Telefonica Dividend yield




   EUR/share 
 Price  3.39
 Dividend  0.15
 Earnings  1.78
 Cash-flow  1.78
 Book value  2.61
 Equity  2.24

Telefonica is part of Fixed Line Telecommunications business, which is part of Telecommunications industry. Telefonica is a company from Spain, and his stocks are publicly traded.

Telefonica paid a total dividend of 845 million EUR last year, for a market value of 19,106 millions (Market Cap 16,874 millions). Dividend per share of Telefonica is 0.15 EUR, and his stock market price 3.39 EUR.

According to the chart below, where dividend yield is displayed, Telefonica has a dividend yield of 4.43%, which is higher than the amount offered by both the market average and companies from Spain. It is also bigger than average of Telecommunications 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 Telefonica dividend yield with other Fixed Line Telecommunications companies or firms from Spain.

Dividend yield of Telefonica

Telefonica Dividend Payout

About the ability of Telefonica to maintain his current dividend of EUR 0.15 per share, an amount that accounts for 4.43%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Telefonica payout on ernings is currently 8.43%, which is lower than the market average and companies of Telecommunications industry, which are 41.22% and 48.17% respectively. Both figures lead us to believe that there is confidence that Telefonicacan 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 Telefonica is EUR 1.78 per share, which is higher than the dividend per share paid by the company of EUR 0.15, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Telefonica, compared againt world market average, Spain companies, Telecommunications industry and Fixed Line Telecommunications sector companies.

Telefonica payout

Telefonica Dividend History

Year Yield  EUR  Paypout  Shares* 
Present4.43%0.158.43%5,636
20210.00%0.000.00%5,815
202011.21%0.3648.65%5,624
20196.42%0.4032.79%5,127
20185.45%0.4032.79%5,126
20174.92%0.4035.40%5,123
20169.12%0.7260.50%5,004
20156.38%0.7559.52%4,758

*In millions

Telefonica Stock performance

Finally, last moth Telefonica showed a return of -5.60% compared to a worldwide -2.30% average, and a -2.41% of Telecommunications firms. Over the last year, the company obtained a -9.30% versus a worldwide performance of a -5.85%. More detailed information can be seen in the following graph for Spain and Fixed Line Telecommunications firms.

Telefonica stock and market return