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
PRGProgrammed MaintCommercial & Professional Services 19.5-173.5%2.33%3014.80.25x
NUFNufarmMaterials 130.0%1.55%83838.72.98x
NTCNetComm WirelessTechnology Hardware & Equipment 00.0%0%112-1.230.00x
NHFNIB HldgsInsurance 19100.0%3.13%60727.21.43x
NHCNew Hope CorpEnergy 10100.0%5.13%19516.91.69x
NCMNewcrest MinMaterials 19.328634.8%0.88%218652.262.70x
NCKNick ScaliRetailing 34100.0%5.48%620461.35x
NBLNoni BRetailing 4100.0%1.98%2024.61.15x
NAMNamoi CottonCommercial & Professional Services 00.0%0%450.260.00x
NABNational Aust BankBanks 198100.0%6.15%3217172.80.87x
MXIMaxiTRANS IndCapital Goods 3.5100.0%5.07%695.781.65x
MTSMetcashFood & Staples Retailing 4.5100.0%1.77%25417.93.98x
MRNMacquarie MediaMedia 7100.0%6.09%1159.81.40x
MRMMMA OffshoreTransportation 00.0%0%17.5-101.330.00x
MQGMacq GrpDiversified Financials 47045.0%5.07%9279657.61.40x
MOCMortgage ChoiceBanks 17.5100.0%8.33%21017.81.02x
MNYMoney3Diversified Financials 5.65100.0%3.49%16218.813.33x
MMSMcMillan ShakesprCommercial & Professional Services 66100.0%4.37%150981.61.24x
NVTNavitasConsumer Services 19.5100.0%4%48722.11.13x
NWHNRW HldgsCapital Goods 00.0%0%1219.10.00x
PPTPerpetualDiversified Financials 265100.0%5.13%51643001.13x
PPKPPK GrpCapital Goods 00.0%0%200.80.00x
PPGPro-Pac PackagingMaterials 2100.0%4.76%422.111.06x
PPCPeetReal Estate 00.0%3.52%1359.140.00x
PMVPremier InvestRetailing 53100.0%4.03%131566.781.26x
PMPPMPCommercial & Professional Services 00.0%3.16%76-33.30.00x
PMEPro MedicusHealth Care Equipment & Services 462.5%0.65%6139.12.28x
PMCPlatinum CapitalDiversified Financials 00.0%5.56%18020.030.00x
PKAPlukkaDiversified Financials 00.0%0%0.6-0.020.00x
PHIPhileo AustReal Estate 5100.0%0.47%10758116.20x
PFGPrime FinancialDiversified Financials 0.85100.0%4.47%191.882.21x
PANPanoramic ResMaterials 00.0%0%41-0.990.00x
OZGOzgrowthNot Applic 0.5100.0%3.03%16.52.14.20x
OSHOil SearchEnergy 7.111-1.7%0.98%71516.912.38x
ORIOricaMaterials 52.521.0%2.61%2011103.91.98x
OMHOM HldgsMaterials 00.0%0%474.870.00x
OCLObjectiveSoftware & Services 580.0%1.52%26391.80x
MLTMiltonDiversified Financials 18.7100.0%4.15%45118.791.00x
MLBMelbourne ITSoftware & Services 9.5100.0%2.3%30516.091.69x
KMEKip McGrath Edu CtrConsumer Services 00.0%3.85%523.20.00x
KCNKingsgate ConsMaterials 00.0%0%333.170.00x
KATKatana CapitalNot Applic 0.575.0%2.74%732.114.22x
JYCJoyceRetailing 6100.0%4.11%158101.67x
JHXJames Hardie IndMaterials 40.6982-2.5%2.29%177481.111.99x
JBHJB Hi-FiRetailing 118100.0%5.03%2346154.31.31x
IZZiShares China LCapNot Applic 97.32267.2%1.66%5846-198.99-2.04x
IXPiShares Glb Telecom259.0995.0%3.39%7628998.353.85x
IXJiShares Glb Health191.8813.8%1.32%14527906.724.73x
IXIiShares Glb Cons245.714.3%1.84%13284493.522.01x
IVViShares S&P 500Not Applic 524.0172.5%1.58%327504067.327.76x
IVEiShares MSCI EAFENot Applic 185.2933.9%2.08%8870-1875.33-10.12x
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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.