Unsustainable Dividend Shares

These are companies that payout an unsustainable dividend. That is, the current annual dividend payment is greater than the reported earnings per share. In many cases this will be a once off event due to a poor earnings year caused by an unforeseen event and earnings will recover next year, but it is prudent to investigate why your investments candidates are paying out more in dividends than they are earning.

Here is a checklist of factors that may make a companies dividend unsustainable:

  • High Payout Ratio – can future dividends be met by earnings? Does the company retain enough earnings for reinvestment and maintenance of key income producing assets.
  • High Debt to Equity Ratio – is the company able to meet interest payments and still be sufficiently profitable to pay dividends?
  • Earnings trend and Guidance – is the direction and quality of earnings, and the future guidance of earnings consistent sufficient to maintain dividend payments?

The following is a list of dividend paying companies that have recently reported negative earnings or where the dividend is greater than earnings.



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Stock Company Sector Dividend
(cents)
Franking Yield Price
(cents)
Earnings
per Share
(cents)
Dividend
Cover
Star Rating
VTSVngd US Total Market131.76-122.7%0%2067400.00x
RCBRussell Au Sel Corp Bnd59.19-163.8%0%202000.00x
QBEQBE Insurance Grp50-233.3%2.36%1101-114.14-2.28x
PPGPro-Pac Packaging2-66.7%8.33%24-1.15-0.58x
PFGPrime Financial0.65-233.3%7.83%11.5-0.06-0.09x
ORIOrica51.5-233.3%2.73%1759-10-0.19x
NWSNews Corp19.27-233.3%0.98%1886-351.78-18.26x
NVTNavitas8-233.3%3.9%446-15.6-1.95x
MTSMetcash13.5-233.3%4.71%276-15.3-1.13x
MAMMicroequities2-233.3%0%6000.00x
RDVRussell High Div194.92-184.3%0%298700.00x
REFReverse Corp5.5-233.3%10.31%9.7-0.68-0.12x
RGBRussell Au Govt Bnd40.52-182.3%0%211000.00x
VLCVngd MSCI Au Large Co295.73-233.3%0%649500.00x
VHYVngd Aust High Yield476.563-233.3%0%598200.00x
VGBVngd Aust Govt Bond131.26-233.3%0%494000.00x
VEUVngd All-World ex-US119.6-199.9%0%722000.00x
VAPVngd Aust Property785.97-233.3%0%825100.00x
VAFVngd Aust FI Idx132.92-233.3%0%490000.00x
TLMTalisman Min6.375-233.3%0%28.5-3.97-0.62x
SKTSky Network TV14.07-233.3%6.96%199-56.79-4.04x
RSMRussell Au Semi Bond40.76-174.2%0%206100.00x
KKTKonekt1-233.3%3.03%33-0.17-0.17x
KBCKeybridge Capital0.5-233.3%5.88%8.5-4.57-9.14x
JMSJupiter Mines7.5-233.3%0%34.500.00x
CUPCountplus2-233.3%1.5%66.5-0.16-0.08x
CGOCPT Global0.5-233.3%1.28%19.5-3.03-6.06x
CAJCapitol Health0.9-233.3%2.86%28-1.36-1.51x
CABCabcharge Aust8-66.7%3.49%229-1.84-0.23x
AUPAurora Prop16.16-108.0%13.47%23000.00x
APZAspen Grp4.4-233.3%4.29%98-1.27-0.29x
AODAurora Div Inc Tr2.61-192.5%6.58%57-0.81-0.31x
ALFAust Leaders Fund4-233.3%1.88%106.5-2.53-0.63x
AIBAurora Global Inc Tr1.49-56.4%19.15%20-15.25-10.23x
CYCCyclopharm1.5-155.6%1.08%92.5-0.79-0.53x
DCGDecmil Grp1-233.3%0%82-3.54-3.54x
EAFEvans P Asia5.2-233.3%0%11900.00x
IZZiShares China LCap120.24-233.3%2.79%5862-198.99-1.65x
IVEiShares MSCI EAFE228.56-233.3%2.5%9368-1875.33-8.20x
IPCImperial Pacific6.25-233.3%5.48%114-4.83-0.77x
IJPiShares MSCI Japan99.68-233.3%1.18%8056-361.2-3.62x
IEMiShares MSCI Em Mkt101.95-233.3%1.81%5933-1950.25-19.13x
FXLFlexiGroup7.7-233.3%3.45%223-2.8-0.36x
FBUFletcher Bld6.54-233.3%2.97%584-23.39-3.58x
ETFUBS IQ Au Qual81.94-233.3%3.03%2131-905.16-11.05x
EPWERM Power11.5-233.3%4.97%151-32.86-2.86x
ABWAurora Absolute Ret1.14-100.3%6.3%37-15.73-13.80x
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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.