Dividends forecast to keep flowing into investors' pockets

Australian companies paid out a record $97.7 billion in dividends to investors during 2022, the latest Global Dividend Index from Janus Henderson has revealed.

While underlying growth in Aussie dividends was up 9.8% over the year, it lagged the strong global underlying growth rate of 13.9%.

According to the report, growth was held back by a weaker performance among Australian miners, with the sector unable to replicate its record payouts from 2021 as a result of lower prices.

BHP was an exception on this front, though, notching an 8% year-on-year increase, which helped the company cement its place on the index as the world’s biggest dividend payer for a second straight year.

Meanwhile, fellow miner Rio Tinto came in as the seventh largest dividend payer.

Looking forward into 2023, Janus Henderson client portfolio manager Jane Shoemake forecasts that global dividends could record further growth, even with the prospect of an economic slowdown.

“We do expect dividend growth to slow from the exceptionally high levels enjoyed in 2022, but we believe dividends are still likely to edge higher in 2023,” she says. disposal of the cryptocurrency will not be subject to CGT.

“Energy dividends are unlikely to repeat the sharp increases of 2022, while mining payouts are likely to fall further.

Instead, Chapman says it will be assessable income as you’ll be regarded as being in business as a buyer/seller of cryptocurrency.

It can be a fine line between being an investor and a trader.

Broadly, if you are turning over your crypto every few days chasing profits and are running a business-like structure (for example, with a registered business name and an Australian business number), you could be seen as a trader.

If you are holding the cryptocurrency with a view to long-term gain, you are likely to be viewed as an investor.

The ATO matches data from Australian designated service providers (DSPs) against its own records to identify people who may be tempted to fudge their crypto profits.

“If what you disclose on your tax return doesn’t match the data the ATO has received from DSPs, you can expect a ‘please explain’ letter at the very least,” warns Chapman.

“This makes it much harder to hide behind the anonymity that was previously one of the hallmarks of cryptocurrency.”

"Among financials, banks may benefit from wider margins, thanks to higher interest rates, so further dividend growth is certainly possible, subject to prudent planning for rising levels of bad loans as economic growth slows.”