Dividend

QBE Insurance Group (QBE) is starting the year on a rough phase as it announces the 40-50 per cent decline in profit and 62 per cent in dividend, causing its shareprice to drop to an eight-year low. This follows yesterday's bad news regarding the involvement of the insurance company's subsidiary Balboa in a pricing probe in the US.

James Hardie Industries (JHX) bounces back to profitability after reporting that its net profit for the last six months reached $US128.4 million ($A126.51 million), compared to the $US318.8 million loss in the previous period. Chief Executive Louis Gries said that the company's recovery for the past six months proved the benefit of a more stable operating environment in the United States.

Leighton Holdings (ASX:LEI) will not pay its final dividends this financial year but expects to continue in 2011-12.

The company has forecast net profit ranging between $600 million to $650 million for the year until June 20, 2012.

The Leighton has announced plans to raise $757 million, and expects to a $427 million loss for the period. For nine months until March 31, the company has reported a net loss of $382 million.

Financial Services Group, Suncorp (ASX:SUN) held their Annual General Meeting (AGM) on Thursday, with shareholders appealing for more dividends during question time. The questioning came about due to a concern in the risk of flood cover claims and pay package complaints from the union. Profit has been up for Suncorp Metway from $348 million in 2008-09 to $780 million this last financial year. Suncorp's dividend payout target has been reduced to 50-60 percent of cash profits.

Australian listed AXA Asia Pacific (ASX:AXA), a wealth management company, posted a 19 percent fall in first half net profit. The first six months to June 30 had a net profit of $219 million, down from $270 million for the corresponding period last year. Reported profit falls were in line with forecasts provided by the public company last month.

AXA Asia Pacific Dividends

Toll Holdings (TOL) have posted a 32 percent fall in their net profit to $107 million for the first half of the Australian financial year. Toll Holding stocks had a fall of $1.55, bringing the stock price to its 6 month low yesterday. The transport and logistics company blamed a 6 percent fall in revenue on the consequences of the GFC (global financial crisis).

Mortgage Choice (MOC) has seen a healthy 22 percent increase of their half year net profit to $7.8 million. Mortgage Choice is an independently owned mortgage broker which offers home loan packages from 23 lenders. Operating revenue fell as trailing commissions from the existing loan book fell. However, the company’s income was buoyed by $28 million worth of new lending as well as a 23 percent increase over the previous 12 months of additional housing finance commitments.

Suncorp Metway’s (SUN) has cut their interim dividend to 15 cents (down 5 cents on same dividend last year) although the company's first half profit has dramatically risen by 41 per cent to $364 million. The company has reduced their dividend to preserve cash and the profit figure was driven by a recovering insurance market and a reduction in insurance claims.

Wesfarmers (WES) has warned its shareholders that it may slash its dividend as a result of decrease in the value of its investment due to the financial crises situation all over the world. The companies share price has gone down by 5%. Wesfarmers is the first company to make such an announcement in the market which other companies are reluctant to do. Many companies in United States and Europe have already made such an announcement.

Telstra [TLS] shares fell on the news that the telecommunications carrier's latest earnings have fallen by 10 per cent for the first half of the 2005/2006 business year. There may be a positive sweetner to the deal with a promise to maintain an annual dividend payout at 28 cents per share until the 2008 financial year. Telstra reported a $2.14 billion net profit for the six months to December 31, down 10.3 per cent from $2.39 billion in the previous corresponding period. Sol Trujillo the Chief executive of Telstra said customers had continued to ditch its fixed line calling products in favour of internet and mobile products.