BHP Billiton has announced a dividend increase for its interim dividend in 2020.
This week BBL announced a 18.19% increase in its interim dividend. The dividend is raised from $1.10 to $1.30. The dividend pay date is March 24, 2020 to shareholders of record on March 6, 2020 (ex-dividend March 4, 2020).
Mike Henry, CEO of BHP Billiton stated:
“We delivered a strong set of half-year results, grounded in solid operational performance. Underlying EBITDA was up 15 per cent, to US$12 billion, and return on capital employed increased, to 19 per cent. With solid cash flow, the Board announced an interim dividend of 65 US cents per share, our second highest on record.
BHP is in good shape. We have passionate and committed people hungry to perform. We have brought together high-quality assets in a simple portfolio that allows us to create value at scale. Our balance sheet is strong, and we have embedded a Capital Allocation Framework which drives discipline and better decisions.”
The Board of BHP Billiton has determined to pay an interim dividend of $0.65 cents per share. Because BBL-ADR consists of two shares of BHP, the interim dividend for BBL will be $1.30. This dividend represents a payout ratio of 82%.
The new dividend amount represents an annualized dividend amount of $2.86 per share, up from $2.56. The dividend yield on current price is 5.65 %. The peak in the graph below, shows the special dividend of $2.04 in 2019.
My Vrijheid Fonds consist of 30 shares of BBL, so my annual dividends will increase by €4.72 ($5.10) after taxes. My projected annual total amount from my shares of BBL for 2020 will be €67 after taxes.
Again, a very nice increase from BHP Billiton. I love these kinds of increases!