|GBP per share|
RSA Insurance Group paid a total dividend of 163 million GBP last year, for a market capitalization of 5,964 millions. Dividend per share of RSA Insurance Group is 0.16 GBP, and his stock market price 5.87 GBP.
According to the chart below, where dividend yield is displayed, RSA Insurance Group has a dividend yield of 2.73%, which is similar to the amount offered by both the market average and companies from UK. However, it is lower than the average of Financials industry. The company should be deeply analized because dividend yields should be similar among companies from the same industry unless they carry an opposite strategy.
About the ability of RSA Insurance Group to maintain his current dividend of GBP 0.16 per share, an amount that accounts for 2.73%, we should study its payout ratio both on earnings and on cash-flows (see chart below). RSA Insurance Group payout on ernings is currently 160.00%, which is higher than the market average, and companies of Financials industry, which are 39.68% and 44.73% respectively. Both figures show that RSA Insurance Group 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 RSA Insurance Group is GBP -0.18 per share, which is lower than the dividend per share paid by the company of GBP 0.16, 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 RSA Insurance Group, compared againt world market average, UK companies, Financials industry and Nonlife Insurance sector companies. You might also need to check full financial report of RSA Insurance Group.
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