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Australian Investors Set for Biggest Payout Cuts in a Decade

  • About one-third of ASX 100 stocks have altered dividend plans
  • Banks to lead payout cuts, while miners offer potential upside
Updated on

Australia’s largest companies are expected to slash dividend payouts over the August reporting season by the most since the global financial crisis as the coronavirus pandemic eroded corporate balance sheets.

Payments from firms on the S&P/ASX 200 index may plunge as much as 40% in 2020, before declining another 11% in 2021, according to data compiled by Bloomberg. The pace of cuts and cancellations seen earlier this year is set to intensify as Covid-19 lockdowns, social restrictions and travel curbs squeeze company profits.