A dividend increase by the mining company BBL of my Vrijheid Fonds.
On 20 august BBL announced a 23,81% increase in its Final-annual dividend. The dividend is raised from $1.20 to $1.56. The dividend pay date is September 25, 2019 to shareholders of record on September 6, 2019 (ex-dividend September 5, 2019).
BHP Chief Executive Officer, Andrew Mackenzie:
“Today we announced a record final dividend of 78 US cents per share, or US$3.9 billion. This is on top of a record US$17 billion already returned to shareholders in the 2019 financial year. We enter the 2020 financial year with positive momentum and a strong outlook for both volume and cost.”
The Board of BHP Billiton has determined to pay an interim dividend of 78 US cents per share. Because BBL-ADR consists of two shares of BHP, the dividend for BBL will be 156 cents.
The new dividend amount represents an annualized dividend amount of $4.70 per share (including a special dividend of $2.04), up from $2.36. The dividend yield on current price is 5.28%.
My Vrijheid Fonds consist of 30 shares of BBL, so my annual dividends will increase by €6.96 ($7.65) after taxes. My projected annual total amount from my shares of BBL will be €118 after taxes (€65 excl special dividend).
Again, a very nice increase from BHP Billiton, I love these kinds of increases! However, with the current payout ratio of 74%, I see not much room for growth.