Already starting? We highlighted several weeks ago that the reporting season for the April-June quarter is unlikely to bring significant stimulus in terms of earnings performance, although dividends could surprise on the upside. This is as we notice a trend of companies raising dividend payouts, partly heeding the call from various quarters, and partly reflecting the build-up of cash surplus as re-investment opportunities appear harder to come by nowadays.
As it is, BAT (RM41.00) started the ball rolling when it raised interim net dividend payout by 12% to RM1.08 per share, providing a net yield of 2.6%. For the full year, BAT is well on track to offer more than 6% net dividend yield, doubling the prevailing level of cash returns.
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