AusBN - Shareholders are set to be paid more than AUS$22 billion in dividends from March to July, a figure which underlines the growing strength of Australian corporate firms.
The $22 billion dividends figure is up from the $19 billion paid out in the same period during last year, according to market research company CommSec.
CommSec's chief economist Craig James said: “The bottom line is that Australian companies are in good shape - they're reporting profits and determining they want to reward shareholders."
Furthermore, AMP Capital’s chief economist and head of investment strategy Shane Oliver added that increased dividends should driver consumer spending.
"The Australian share market is one share market that pays pretty good dividends, at the moment the dividend yield on shares is about 4.5% and, including the franking credit, its pushing up to 6%,” he said.
"There's very few share markets around the world that pay such high dividends and there's no doubt that does support spending in the economy, particularly in an environment where bank deposit rates are so low."