Banks will lead a revival for dividends in Australia through 2021 according to the global asset manager, with 40 per cent growth forecasted and payouts reaching 85 per cent of pre-pandemic levels.
After the dividend drought of 2020 which saw dividends fall -40%, investors are ideally positioned to capitalise on the commodity price boom supporting mining dividends and the dividend recovery being experienced within banks and more broadly across the market
Dividend payouts forecast for revival this year after pandemic cliff edge
Mining companies have led a revival in payouts in the first quarter, following soaring commodity prices. (AFP via Getty Images)
Dividend payouts are expected to return to near pre-pandemic levels after miners and banks led a revival in the first quarter of 2021.
Asset manager Janus Henderson has upgraded this year’s forecast from $1.32 trillion to $1.36 trillion in its latest dividend index published today.
It comes after a strong first quarter for payouts which were just 2.9 per cent lower than in the same period last year, pre-pandemic, at $275.8bn.
Dividend payments fell at their slowest pace in a year, down just 1.7 per cent lower than the same period last year, a smaller decline than the three preceding quarters.