Australian dividend forecasts have been cut the most since 2009, exceeding similar moves across some of the world’s largest markets this year.
It’s not a fair comparison given, owing to different tax regimes, many other jurisdictions prefer corporate buybacks to dividends for capital management. They have been slashed as well.
Still, in absolute terms, it’s another major blow to households. And, yes, I reckon the next shoe to drop after the banks will be the miners as iron ore falls ahead.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
