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
WPLWoodside PetEnergy 105.0997.2%3.31%3168-48.48-0.46x
RCBRussell Au Sel Corp Bnd55.17-2.4%0%203200.00x
QREBetaShares Resources1.710.0%3.23%444-45.54-26.63x
PRTPrime Media GrpMedia 3.7100.0%12.54%29.5-25.5-6.89x
PRGProgrammed MaintCommercial & Professional Services 8.5100.0%4.62%184-37.8-4.45x
OZRSPDR 200 Resources12.782.2%1.59%810-81.42-6.37x
OZFSPDR 200 Financials119.013.9%5.54%2149-93.91-0.79x
OSHOil SearchEnergy 6.697.3%0.96%696-20.74-3.10x
NHCNew Hope CorpEnergy 4100.0%2.47%162-6.5-1.63x
MINMineral ResourcesMaterials 42100.0%1.79%1173-13.31-0.32x
MFFMagellan FlagshipDiversified Financials 185.0%1.05%191-2.06-2.06x
IZZiShares China LCapNot Applic 104.898.2%2.29%4714-198.99-1.90x
IXPiShares Glb Telecom264.637.6%0%812300.00x
IXJiShares Glb Health183.567.3%0%1309100.00x
IXIiShares Glb Cons241.657.4%0%1274700.00x
IVViShares S&P 500Not Applic 502.235.9%1.62%31500-1819.82-3.62x
RCORoyalco ResMaterials 1100.0%4.88%20.5-1.43-1.43x
RDVRussell High Div105.310.0%0%301000.00x
RGBRussell Au Govt Bnd67.250.0%0%209000.00x
WOWWoolworthsFood & Staples Retailing 77100.0%3.23%2385-97.73-1.27x
VTSVngd US Total Market194.344.8%0%1611500.00x
VLCVngd MSCI Au Large Co216.033.6%0%604200.00x
VHYVngd Aust High Yield304.15-3.0%0%606000.00x
VGBVngd Aust Govt Bond64.95-11.7%0%487100.00x
VEUVngd All-World ex-US70.325.7%0%607800.00x
ZGLZicom GrpCapital Goods 0.450.0%3.21%14-0.96-2.13x
VAPVngd Aust Property174.47-28.1%0%803900.00x
URFUS Masters Res PropReal Estate 50.0%4.83%207-8.61-1.72x
SYISPDR MSCI Au Sel HDY127.742.9%4.38%2918-178.17-1.39x
SWKSwick Min ServicesMaterials 0.4100.0%1.51%26.5-1.3-3.25x
SFYSPDR 50 FundNot Applic 138.780.0%4.81%5340-112.86-0.81x
RVLRussell Aust Value135.850.0%0%306300.00x
RSMRussell Au Semi Bond37.910.0%0%204800.00x
ITWiShares MSCI TaiwanNot Applic 78.4810.8%0%406300.00x
ISGiShares MSCI SingNot Applic 81.2810.4%0%277300.00x
IRUiShares Russell 2000Not Applic 207.663.8%0%1889000.00x
DCGDecmil GrpCapital Goods 4100.0%3.79%105.5-34.5-8.63x
CDMCadence CapitalNot Applic 8100.0%7.35%122.5-11.6-1.45x
CCVCash ConvertersRetailing 3100.0%9.09%33-2.3-0.77x
CAMClime CapitalNot Applic 3.6100.0%5.45%88-2.46-0.68x
BPTBeach EnergyEnergy 0.5100.0%0.61%82-39.56-79.12x
BHPBHP BillitonMaterials 39.89105.2%1.62%2463-161.59-4.05x
AWCAluminaMaterials 3.8594.8%3.52%179.5-1-0.26x
AVGAust VintageFood1.5100.0%3%50-0.85-0.57x
AUPAurora PropNot Applic 44.390.0%8.46%52500.00x
AUFAsian Masters FundDiversified Financials 2.2100.0%1.82%121-0.97-0.44x
AODAurora Div Inc TrNot Applic 1.444.5%6.06%71.5-7.45-5.32x
ALQALSCommercial & Professional Services 11.549.6%2%575-56.81-4.94x
AIBAurora Global Inc TrDiversified Financials 6.430.0%8.14%79-0.77-0.12x
AGFAMP Capital China16.740.0%47.15%35.5-92.58-5.53x
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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.