|GBP per share|
GlaxoSmithKline paid a total dividend of 3,890 million GBP last year, for a market capitalization of 80,126 millions. Dividend per share of GlaxoSmithKline is 0.80 GBP, and his stock market price 16.48 GBP.
According to the chart below, where dividend yield is displayed, GlaxoSmithKline has a dividend yield of 4.85%, which is higher than the amount offered by both the market average and companies from UK. It is also bigger than average of Health Care 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 GlaxoSmithKline to maintain his current dividend of GBP 0.80 per share, an amount that accounts for 4.85%, we should study its payout ratio both on earnings and on cash-flows (see chart below). GlaxoSmithKline payout on ernings is currently 266.67%, which is higher than the market average, and companies of Health Care industry, which are 40.24% and 33.63% respectively. Both figures show that GlaxoSmithKline 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 GlaxoSmithKline is GBP 1.21 per share, which is higher than the dividend per share paid by the company of GBP 0.80, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of GlaxoSmithKline, compared againt world market average, UK companies, Health Care industry and Pharmaceuticals and Biotechnology sector companies. You might also need to check full financial report of GlaxoSmithKline.
GlaxoSmithKlinensume. India. Consumer Goods.Glencore. UK. Basic Materials.Glenmark Pharmaceuti. India. Health Care.Global Brands Group. Hong-Kong. Consumer Goods.Global Logistic Prop. Singapore. Financials.Global Mediacom Tbk. Indonesia. Consumer Services.
Glanbia. Ireland. Consumer Goods.GKN. UK. Consumer Goods.Gjensidige Forsikrin. Norway. Financials.Givaudan N. Switzerland. Basic Materials.Gilead Sciences. USA. Health Care.Giant Manufacturing. Taiwan. Consumer Goods.
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