Pendal warns Sonic Healthcare faces dividend cut risk as earnings come under pressure

• 13 ASX100 companies qualify as “Yield Royalty,” having avoided dividend cuts for five straight years with only one cut in 10 years.
• Dividend certainty supports higher valuations, but only a minority of qualifying stocks yield more than the broader market.
• Sonic Healthcare’s earnings have fallen about 60% since FY22, pushing its dividend payout ratio above 100% in FY24 and FY25.
• Persistent labor cost pressures could force Sonic Healthcare to cut its dividend; increased debt limits its ability to fund further increases.
• Medibank’s forecast 80% dividend payout ratio is supported by a conservative capital position, providing a buffer against tougher conditions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Pendal Group Limited published the original content used to generate this news brief on November 09, 2026, and is solely responsible for the information contained therein.