As a result of the US Tax Cuts and Jobs Act which reduced the US Federal corporate income tax rate from 35 per cent to 21 per cent as well as other measures, including changes to international tax provisions, BHP included in its half-yearly accounts an income tax expense of US$1.8 billion.
Its New York share price promptly dropped by between 4.4 to 5.22% and was followed this morning here in Australia by an immediate drop of 5%.
However, its half-yearly dividend went up to US$0.55 which, given an exchange rate around AUS$0.79, means a payout of AUS$0.70 per share. Add the mostly refundable franking credit - thank you, Peter Costello! - and I can look forward to receiving a dollar a share come 27 March 2018.
I can eat again! ☺
