Rational paid a total dividend of 83 million EUR last year, for a market capitalization of 4,620 millions.
Dividend per share of Rational is 7.52 EUR, and his stock market price 420.00 EUR.
According to the chart, where dividend yield is displayed, Rational has a dividend yield of 1.79%, lower than the amount offered by both the market average and companies from Germany. It is also lower than average of Industrials industry. This low dividend yield might has several explanations: company overpriced, expanding their business,...
About the ability of Rational to maintain his current dividend of EUR 7.52 per share, an amount that accounts for 1.79%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Rational payout on ernings is currently 69.63%, which is higher than the market average, and companies of Industrials industry, which are 40.24% and 35.56% respectively. Both figures show that Rational 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 Rational is EUR 12.54 per share, which is higher than the dividend per share paid by the company of EUR 7.52, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Rational, compared againt world market average, Germany companies, Industrials industry and Industrial Engineering sector companies. You might also need to check full financial report of Rational.
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