Manila Electric paid a total dividend of 52,779 million PHP last year, for a market capitalization of 321,254 millions.
Dividend per share of Manila Electric is 46.79 PHP, and his stock market price 284.80 PHP.
According to the chart, where dividend yield is displayed, Manila Electric has a dividend yield of 16.43%, which is higher than the amount offered by both the market average and companies from Philippines. 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 Manila Electric to maintain his current dividend of PHP 46.79 per share, an amount that accounts for 16.43%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Manila Electric payout on ernings is currently 271.09%, which is higher than the market average, and companies of Utilities industry, which are 40.24% and 49.39% respectively. Both figures show that Manila Electric 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 Manila Electric is PHP 36.51 per share, which is lower than the dividend per share paid by the company of PHP 46.79, so the company does not generate enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Manila Electric, compared againt world market average, Philippines companies, Utilities industry and Electricity sector companies. You might also need to check full financial report of Manila Electric.
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