ASX dividends to remain low as companies hoard cash

Investors are concerned that Australian companies are “hoarding” profits rather than using the money to grow their businesses or return it to shareholders, as boards fear an economic slowdown and a hit to profits.

The ASX recorded one of the deepest payout declines in the world in the second quarter of 2024, with the headline rate falling 19 per cent from a year earlier to just A$7.1 billion ($10.4 billion), Janus Henderson said. That was despite global dividends rising to a record A$606.1 billion.

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