Royal DSM paid a total dividend of 292 million EUR last year, for a market capitalization of 10,443 millions.
Dividend per share of Royal DSM is 1.65 EUR, and his stock market price 59.00 EUR.
According to the chart, where dividend yield is displayed, Royal DSM has a dividend yield of 2.80%, which is higher than the amount offered by both the market average and companies from Netherlands. It is also bigger than average of Basic Materials 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 Royal DSM to maintain his current dividend of EUR 1.65 per share, an amount that accounts for 2.80%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Royal DSM payout on ernings is currently 147.32%, which is higher than the market average, and companies of Basic Materials industry, which are 40.24% and 42.47% respectively. Both figures show that Royal DSM 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 Royal DSM is EUR 3.41 per share, which is higher than the dividend per share paid by the company of EUR 1.65, so the company generates enough cash to maintain his dividend in the future.
The following figure shows payout ratios over earnings and cashflow of Royal DSM, compared againt world market average, Netherlands companies, Basic Materials industry and Chemicals sector companies. You might also need to check full financial report of Royal DSM.
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