +3.1% and 4.6% respectively, hitting their own all-time highs today as…

Tech sell off weighs on ASX, Challenger downgrades earnings, Latitude finally lists The ASX200 (ASX:XJO) moved further from a record close as a weak global lead and a bevy of early earnings updates sent the market 0.7% lower. The only highlight was the telecommunications sector which added 0.2%, with IT and healthcare falling over 1% each as…