RMB Holdings paid a total dividend of 4,165 million ZAR last year, for a market capitalization of 91,738 millions.
Dividend per share of RMB Holdings is 2.95 ZAR, and his stock market price 64.97 ZAR.
According to the chart, where dividend yield is displayed, RMB Holdings has a dividend yield of 4.54%, which is higher than the amount offered by both the market average and companies from South Africa. 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 RMB Holdings to maintain his current dividend of ZAR 2.95 per share, an amount that accounts for 4.54%, we should study its payout ratio both on earnings and on cash-flows (see chart below). RMB Holdings payout on ernings is currently 54.93%, which is higher than the market average, and companies of Financials industry, which are 40.24% and 44.35% respectively. Both figures show that RMB Holdings 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 RMB Holdings is ZAR 3.02 per share, which is higher than the dividend per share paid by the company of ZAR 2.95, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of RMB Holdings, compared againt world market average, South Africa companies, Financials industry and Banks sector companies. You might also need to check full financial report of RMB Holdings.
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