Direct Line Insuranc Dividend yield




   GBP/share 
 Price  3.19
 Dividend  0.22
 Earnings  0.33
 Cash-flow  0.32
 Book value  1.88
 Equity  1.94

Direct Line Insuranc is part of Nonlife Insurance business, which is part of Financials industry. Direct Line Insuranc is a company from UK, and his stocks are publicly traded.

Direct Line Insuranc paid a total dividend of 300 million GBP last year, for a market value of 4,354 millions (Market Cap 4,353 millions). Dividend per share of Direct Line Insuranc is 0.22 GBP, and his stock market price 3.19 GBP.

According to the chart below, where dividend yield is displayed, Direct Line Insuranc has a dividend yield of 6.83%, which is higher than the amount offered by both the market average and companies from UK. It is also bigger than average of Financials industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.

In addition, you should compare Direct Line Insuranc dividend yield with other Nonlife Insurance companies or firms from UK.

Dividend yield of Direct Line Insuranc

Direct Line Insuranc Dividend Payout

About the ability of Direct Line Insuranc to maintain his current dividend of GBP 0.22 per share, an amount that accounts for 6.83%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Direct Line Insuranc payout on ernings is currently 66.67%, which is higher than the market average, and companies of Financials industry, which are 38.57% and 41.00% respectively. Both figures show that Direct Line Insuranc can have problems to keep with his present dividend yield.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Direct Line Insuranc is GBP 0.32 per share, which is higher than the dividend per share paid by the company of GBP 0.22, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Direct Line Insuranc, compared againt world market average, UK companies, Financials industry and Nonlife Insurance sector companies.

Direct Line Insuranc payout

Direct Line Insuranc Dividend History

Year Yield  GBP  Paypout  Shares* 
Present6.83%0.2266.67%1,365
20196.78%0.2155.26%1,375
20186.46%0.2152.50%1,375
20174.32%0.1770.83%1,375
20164.06%0.1429.79%1,375
20153.45%0.1443.75%1,375

*In millions

Direct Line Insuranc Stock performance

Finally, last moth Direct Line Insuranc showed a return of 7.80% compared to a worldwide 3.99% average, and a 3.02% of Financials firms. Over the last year, the company obtained a 2.10% versus a worldwide performance of a 6.65%. More detailed information can be seen in the following graph for UK and Nonlife Insurance firms.

Direct Line Insuranc stock and market return