Investors are concerned that Australian companies are “hoarding” their earnings rather than using the money to grow their business or return it to shareholders as boards worry about a slowdown in the economy and the hit to profits.

The ASX was hit with one of the sharpest declines in payouts in the world in the second quarter of 2024, with the headline rate plunging 19 per cent from a year earlier to just $US7.1 billion ($10.4 billion), Janus Henderson said. That is despite global dividends jumping to a record $US606.1 billion.