Terna Dividend yield

 Price  6.90
 Dividend  0.30
 Earnings  0.43
 Cash-flow  0.42
 Book value  2.30
 Equity  2.28

Terna is part of Electricity business, which is part of Utilities industry. Terna is a company from Italy, and his stocks are publicly traded.

Terna paid a total dividend of 602 million EUR last year, for a market value of 13,848 millions (Market Cap 9,711 millions). Dividend per share of Terna is 0.30 EUR, and his stock market price 6.90 EUR.

According to the chart below, where dividend yield is displayed, Terna has a dividend yield of 4.33%, which is higher than the amount offered by both the market average and companies from Italy. It is also bigger than average of Utilities 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 Terna dividend yield with other Electricity companies or firms from Italy.

Dividend yield of Terna

Terna Dividend Payout

About the ability of Terna to maintain his current dividend of EUR 0.30 per share, an amount that accounts for 4.33%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Terna payout on ernings is currently 69.77%, which is higher than the market average, and companies of Utilities industry, which are 41.22% and 52.83% respectively. Both figures show that Terna 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 Terna is EUR 0.42 per share, which is higher than the dividend per share paid by the company of EUR 0.30, so the company generates enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Terna, compared againt world market average, Italy companies, Utilities industry and Electricity sector companies.

Terna payout

Terna Dividend History

Year Yield  EUR  Paypout  Shares* 

*In millions

Terna Stock performance

Finally, last moth Terna showed a return of -5.60% compared to a worldwide -2.30% average, and a -0.70% of Utilities firms. Over the last year, the company obtained a -3.00% versus a worldwide performance of a -5.85%. More detailed information can be seen in the following graph for Italy and Electricity firms.

Terna stock and market return