Great-West Lifeco paid a total dividend of 1,361 million CAD last year, for a market capitalization of 35,161 millions.
Dividend per share of Great-West Lifeco is 1.38 CAD, and his stock market price 35.66 CAD.
According to the chart, where dividend yield is displayed, Great-West Lifeco has a dividend yield of 3.88%, which is higher than the amount offered by both the market average and companies from Canada. 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 Great-West Lifeco to maintain his current dividend of CAD 1.38 per share, an amount that accounts for 3.88%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Great-West Lifeco payout on ernings is currently 46.78%, which is higher than the market average, and companies of Financials industry, which are 40.24% and 44.35% respectively. Both figures show that Great-West Lifeco 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 Great-West Lifeco is CAD 5.17 per share, which is higher than the dividend per share paid by the company of CAD 1.38, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Great-West Lifeco, compared againt world market average, Canada companies, Financials industry and Life Insurance sector companies. You might also need to check full financial report of Great-West Lifeco.
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