I posted this previously but I will re-post it and it answers your question.
Veolia has an attractive yield, but with earnings and Free Cash Flow yields only slightly higher at 8%, Veolia may have trouble maintaining it’s dividend if the fierce competitive environment and low waste volumes persist or worsen, with 84 cents of every dollar earned being paid out as dividends. With a Debt to Equity ratio of almost 200%, the company is quite vulnerable to further drops in revenue, so a near term dividend cut is likely ..........
From what I understand the company forecasted no growth for the rest of the year as they restructure the problem units..and then a slow return to growth thereafter. Presuming this is true I dont see why the dividend would get cut. They have already been taking huge chunks out of their debt with the current profitability.
Now if margins depreciatte and they lose contracts then all bets are off. Very cautiously buying more here.
I doubt the dividend will be eliminated but will be substantially reduced to reflect current operating problems. If they successfully pull off the restructuring then in a few years the dividend should rise back up towards recent levels. The stock currently discounts a lot of bad news and a big cut to the dividend. It wouldn't surprise me if the payout is cut in half, but that's just a wild guess and at this time no one knows what it'll be. I don't expect much from the stock near term but in a few years it could be trading much higher than a lowly $15.