BHP Billiton have today announced their 2017 Interim Dividend at 40cents per share, which is a massive 150% increase from last year’s 16cents. The increase is due to the improved profitability as a result of the increase in commodity prices that has been experienced over the last year or so.
Although the increase is obviously welcome it is still less than the dividends paid in 2014 and before, but profits have not yet returned to the levels they were at that time. However, if the 40cents was repeated in the final results, the dividend yield would be around 4.5% in sterling terms (based on a $1.25 to £1 exchange rate), which is well above the FTSE average.
Interestingly, the impact on the share price has been minimal, the price is currently off the high at the start of the day, and currently up 0.39%, which probably reflects the caution about the near term within their statement.
If the company do pay 40cents at the full year stage, my dividend in sterling terms (based on a $1.25 to £1 exchange rate), would be £208.69 more than last year, and put my ful year dividend forecast for both my SIPP and ISA to £8,356.
I have several more companies announcing results in the next two weeks, so hopefully they can all increase their dividends and boost my income, however I am not expecting any of the companies to get anywhere near the BHP increase.