The Dividend Destroyers

This infamous list includes stocks that have reduced their dividend payments consistently or stopped paying dividends altogether.

The criteria to become a member of this list are that the stock must have been paying dividends for at least five years and the trend in dividend payments has been declining. One off increases in dividends are discounted if the company has a history of decreasing or missing dividends.

Generally, the share market sees a reduction in dividends as a signal of poor performance and will discount the company’s share price immediately and substantially.

There are several acceptable of positive reasons why companies may reduce or stop dividend payments. These are:

  • To conserve cash for a new investment opportunity that will result in a longer term increase in earnings and possibly dividends.
  • To conserve cash to repay debt and therefore reduce interest costs.

The most common reason however is as a response to reduced actual earnings or to signal lower earnings ahead in the future. Share markets usually respond swiftly and viciously to unexpected dividend reductions and slash the share price accordingly.

An important thing to consider is whether the company has split its shares during the historical period of dividend evaluation. There will be a once of reduction in dividend at each share split so it is important to consider this reason for an apparent poor history of dividend performance.



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Stock Company Sector Dividend
(cents)
Franking Yield Price
(cents)
Earnings
per Share
(cents)
Dividend
Cover
Star Rating
PPKPPK Grp00.0%0%210.80.00x
NHFNIB Hldgs19100.0%2.84%66927.21.43x
NHCNew Hope Corp10100.0%4.29%23316.91.69x
NCMNewcrest Min19.328634.8%0.85%225452.262.70x
NCKNick Scali34100.0%4.76%714461.35x
NBLNoni B4100.0%1.88%2134.61.15x
NAMNamoi Cotton00.0%0%547.760.00x
NABNational Aust Bank198-66.7%6.79%2916194.70.98x
MXIMaxiTRANS Ind3.5100.0%4.67%755.781.65x
MTSMetcash10.5-90.5%3.29%31919.41.85x
MRNMacquarie Media7100.0%5.24%133.59.81.40x
MRMMMA Offshore00.0%0%29-101.330.00x
MQGMacq Grp485-72.6%4.75%10204716.21.48x
MOCMortgage Choice17.5100.0%7.23%24217.81.02x
MNYMoney35.65100.0%3.26%173.518.813.33x
MMSMcMillan Shakespr66100.0%3.89%169681.61.24x
MLTMilton18.7100.0%3.95%47418.791.00x
NTCNetComm Wireless00.0%0%118-1.230.00x
NUFNufarm130.0%1.59%81938.72.98x
NVTNavitas19.5100.0%3.66%53322.11.13x
PPGPro-Pac Packaging2100.0%4.76%422.111.06x
PPCPeet00.0%3.43%138.59.140.00x
PMVPremier Invest53100.0%3.51%151266.781.26x
PMPPMP00.0%0%51-33.30.00x
PMEPro Medicus462.5%0.48%8399.12.28x
PMCPlatinum Capital00.0%4.74%21120.030.00x
PKAPlukka00.0%0%1-0.020.00x
PHIPhileo Aust5100.0%0.41%12208116.20x
PFGPrime Financial0.85100.0%5.67%151.882.21x
PANPanoramic Res00.0%0%40-0.990.00x
OZGOzgrowth0.5-66.7%2.78%182.14.20x
OSHOil Search7.111-1.7%0.92%76616.912.38x
ORIOrica51.5-121.0%2.83%1819102.71.99x
OMHOM Hldgs00.0%0%1024.870.00x
OCLObjective580.0%1.22%32991.80x
NWHNRW Hldgs00.0%0%143.59.10.00x
MLBMelbourne IT9.5100.0%2.02%34716.091.69x
MIRMirrabooka Invest1416.7%3.64%2755.820.42x
KCNKingsgate Cons00.0%0%33.53.170.00x
KATKatana Capital0.5-233.3%2.41%832.114.22x
JYCJoyce6100.0%4.45%146101.67x
JHXJames Hardie Ind40.121-60.8%1.88%214574.891.87x
JBHJB Hi-Fi118100.0%4.23%2789154.31.31x
IZZiShares China LCap118.629-194.7%1.79%6386-198.99-1.68x
IXPiShares Glb Telecom229.467-116.8%2.95%7574998.354.35x
IXJiShares Glb Health183.595-93.2%1.22%14704906.724.94x
IXIiShares Glb Cons256.142-117.1%1.87%13347493.521.93x
IVViShares S&P 500519.232-64.0%1.46%349964067.327.83x
IVEiShares MSCI EAFE200.948-95.7%2.15%9187-1875.33-9.33x
IVCInvoCare44100.0%2.26%157477.31.76x
ITWiShares MSCI Taiwan113.09-233.3%2.27%4806-904.9-8.00x
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Disclaimer
The information provided on this website is for use of a general nature only and is not intended to be relied upon as, nor to be a substitute for, specific professional or investment advice. The team at Dividends.com.au are not lawyers, financial planners, investment advisers, or accountants. So, before taking any action or risking any money, you should always check with your own qualified professional advisers.