Generali paid a total dividend of 1,120 million EUR last year, for a market capitalization of 22,935 millions.
Dividend per share of Generali is 0.72 EUR, and his stock market price 14.74 EUR.
According to the chart, where dividend yield is displayed, Generali has a dividend yield of 4.88%, which is higher than the amount offered by both the market average and companies from Italy. 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 Generali to maintain his current dividend of EUR 0.72 per share, an amount that accounts for 4.88%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Generali payout on ernings is currently 47.37%, which is higher than the market average, and companies of Financials industry, which are 40.24% and 44.35% respectively. Both figures show that Generali 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 Generali is EUR 11.34 per share, which is higher than the dividend per share paid by the company of EUR 0.72, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Generali, compared againt world market average, Italy companies, Financials industry and Nonlife Insurance sector companies. You might also need to check full financial report of Generali.
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