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
Franking Yield Price
per Share
Star Rating
VLCVngd MSCI Au Large Co211.164-183.5%0%618400.00x
RVLRussell Aust Value133.252-159.7%0%303700.00x
RSMRussell Au Semi Bond39.4697-75.1%0%203400.00x
RGBRussell Au Govt Bnd49.7883-73.1%0%206900.00x
RDVRussell High Div149.023-31.5%0%304600.00x
RCBRussell Au Sel Corp Bnd64.5409-66.3%0%200700.00x
PRYPrimary Health Care10.6100.0%2.99%354-99.1-9.35x
SLFSPDR Prop Fund53.5017-56.8%4.22%1268-81.81-1.53x
SRXSirtex Medical300.0%1.67%1800-45.5-1.52x
VHYVngd Aust High Yield365.27-117.7%0%603800.00x
VGBVngd Aust Govt Bond61.22-233.3%0%485000.00x
VEUVngd All-World ex-US111.721-107.2%0%717700.00x
VTSVngd US Total Market197.338-88.2%0%1783000.00x
VAPVngd Aust Property60.52-233.3%0%806900.00x
URFUS Masters Res Prop5-233.3%5.95%168-18.48-3.70x
TAHTabcorp Hldgs25100.0%4.84%517-2.5-0.10x
SWMSeven West Media4100.0%7.27%55-49.4-12.35x
IZZiShares China LCap118.629-194.7%1.79%6386-198.99-1.68x
IVEiShares MSCI EAFE200.948-95.7%2.15%9187-1875.33-9.33x
ITWiShares MSCI Taiwan113.09-233.3%2.27%4806-904.9-8.00x
AZJAurizon Hldgs8.950.0%4.96%454-9.2-1.03x
AUPAurora Prop38.75-53.9%8.91%43500.00x
AUFAsian Masters Fund6.1100.0%1.58%139.5-1.05-0.17x
AODAurora Div Inc Tr1.3-153.8%8.05%64-3.83-2.95x
AIBAurora Global Inc Tr5.55-51.7%11.1%50-10.48-1.89x
ABWAurora Absolute Ret3.03-53.1%5.32%57-13.24-4.37x
AADArdent Leisure Grp3-155.6%1.47%204-13.37-4.46x
CABCabcharge Aust100100.0%10.08%198.5-75.2-0.75x
EPWERM Power7100.0%4.44%157.5-0.44-0.06x
GAPGale Pacific20.0%5.48%36.5-2.71-1.36x
IPCImperial Pacific6.25100.0%5.48%114-1.6-0.26x
ILUIluka Res6100.0%0.62%965-67.9-11.32x
ILBiShares Gov Infl85.0717-120.9%0.94%11499-53.6-0.63x
IJPiShares MSCI Japan83.208-124.3%1.03%7909-361.2-4.34x
IHKiShares MSCI HK123.096-148.7%3.67%3271-224.84-1.83x
IGBiShares Treasury214.693-119.9%2.68%10156-110.45-0.51x
IEMiShares MSCI Em Mkt143.083-122.7%1.53%6247-1950.25-13.63x
GUDGUD Hldgs46100.0%3.8%1212-8.57-0.19x
VASVngd Aust Shares214.267-170.5%3.51%76511.770.01x
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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.