Regular readers will know that we love our dividends at Simply Wall St, which is why it's exciting to see Caisse Regionale de Credit Agricole Mutuel Toulouse 31 (EPA:CAT31) is about to trade ex-dividend in the next 3 days. The ex-dividend date is usually set to be one business day before the record date which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves two full business days. So if you miss that date, you would not show up on the company's books on the record date. Accordingly, Caisse Regionale de Credit Agricole Mutuel Toulouse 31 investors that purchase the stock on or after the 19th of April will not receive the dividend, which will be paid on the 21st of April.
The company's next dividend payment will be €4.03 per share, on the back of last year when the company paid a total of €4.03 to shareholders. Calculating the last year's worth of payments shows that Caisse Regionale de Credit Agricole Mutuel Toulouse 31 has a trailing yield of 5.3% on the current share price of €76.4. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Caisse Regionale de Credit Agricole Mutuel Toulouse 31 paid out a comfortable 26% of its profit last year.
When a company paid out less in dividends than it earned in profit, this generally suggests its dividend is affordable. The lower the % of its profit that it pays out, the greater the margin of safety for the dividend if the business enters a downturn.
Have Earnings And Dividends Been Growing?
Companies that aren't growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. That explains why we're not overly excited about Caisse Regionale de Credit Agricole Mutuel Toulouse 31's flat earnings over the past five years. Better than seeing them fall off a cliff, for sure, but the best dividend stocks grow their earnings meaningfully over the long run.
Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Caisse Regionale de Credit Agricole Mutuel Toulouse 31 has delivered 1.2% dividend growth per year on average over the past 10 years.
To Sum It Up
Has Caisse Regionale de Credit Agricole Mutuel Toulouse 31 got what it takes to maintain its dividend payments? Caisse Regionale de Credit Agricole Mutuel Toulouse 31's earnings per share are basically flat over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. At best we would put it on a watch-list to see if business conditions improve, as it doesn't look like a clear opportunity right now.
If you want to look further into Caisse Regionale de Credit Agricole Mutuel Toulouse 31, it's worth knowing the risks this business faces. To help with this, we've discovered 2 warning signs for Caisse Regionale de Credit Agricole Mutuel Toulouse 31 (1 doesn't sit too well with us!) that you ought to be aware of before buying the shares.
If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.