|CHF per share|
GAM Holdings paid a total dividend of 102 million CHF last year, for a market capitalization of 1,672 millions. Dividend per share of GAM Holdings is 0.65 CHF, and his stock market price 10.65 CHF.
According to the chart below, where dividend yield is displayed, GAM Holdings has a dividend yield of 6.10%, which is higher than the amount offered by both the market average and companies from Switzerland. 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.
About the ability of GAM Holdings to maintain his current dividend of CHF 0.65 per share, an amount that accounts for 6.10%, we should study its payout ratio both on earnings and on cash-flows (see chart below). GAM Holdings payout on ernings is currently 72.22%, which is higher than the market average, and companies of Financials industry, which are 40.42% and 42.07% respectively. Both figures show that GAM Holdings 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 latter amount the one which can be distributed to shareholders. Cash flow per share of GAM Holdings is CHF 1.28 per share, which is higher than the dividend per share paid by the company of CHF 0.65, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of GAM Holdings, compared againt world market average, Switzerland companies, Financials industry and Financial Services sector companies. You might also need to check full financial report of GAM Holdings.
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