In turbulent markets, some companies are cancelling or suspending dividend payments to protect balance sheets
Across the S&P/ASX 300 dividends announced but not paid as at March 25th totalled ~$17.6bn, and the ability to cancel such payments may be a key source of funding for many companies
To date dividends worth $404mn have been cancelled, $384mn deferred and $16.7bn remain ‘payable’
Under s.254T of the Corporations Act, a solvency test is outlined when considering a company’s dividend payment. Interim dividends can typically be cancelled.
Some companies that are raising capital have yet to announce dividend cancellations or suspensions, including OML, SXL and WEB (ex-date 25th March).
A data table with the status of ASX 300 company dividends announced, but yet to be paid can be provided
The report can be downloaded by clicking on the following link: LESSONS FROM GFC CAPITAL RAISINGS – IMPLICATIONS IN THE CURRENT ENVIRONMENT