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
NSCNAOS Small Cap Opp5.5100.0%9.17%60-11.51-2.09x
RDCRedcape Hotel Grp2.92710.0%0%107.500.00x
RDVRussell High Div217.30246.7%7.53%2885-190.52-0.88x
RYDRyder Capital488.5%2.4%125-0.02-0.01x
SECSpheria Emerging Co6100.0%0%171.5-19.4-3.23x
SFYSPDR 50 Fund284.63374.5%4.92%5788-93.05-0.33x
SKISpark Infrastructure160.0%7.02%228-5.75-0.36x
SKTSky Network TV14.05760.0%12.11%116-59.3-4.22x
SNCSandon Capital Invest788.5%7.78%90-0.7-0.10x
SSOSPDR Small Ords34.301264.3%2.29%1499-186.23-5.43x
STWSPDR 200 Fund256.36278.7%4.35%5887-174.4-0.68x
QREBetaShares Au Resources23.663680.9%3.73%634-27.99-1.18x
QFNBetaShares Au Financials48.407266.8%4.42%1094-54.05-1.12x
NWSNews Corp19.75150.0%1.18%1675-300.09-15.19x
OZFSPDR 200 Financials89.457189.4%4.58%1955-186.71-2.09x
OZRSPDR 200 Resources32.054295.0%3.58%1154-12.12-0.38x
PAFPM Capital Asian494.3%4.15%96.5-13.15-3.29x
PAIPlatinum Asia8100.0%7.26%110.2-7.97-1.00x
PGFPM Capital Global3.6100.0%3.16%114-6.76-1.88x
PICPerpetual Equity6.488.5%6.46%99-3.79-0.59x
PMCPlatinum Capital12100.0%5.68%158.5-8.3-0.69x
PPGPro-Pac Packaging2100.0%13.33%15-19.71-9.86x
SXLSthn Cross Media7.75100.0%6.4%121-20.31-2.62x
SYISPDR MSCI Au Sel HDY172.27580.5%5.94%2899-175.57-1.02x
VHYVngd Aust High Yield457.10938.0%0%588500.00x
VIFVngd Intl FI Idx Hdg128.8610.0%0%490100.00x
VLCVngd MSCI Au Large Co321.87854.6%0%645500.00x
VTSVngd US Total Market245.6220.0%0%2099200.00x
WAAWAM Active5.8100.0%5.8%100-3.31-0.57x
WAMWAM Capital15.5100.0%7.83%198-7.75-0.50x
WAXWAM Research9.6100.0%7.77%123.5-7.09-0.74x
WICWestoz Inv6100.0%5.83%103-5.6-0.93x
WLEWAM Leaders5.15100.0%4.72%109-2.76-0.54x
WMIWAM Microcap6.25100.0%0%117-7.35-1.18x
WPPWPP AuNZ6.3100.0%11.35%55.5-2-0.32x
VGSVngd MSCI Intl Sh208.6510.0%0%735900.00x
VGEVngd FTSE Emerging130.6630.0%0%666000.00x
TGP360 Capital Grp70.0%6.19%97-4.9-0.70x
TOPThorney Opp1.5688.5%2.4%65-4.99-3.20x
UBAUBS IQ MSCI Au87.993981.2%4.13%2128-57.56-0.65x
URFUS Masters Res Prop100.0%9.26%108-11-1.10x
VAEVngd FTSE Asia Ex Jpn170.4460.0%0%655500.00x
VAFVngd Aust FI Idx137.0850.0%0%508700.00x
VAPVngd Aust Property724.6330.4%0%867000.00x
VCFVngd Intl Cr Sec H158.7140.0%0%483100.00x
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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.