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 Co194.32-129.4%0%601900.00x
RVLRussell Aust Value132.37818.7%0%303000.00x
RSMRussell Au Semi Bond35.7234-0.0%0%203400.00x
RGBRussell Au Govt Bnd50.04-0.0%0%207000.00x
RDVRussell High Div134.31323.6%0%299500.00x
RCBRussell Au Sel Corp Bnd66.52880.0%0%201100.00x
PRYPrimary Health CareHealth Care Equipment & Services 10.6100.0%3.19%332-99.1-9.35x
PNWPacific Star NetMedia 1.65100.0%6.35%26-10.1-6.12x
MCPMcPhersonsConsumer Durables & Apparel 8100.0%5.71%140-8.8-1.10x
KOVKorvestCapital Goods 13100.0%5.86%222-14.4-1.11x
SLFSPDR Prop FundNot Applic 53.32040.2%4.32%1234-81.81-1.53x
SRXSirtex MedicalPharmaceuticals300.0%1.98%1513-45.5-1.52x
VHYVngd Aust High Yield353.636-77.5%0%610200.00x
VGBVngd Aust Govt Bond60.729-99.0%0%487100.00x
VEUVngd All-World ex-US102.4013.9%0%685100.00x
VTSVngd US Total Market183.948-1.4%0%1676100.00x
VAPVngd Aust Property110.508-95.0%0%779500.00x
URFUS Masters Res PropReal Estate 50.0%5.62%178-18.48-3.70x
TAHTabcorp HldgsConsumer Services 25100.0%5.84%428-2.5-0.10x
SWMSeven West MediaMedia 4100.0%6.15%65-49.4-12.35x
SWLSeymour WhyteCapital Goods 44.5100.0%0%137-1.54-0.03x
IZZiShares China LCapNot Applic 97.32267.2%1.66%5846-198.99-2.04x
IVEiShares MSCI EAFENot Applic 185.2933.9%2.08%8870-1875.33-10.12x
CABCabcharge AustCommercial & Professional Services 100100.0%11.94%167.5-75.2-0.75x
AZJAurizon HldgsTransportation 8.950.0%4.57%492-9.2-1.03x
AUPAurora PropNot Applic 40.70.0%9.04%45000.00x
AUFAsian Masters FundDiversified Financials 6.1100.0%1.62%136-1.05-0.17x
AODAurora Div Inc TrNot Applic 1.2624.6%8.09%64.5-3.83-3.04x
AMPAMPInsurance 28.590.0%5.65%504-14.3-0.50x
AIBAurora Global Inc TrDiversified Financials 5.850.0%11.7%50-10.48-1.79x
ABWAurora Absolute RetNot Applic 3.180.0%7.07%45-13.24-4.16x
AADArdent Leisure GrpConsumer Services 30.0%1.55%194-13.37-4.46x
CTNContango MicrocapDiversified Financials 6.650.0%7.02%94-8.4-1.27x
CUPCountplusCommercial & Professional Services 5100.0%10.37%67.5-0.1-0.02x
EPWERM PowerUtilities 7100.0%5.43%129-0.44-0.06x
IPCImperial PacificDiversified Financials 6.25100.0%5.81%107.5-1.6-0.26x
ILUIluka ResMaterials 6100.0%0.91%986-67.9-11.32x
ILBiShares Gov Infl83.8948-53.9%0.89%11350-53.6-0.64x
IJPiShares MSCI JapanNot Applic 104.2246.8%1.42%7304-361.2-3.47x
IHKiShares MSCI HKNot Applic 68.13223.7%2.1%3227-224.84-3.30x
IGBiShares Treasury221.078-63.0%2.71%10174-110.45-0.50x
IEMiShares MSCI Em MktNot Applic 65.7737.3%1.11%5907-1950.25-29.65x
GUDGUD HldgsConsumer Durables & Apparel 46100.0%4.29%1073-8.57-0.19x
GAPGale PacificConsumer Durables & Apparel 20.0%5.26%38-2.71-1.36x
VASVngd Aust Shares200.195-104.4%3.95%74201.770.01x
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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.