Dividend payments to Australian investors may not grow at all this year, a survey shows.
The Henderson Global Dividend Index shows that Australian dividends fell almost 50 per cent over the March quarter, compared to the same quarter in 2015.
Australian dividend growth has been hit by Woodside Petroleum moving its payment to the second quarter and BHP Billiton cutting its distribution payout.
Henderson Global Investors head of equity income Alex Crooke says the figures reflect local investors' dependence on banks and commodity producers, which together make up more than two thirds of their equity income.
"The dramatic downturn in the mining sector is hitting shareholder income hard," he said in a statement.
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"Along with deep cuts from the oil sector, sharply lower payouts from BHP and Rio are likely to wipe out dividend growth from Australia altogether this year."
Mr Crooke said the remaining three quarters look better for investors than the past one, but the outlook for dividend growth in Australia is still gloomy.
Meanwhile, global dividends rose 2.2 per cent to $A301.7 billion over the same period.
US, Japan and Hong Kong investors have received particularly large payments in the quarter, the survey said.
In France and Germany, almost every company increased payouts or held them flat in the March quarter.
Mr Crooke said the figures demonstrated why investors should think about investing globally - it helps diversify ask away from specific sectors and countries, especially amid divergent economic fortunes.
"Global dividend growth will be a little slower in 2016 than it was in 2015, but it is set to outpace Australia," he added.
"We expect strong growth in Japan, North America and Europe partially offset by weakness in the UK, Australia, and emerging markets."
