Gas Natural paid a total dividend of 913 million EUR last year, for a market capitalization of 17,677 millions.
Dividend per share of Gas Natural is 0.92 EUR, and his stock market price 17.82 EUR.
According to the chart, where dividend yield is displayed, Gas Natural has a dividend yield of 5.18%, which is higher than the amount offered by both the market average and companies from Spain. It is also bigger than average of Utilities 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 Gas Natural to maintain his current dividend of EUR 0.92 per share, an amount that accounts for 5.18%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Gas Natural payout on ernings is currently 50.55%, which is higher than the market average, and companies of Utilities industry, which are 40.24% and 49.39% respectively. Both figures show that Gas Natural 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 Gas Natural is EUR 3.56 per share, which is higher than the dividend per share paid by the company of EUR 0.92, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Gas Natural, compared againt world market average, Spain companies, Utilities industry and Gas Water and Multiutilities sector companies. You might also need to check full financial report of Gas Natural.
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