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Australian Stock Exchange (ASX)
Strong dividends
What’s in store for the reporting season?
Nathan Lear
Partner/Private Client Adviser
5 Aug 2013
The August reporting season is here, giving us an opportunity to think about what is in store for companies on the Australian Stock Exchange (ASX).
Here are a few themes to keep a close eye on:
Cost Cutting
A key focus for Australian companies over the past couple of years has been that of cost reduction. In challenging economic times, with pressure on revenue, many companies have been focused on reducing expenditure to ensure profitability. This trend is likely to continue.
Revenue
Continued revenue growth is important to any company. A rise in revenue is a sign that a company is growing. As companies have been navigating their way through a tough economic environment, we will be keeping a close eye on whether revenue growth continues.
Mining Sector
Much emphasis has been placed on the mining sector and in particular China. It is no surprise that a slowing Chinese economy has an effect on Australia. As the mining sector slows, we look to the non-mining sector to pick up some of the slack.
Australian Dollar
A weakening Australian dollar will continue to help Australian companies with offshore earnings.
Strong Dividends
We expect dividends to remain strong, with many companies continuing to increase dividends to shareholders.
The current dynamics of the economy still make it a challenging environment for many companies, with revenue growth not easy to come by. Now is a crucial time to invest in quality companies that have the ability to generate sustainable earnings and pay reliable dividends to investors.
Hewison Private Wealth is a Melbourne based independent financial planning firm. Our financial advisers are highly qualified wealth managers and specialise in self managed super funds (SMSF), financial planning, retirement planning advice and investment portfolio management. If you would like to speak to a financial adviser on how you can secure your financial future please contact us 03 8548 4800, email info@hewison.com.au or visit www.hewison.com.auPlease note: The advice provided above is general information only and individuals should seek specialised advice from a qualified financial advisor. The views in this blog are those of the individual and may not represent the general opinion of the firm. Please contact Hewison Private Wealth for more information.