Australian companies plan to distribute the lowest amount of dividends since the pandemic ravaged markets four years ago, raising concerns that income-starved investors will have less cash to deploy into volatile equity markets in the coming months.

Dwindling shareholder payouts intensified in February’s reporting season as China’s property crisis triggered a near 30 per cent collapse in iron ore prices last year, forcing miners to slash dividends. The rout has extended into this year, and futures in Singapore dropped below the key $US100 a tonne level on Monday for the first time since mid-January.