Originally published by Rivkin Securities
The US stock markets managed to hold on to a small gain last night with the Dow Jones Industrial Average and S&P 500 up 0.18% and 0.16% respectively. This puts them very close to their record highs and represents a significant divergence from the Australian market which has been trending down since the beginning of May. Oil prices tumbled overnight as a much larger inventory build was reported by the Department of Energy. The expected re-balancing of the oil market as a result of the OPEC cuts is not occurring as quickly as analysts had expected. Australian Q1 GDP was released yesterday coming in at 0.3%. Although this is a low number, the market seemed somewhat relieved as it was feared the number could be negative. Today the May trade balance will be released which is expected to show a surplus of $1.91bn. The S&P/ASX 200 is expected to open slightly down with futures off 10 points.
Below is a table of upcoming dividends for the S&P/ASX 50.
The table shows the predicted upcoming dividend for the 15 companies in the ASX 50 that are next due to pay dividends. Where the dividend has not yet been declared, the details are predicted based on Bloomberg prediction system. The trailing 12M yield is calculated by annualising the most recently paid dividend and dividing by the current share price and is based on the net dividend amount.
The top six entries in the list are all from the listed property sector which is why franking levels are low. After a weak finish to 2016, stocks in this sector have generally rallied so far in 2017 as fears of rising interest rates subsides. Although the US has started its interest rate hiking cycle, Australia is still some way from this and may even see lower rates. Dividend yields for these stocks average around 4.4% although this is a gross yield due to the lack of franking. After 29 June, the next dividend payments won’t occur until mid-August. None of the stocks due to pay dividends in the next 30 days are held in any Rivkin portfolios.
Data releases:
· Australia Trade Balance April 11:30am AEDT
. Chinese Trade Balance May Tentative