Air Arabia Dividend yield




   AED/share 
 Price  1.26
 Dividend  0.09
 Earnings  -0.04
 Cash-flow  0.18
 Book value  0.97
 Equity  1.05

Air Arabia is part of Travel and Leisure business, which is part of Consumer Services industry. Air Arabia is a company from U. Arab Emirates, and his stocks are publicly traded.

Air Arabia paid a total dividend of 420 million AED last year, for a market value of 5,880 millions (Market Cap 2,881 millions). Dividend per share of Air Arabia is 0.09 AED, and his stock market price 1.26 AED.

According to the chart below, where dividend yield is displayed, Air Arabia has a dividend yield of 7.14%, which is higher than the amount offered by both the market average and companies from U. Arab Emirates. It is also bigger than average of Consumer Services 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 Air Arabia dividend yield with other Travel and Leisure companies or firms from U. Arab Emirates.

Dividend yield of Air Arabia

Air Arabia Dividend Payout

About the ability of Air Arabia to maintain his current dividend of AED 0.09 per share, an amount that accounts for 7.14%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Air Arabia payout on ernings is currently -225.00%, which is lower than the market average and companies of Consumer Services industry, which are 38.17% and 23.35% respectively. Both figures lead us to believe that there is confidence that Air Arabiacan maintain his current dividend.

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 Air Arabia is AED 0.18 per share, which is higher than the dividend per share paid by the company of AED 0.09, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Air Arabia, compared againt world market average, U. Arab Emirates companies, Consumer Services industry and Travel and Leisure sector companies.

Air Arabia payout

Air Arabia Dividend History

Year Yield  AED  Paypout  Shares* 
Present7.14%0.09-225.00%4,667
20207.03%0.0942.86%4,667
20196.21%0.10-76.92%4,667
20189.80%0.1071.43%4,667
20175.65%0.0763.64%4,667
20167.09%0.0981.82%4,667
20157.44%0.0975.00%4,667

*In millions

Air Arabia Stock performance

Finally, last moth Air Arabia showed a return of 0.00% compared to a worldwide 4.24% average, and a 2.83% of Consumer Services firms. Over the last year, the company obtained a 32.50% versus a worldwide performance of a 53.49%. More detailed information can be seen in the following graph for U. Arab Emirates and Travel and Leisure firms.

Air Arabia stock and market return