Mining giants promised bumper payouts to investors after a surge in commodity prices that has fuelled talk of a new ‘supercycle’.
BHP will pay shareholders a record half-year dividend of 72p per share after a rally in iron ore prices helped profits rise 17 per cent to £7billion. It means that the world’s biggest miner and the largest firm on the FTSE 100, will hand out £3.7billion in total.
Glencore, too, pleased its backers by reinstating payouts with an 8.6p per share full-year dividend, worth £1.2billion, gamewin88.life after it slashed debts built up last year when it poured money into its trading arm to take advantage of seesawing markets.
Pay out: Mining giant BHP Billiton will pay shareholders a record half-year dividend of 72p per share after a rally in iron ore prices helped profits rise 17 per cent to £7bn
Savers, pensioners and retail investors will be celebrating the returns after a dividend-starved 2020, when companies went into Covid crisis mode.
The big miners could dish out about £13.5billion of dividends next year, according to AJ Bell’s investment director Russ Mould.
The driving forces include booming demand in China and hopes of a major spending spree in the US under President Biden.
Analysts believe a post-Covid economic bounceback, low supplies and the push to invest in renewables could mean recent rallies are only the beginning of a new supercycle that will see commodities rocket in value.