Jefferies Doubts a Special Dividend From Westpac Ahead of Results
Jefferies drops its expectation of a Westpac special dividend ahead of the November 2 annual report and keeps a hold rating with a A$34.99 target.
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what happened
Analyst Andrew Lyons at Jefferies has removed a special dividend from Westpac's expected payouts ahead of its annual report on November 2, and now assumes the bank keeps its elevated payout ratio, according to Market Talk. Jefferies forecasts flat FY26 cash earnings of A$6.96 billion, slightly below the consensus hope of A$7.0 billion.
The firm expects strong volume growth to be offset by pressure on net interest margin and higher bad debts. Looking into FY27, Jefferies says the focus shifts to "margin upside from higher rates, whether above-system Business growth can be sustained and cost discipline."
Jefferies keeps a hold rating and raises its price target by 0.8% to A$34.99 per share. Westpac closed Tuesday at A$35.13.
why it matters
For investors in Australian banks, the dividend outlook matters. Dropping an expected one-off payout suggests that yield will rest on regular distributions rather than on a single large sum. The November 2 results may set the tone for the sector.
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sources
- Westpac Special Dividend Now Looks Unlikely — Market Talk, 20 October 2026 at 22:55 UTC
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