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
PROProphecy Intl00.0%0%453.030.00x
NWHNRW Hldgs2-233.3%0.95%21011.65.80x
NVTNavitas17.4-53.3%3.9%446-15.6-0.90x
NUFNufarm130.0%1.9%68537.472.88x
NTCNetComm Wireless00.0%0%79.55.450.00x
NHFNIB Hldgs20-83.3%3.07%65229.41.47x
NHCNew Hope Corp12100.0%3.15%38122.61.88x
NCMNewcrest Min24.63-104.5%1.28%193935.581.44x
NCKNick Scali40-100.0%5.93%67550.61.27x
NBLNoni B13-2.6%1.15%34921.31.64x
NAMNamoi Cotton00.0%4.04%475.30.00x
NABNational Aust Bank198-66.7%6.98%2837194.70.98x
MXIMaxiTRANS Ind3.5-42.9%5.79%60.55.441.55x
MTSMetcash13-79.5%4.71%276-15.3-1.18x
MRNMacquarie Media7-90.5%3.32%2118.541.22x
MRMMMA Offshore00.0%0%23-4.110.00x
MQGMacq Grp525-124.7%4.06%12940758.21.44x
OCLObjective5-233.3%1.6%31281.60x
OMHOM Hldgs00.0%0%13626.860.00x
PPTPerpetual275-69.7%6.27%43893051.11x
PPKPPK Grp00.0%0%343.40.00x
PPGPro-Pac Packaging2-66.7%8.33%24-1.15-0.58x
PPCPeet00.0%4.1%12210.020.00x
PMVPremier Invest56100.0%2.85%196570.91.27x
PMPPMP00.0%0%20-32.50.00x
PMEPro Medicus6-94.4%0.59%101912.42.07x
PMCPlatinum Capital00.0%5.41%18517.660.00x
PKAPlukka00.0%0%1.30.740.00x
PHIPhileo Aust5100.0%0.38%132529458.80x
PFGPrime Financial0.9-66.7%7.83%11.5-0.06-0.07x
PETPhoslock Env Tec00.0%0%46.5-0.170.00x
PANPanoramic Res00.0%0%51-2.090.00x
OZGOzgrowth0.5-66.7%2.7%18.53.46.80x
OSHOil Search9.66-65.7%1.09%89621.442.22x
ORIOrica48-97.2%2.73%1759-10-0.21x
MOCMortgage Choice18-66.7%10.98%1643.40.19x
MNYMoney39.5-75.4%4.59%20719.912.10x
MMSMcMillan Shakespr73-82.6%4.08%178860.90.83x
KOVKorvest12-94.4%4.94%24312.31.03x
KNHKoon00.0%0%7.10.040.00x
KMEKip McGrath Edu Ctr00.0%4.41%684.490.00x
KCNKingsgate Cons00.0%0%21.5-14.430.00x
KATKatana Capital1-233.3%3.57%778.958.95x
JYCJoyce6-233.3%7.28%15110.71.78x
JHXJames Hardie Ind42.37-175.8%1.98%211743.051.02x
JBHJB Hi-Fi132-16.2%5%2640203.091.54x
IZZiShares China LCap168-95.8%2.79%5862-198.99-1.18x
IXJiShares Glb Health132.37-104.1%1.11%8496453.363.42x
IXIiShares Glb Cons202.92-85.5%1.97%6911246.751.22x
IVViShares S&P 500560.72-61.1%1.38%403164067.327.25x
IVEiShares MSCI EAFE236.85-152.1%2.5%9368-1875.33-7.92x
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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.