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Dividends down, but still high

17 November 2014  |  Investing

UpDIY super investors have heavily targeted high dividend paying stocks on the ASX, especially the banks. Business Spectator is reporting that dividend payouts are down on last year, although that comparison is affected by some one off factors last year.

What it underlines is just how much the ASX is a yield play and not a capital gain play, unlike the US market:


Australian companies that recently paid out dividends delivered less than they did a year ago.

The Henderson Global Dividend Index shows Australian firms paid their shareholders $US17.5 billion ($18.93bn) in the three months to September -- the busiest period of the year for dividends.

That was less than a year earlier, due mainly to the impact of shopping centre giant Westfield's restructure, and Westpac's one-off special dividend in 2013.

Excluding those one-offs, total dividends actually rose 7.3 per cent, driven by increases from the big four banks, BHP Billiton and Woodside Petroleum.

Westpac, ANZ, BHP Billiton and Telstra had the largest dividend payouts, and were among the top 20 dividend payers globally.

The report found global dividends rose 3.8 per cent in the September quarter to $US288bn.

Global dividends were on track to reach a record $US1.19bn for 2014, it said.


With the exception of Telstra, share prices in these high dividend paying stocks have not been strong. It underlines how much the ASX has become an income play and not a capital gain play:



Here is the performance of the US stock market, which is much more about capital gains:





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