BHP lifts final dividend to 20c
NZPA-AAP Melbourne
The Broken Hill Proprietary Company, Ltd, has announced a final dividend of 20 cents, underpinning forecasts that it will post a profit of sAustl.2 billion for the year to May 31.
The move to 20c from last year’s 12.5 c (adjusted for a one-for-five bonus) gives BHP an annual dividend of 37.5 c which, according to resources analysts, should be maintained in 1987 despite forecasts of a decline in profit The analysts said the higher dividend, which represents a pay-out of S43OM for the year to May 31, would be welcomed by shareholders. It represents a 64 per cent increase on the SI6BM paid out in the 1985-86 year.
Analysts said the dividend was much as predicted, and was not being seen as a “sweetener” to regain the loyalty of dis-
gruntled shareholders unable to cash in on Mr Robert Holmes a Court’s 770 c a share offer for BHP scrip. It was unlikely that whoever controlled BHP in 1987 would be reducing the dividend, even if the profit dropped back to about S9OOM as predicted, one analyst said.
He said the current profit forecasts were based on earnings per share of 82c and, even on the 72c a share which made up the S9OOM forecast, a 20 cent dividend was quite feasible. The longer-term forecast was based on an expected stabilisation of
the oil price to SUSIB a barrel, an Australian dollar worth 70 U.S. cents, and a company tax rate of 49 per cent. . The analysts said Elders IXL and Robert Holmes i a Court’s Bell Resources would be major beneficiaries of the higher dividend, as both had beneficial interests in BHP of more than 18 per cent.
The brokers believe Mr Holmes a Court’s options in his bld for BHP depend heavily on BRL’s application to the Victorian Supreme Court to have its Part A offer document sent to BHP shareholders by tomorrow.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/CHP19860421.2.146.13
Bibliographic details
Press, 21 April 1986, Page 29
Word Count
324BHP lifts final dividend to 20c Press, 21 April 1986, Page 29
Using This Item
Stuff Ltd is the copyright owner for the Press. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Copyright in all Footrot Flats cartoons is owned by Diogenes Designs Ltd. The National Library has been granted permission to digitise these cartoons and make them available online as part of this digitised version of the Press. You can search, browse, and print Footrot Flats cartoons for research and personal study only. Permission must be obtained from Diogenes Designs Ltd for any other use.
Acknowledgements
This newspaper was digitised in partnership with Christchurch City Libraries.