Dividend increase by BBL.
This week BBL announced a 28% increase in its semi-annual dividend. The dividend is raised from $0.86 to $1.10. The dividend pay date is March 27, 2018 to shareholders of record on March 9, 2018 (ex dividend March 7, 2018).
Andrew Mackenzie, CEO of BHP Billiton stated:
“We’ve had a good start to the year. Our plans to maximise cash flow, maintain capital discipline and increase value and returns are on track. We’ve benefited from higher commodity prices but most importantly delivered a solid operating performance. We’re on track to carry this momentum forward into the second half and beyond.”
The Board of BHP Billiton has determined to pay an interim dividend of 55 US cents per share, which is covered by free cash flow. Because BBL-ADR consists of two shares of BHP, the dividend for BBL will be 110 cents. This dividend represents a payout ratio of 72%.
The new dividend amount represents an annualized dividend amount of $2.20 per share, up from $1.72. The dividend yield on current price is 1.66 %. My Vrijheid Fonds consist of 30 shares of BBL, so my annual dividends will increase by €9.93 ($12.24) after taxes.
My projected annual total amount from my shares of BBL will be €46 after taxes.
Again a very nice increase from BHP Billiton. I love these kinds of increases!