Royal Mail Dividend yield

 Price  3.29
 Dividend  0.17
 Earnings  0.78
 Cash-flow  1.18
 Book value  4.70
 Equity  5.34

Royal Mail is part of Industrial Transportation business, which is part of Industrials industry. Royal Mail is a company from UK, and his stocks are publicly traded.

Royal Mail paid a total dividend of 167 million GBP last year, for a market value of 3,227 millions (Market Cap 2,953 millions). Dividend per share of Royal Mail is 0.17 GBP, and his stock market price 3.29 GBP.

According to the chart below, where dividend yield is displayed, Royal Mail has a dividend yield of 5.08%, which is higher than the amount offered by both the market average and companies from UK. It is also bigger than average of Industrials 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 Royal Mail dividend yield with other Industrial Transportation companies or firms from UK.

Dividend yield of Royal Mail

Royal Mail Dividend Payout

About the ability of Royal Mail to maintain his current dividend of GBP 0.17 per share, an amount that accounts for 5.08%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Royal Mail payout on ernings is currently 21.79%, which is lower than the market average and companies of Industrials industry, which are 38.25% and 34.62% respectively. Both figures lead us to believe that there is confidence that Royal Mailcan 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 Royal Mail is GBP 1.18 per share, which is higher than the dividend per share paid by the company of GBP 0.17, 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 Mail, compared againt world market average, UK companies, Industrials industry and Industrial Transportation sector companies.

Royal Mail payout

Royal Mail Dividend History

Year Yield  GBP  Paypout  Shares* 

*In millions

Royal Mail Stock performance

Finally, last moth Royal Mail showed a return of -16.20% compared to a worldwide 1.12% average, and a 1.26% of Industrials firms. Over the last year, the company obtained a -32.10% versus a worldwide performance of a 5.73%. More detailed information can be seen in the following graph for UK and Industrial Transportation firms.

Royal Mail stock and market return