Mining giants set to slash their dividends after handing back record amounts to investors last year
Mining giants are set to slash their dividends after handing back record amounts to investors last year.
Payouts from miners accounted for £1 in every £6 given out by listed UK companies in 2022, according to data firm Link, after soaring commodity prices drove up profits.
But a drop in metals prices and plans by firms to spend billions on projects signal the end of mega-dividends.
Cutting back: A drop in metals prices and plans by firms to spend billions on projects signal the end of mega-dividends
Rio Tinto paid shareholders £14billion last year. But its regular dividend is expected to drop by 45 per cent to £6billion, according to Refinitiv forecasts.
Anglo American may see a drop of more than 50 per cent, while BHP’s half-year dividend may drop 40 per cent.
Ben Davis, mining analyst at Liberum, said: ‘I think we’re at or past peak dividend. They are going to be far more sedate going forward.’
Although miners already had hefty dividends, companies handed out excess profits to investors via special one-off payouts, which are unlikely to be repeated.
