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
PRYPrimary Health CareHealth Care Equipment & Services 11.2100.0%3.02%39814.41.29x
NAMNamoi CottonCommercial & Professional Services 00.0%0%40-3.80.00x
NBLNoni BRetailing 00.0%0%1306.10.00x
NCKNick ScaliRetailing 31100.0%3.74%61532.31.04x
NCMNewcrest MinMaterials 19.560.0%0.54%180858.312.98x
NHCNew Hope CorpEnergy 4100.0%2.47%162-6.5-1.63x
NHFNIB HldgsInsurance 14.75100.0%3.1%47621.21.44x
NTCNetComm WirelessTechnology Hardware & Equipment 00.0%0%2151.540.00x
NUFNufarmMaterials 110.0%1.21%9086.10.55x
NABNational Aust BankBanks 198100.0%6.46%30658.780.04x
MXIMaxiTRANS IndCapital Goods 3100.0%5.83%51.52.430.81x
MLTMiltonDiversified Financials 18.6100.0%4.28%43519.761.06x
MMSMcMillan ShakesprCommercial & Professional Services 63100.0%5.98%105499.41.58x
MNYMoney3Diversified Financials 5.25100.0%3.34%15714.212.71x
MOCMortgage ChoiceBanks 16.5100.0%7.14%23115.70.95x
MQGMacq GrpDiversified Financials 43042.2%4.95%8693622.071.45x
MRMMMA OffshoreTransportation 00.0%5.56%27-38.640.00x
MRNMacquarie MediaMedia 5100.0%4.44%907.791.56x
MTSMetcashFood & Staples Retailing 00.0%0%22218.20.00x
NVTNavitasConsumer Services 19.3100.0%4%488241.24x
NWHNRW HldgsCapital Goods 00.0%0%62.57.70.00x
PMEPro MedicusHealth Care Equipment & Services 30.0%0.65%4626.32.10x
PMPPMPCommercial & Professional Services 2.40.0%5.5%65.50.060.03x
PMVPremier InvestRetailing 48100.0%3.37%142466.271.38x
PPCPeetReal Estate 00.0%4.66%96.58.70.00x
PPGPro-Pac PackagingMaterials 2.5100.0%5.67%48.53.011.20x
PPTPerpetualDiversified Financials 255100.0%5.29%4817290.81.14x
PRGProgrammed MaintCommercial & Professional Services 8.5100.0%4.62%184-37.8-4.45x
PROProphecy IntlSoftware & Services 40.0%5.88%683.80.95x
PMCPlatinum CapitalDiversified Financials 00.0%4.43%158-80.00x
PKAPlukkaDiversified Financials 00.0%0%3.5-9.460.00x
OCLObjectiveSoftware & Services 4100.0%2.21%1815.781.45x
OMHOM HldgsMaterials 00.0%0%15-21.010.00x
ORIOricaMaterials 49.536.4%2.81%1759921.86x
OSHOil SearchEnergy 6.697.3%0.96%696-20.74-3.10x
OZGOzgrowthNot Applic 0.5100.0%3.03%16.50.160.32x
PANPanoramic ResMaterials 00.0%0%27-42.70.00x
PFGPrime FinancialDiversified Financials 0.8100.0%6.4%12.52.222.78x
PHIPhileo AustReal Estate 2100.0%0.25%8003316.50x
MLBMelbourne ITSoftware & Services 686.7%3.73%187.57.071.18x
MIRMirrabooka InvestDiversified Financials 15100.0%3.39%2955.890.39x
IXIiShares Glb Cons241.657.4%0%1274700.00x
IXJiShares Glb Health183.567.3%0%1309100.00x
IXPiShares Glb Telecom264.637.6%0%812300.00x
IZZiShares China LCapNot Applic 104.898.2%2.29%4714-198.99-1.90x
JBHJB Hi-FiRetailing 109100.0%3.66%2730153.761.41x
JHXJames Hardie IndMaterials 42.12.0%1.91%220052.431.25x
JYCJoyceRetailing 6100.0%4.2%14312.52.08x
KATKatana CapitalNot Applic 0.550.0%6.9%72.51.342.68x
IVViShares S&P 500Not Applic 502.235.9%1.62%31500-1819.82-3.62x
IVEiShares MSCI EAFENot Applic 197.487.3%2.52%7969869.654.40x
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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.