Absa Group Limited Dividend yield




   ZAR/share 
 Price  126.09
 Dividend  11.25
 Earnings  9.34
 Cash-flow  -22.93
 Book value  140.10
 Equity  135.36

Absa Group Limited is part of Banks business, which is part of Financials industry. Absa Group Limited is a company from South Africa, and his stocks are publicly traded.

Absa Group Limited paid a total dividend of 9,540 million ZAR last year, for a market value of 106,924 millions (Market Cap 90,455 millions). Dividend per share of Absa Group Limited is 11.25 ZAR, and his stock market price 126.09 ZAR.

According to the chart below, where dividend yield is displayed, Absa Group Limited has a dividend yield of 8.92%, 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.

In addition, you should compare Absa Group Limited dividend yield with other Banks companies or firms from South Africa.

Dividend yield of Absa Group Limited

Absa Group Limited Dividend Payout

About the ability of Absa Group Limited to maintain his current dividend of ZAR 11.25 per share, an amount that accounts for 8.92%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Absa Group Limited payout on ernings is currently 120.45%, which is higher than the market average, and companies of Financials industry, which are 38.17% and 41.32% respectively. Both figures show that Absa Group Limited 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 last amount the one which can be distributed to shareholders. Cash flow per share of Absa Group Limited is ZAR -22.93 per share, which is lower than the dividend per share paid by the company of ZAR 11.25, 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 Absa Group Limited, compared againt world market average, South Africa companies, Financials industry and Banks sector companies.

Absa Group Limited payout

Absa Group Limited Dividend History

Year Yield  ZAR  Paypout  Shares* 
Present8.92%11.25120.45%848
20209.39%11.2561.01%848
20197.54%11.2664.86%848
20186.70%10.8463.65%848

*In millions

Absa Group Limited Stock performance

Finally, last moth Absa Group Limited showed a return of 3.90% compared to a worldwide 4.24% average, and a 4.05% of Financials firms. Over the last year, the company obtained a 68.10% versus a worldwide performance of a 53.49%. More detailed information can be seen in the following graph for South Africa and Banks firms.

Absa Group Limited stock and market return