Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative (EPA:CCN) Will Pay A Smaller Dividend Than Last Year

Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's (EPA:CCN) dividend is being reduced from last year's payment covering the same period to €3.27 on the 15th of May. This means that the dividend yield is 3.3%, which is a bit low when comparing to other companies in the industry.

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Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's Dividend Forecasted To Be Well Covered By Earnings

It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable.

Having distributed dividends for at least 10 years, Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative has a long history of paying out a part of its earnings to shareholders. Based on Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's last earnings report, the payout ratio is at a decent 25%, meaning that the company is able to pay out its dividend with a bit of room to spare.

EPS is set to fall by 1.8% over the next 12 months if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio could be 25%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.

Check out our latest analysis for Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. Since 2015, the annual payment back then was €5.33, compared to the most recent full-year payment of €3.27. This works out to be a decline of approximately 4.8% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.

Dividend Growth May Be Hard To Achieve

Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Unfortunately, Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year.

In Summary

Overall, it's not great to see that the dividend has been cut, but this might be explained by the payments being a bit high previously. While Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative is earning enough to cover the dividend, we are generally unimpressed with its future prospects. We don't think Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative is a great stock to add to your portfolio if income is your focus.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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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.