Reporting season – what investors need to know
Profits for Australian companies have likely dropped overall by about 1% however, dividend payments continue to rise.
The resources sector likely drove profits for Australian companies down by about 1% over the last financial year. With commodity prices collapsing, resources companies remain under pressure while the industrials sector will see profit growth for the fourth year in a row. In this video, Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Capital, provides an update on what SMSF investors can expect from the profit reporting season.
While revenue growth is constrained and overall profits are likely down, concern over Australian companies paying dividends that are too high is unwarranted, as higher dividend payouts are mainly due to resources companies in the aftermath of the mining investment boom.
About the author
Head of Investment Strategy and Economics and Chief Economist at AMP Capital, Shane is responsible for AMP Capital's diversified investment funds. He also provides economic forecasts and analysis of key variables and issues affecting, or likely to affect, all asset markets.