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
AADArdent Leisure Grp30.0%1.49%201-6.14-2.05x
RCBRussell Au Sel Corp Bnd54.530.0%0%200300.00x
QBEQBE Insurance Grp2630.0%2.49%1046-117.31-4.51x
PRYPrimary Health Care10.9100.0%2.86%381-98.9-9.07x
PPGPro-Pac Packaging2100.0%4.82%41.5-0.31-0.16x
PFGPrime Financial0.9100.0%7.2%12.5-0.06-0.07x
ORIOrica48-97.2%2.66%1802-10-0.21x
KOVKorvest8100.0%3.72%215-0.08-0.01x
IZZiShares China LCap118.6290.0%1.77%6430-198.99-1.68x
RDVRussell High Div130.070.0%0%292100.00x
RGBRussell Au Govt Bnd36.130.0%0%206000.00x
VLCVngd MSCI Au Large Co236.589.4%0%625400.00x
VHYVngd Aust High Yield294.35-15.9%0%581600.00x
VGBVngd Aust Govt Bond83.5-134.2%0%483400.00x
VEUVngd All-World ex-US68.470.0%0%734200.00x
VAPVngd Aust Property130.51-205.6%0%804500.00x
URFUS Masters Res Prop50.0%6.21%161-3.76-0.75x
TAHTabcorp Hldgs23.5100.0%5.13%458-7-0.30x
RSMRussell Au Semi Bond33.660.0%0%204100.00x
IVEiShares MSCI EAFE200.9480.0%2.07%9525-1875.33-9.33x
ITWiShares MSCI Taiwan113.090.0%2.23%4888-904.9-8.00x
AZJAurizon Hldgs1450.0%5.31%431-1.44-0.10x
AUPAurora Prop36.950.0%9.15%40400.00x
AUFAsian Masters Fund2.2100.0%1.72%128-1.2-0.55x
APZAspen Grp7.10.0%4.82%95.5-1.27-0.18x
AODAurora Div Inc Tr1.27-20.5%8.37%60-0.81-0.64x
AIBAurora Global Inc Tr5.140.0%13.01%39.5-15.25-2.97x
AGGAnglogold Ashanti1.230.0%0.53%230-58.94-47.92x
ABWAurora Absolute Ret2.850.0%6.06%47-15.73-5.52x
CAJCapitol Health0.4100.0%1.38%29-0.75-1.88x
FXLFlexiGroup7.7100.0%3.62%213-2.8-0.36x
IPEIPE3.750.0%77.34%6.4-0.92-0.25x
IMFIMF Bentham3100.0%2.43%288-1.72-0.57x
ILUIluka Res31100.0%2.61%1188-41-1.32x
IJPiShares MSCI Japan83.2080.0%1%8139-361.2-4.34x
IHKiShares MSCI HK123.0960.0%3.48%3452-224.84-1.83x
IGOIndependence Grp2100.0%0.41%485-0.05-0.03x
IEMiShares MSCI Em Mkt98.71190.0%1.55%6193-1950.25-19.76x
GAPGale Pacific20.0%5.41%37-3.14-1.57x
VTSVngd US Total Market195.60.0%0%1871200.00x
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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.