Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative (EPA:CCN) Has Announced That Its Dividend Will Be Reduced To €3.27

Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative (EPA:CCN) is reducing its dividend from last year's comparable payment to €3.27 on the 15th of May. This means that the annual payment is 3.7% of the current stock price, which is lower than what the rest of the industry is paying.

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Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's Earnings Will Easily Cover The Distributions

Even a low dividend yield can be attractive if it is sustained for years on end.

Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. Past distributions do not necessarily guarantee future ones, but Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's payout ratio of 25% is a good sign as this means that earnings decently cover dividends.

Unless the company can turn things around, EPS could fall by 1.8% over the next year. If the dividend continues along the path it has been on recently, we estimate the future payout ratio could be 24%, which is definitely feasible to continue.

See 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. Doing the maths, this is a decline of about 4.8% per year. Declining dividends isn't generally what we look for as they can indicate that the company is running into some challenges.

Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative May Find It Hard To Grow The Dividend

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. Although it's important to note that Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's earnings per share has basically not grown from where it was five years ago, which could erode the purchasing power of the dividend over time.

Our Thoughts On Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative's Dividend

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. This company is not in the top tier of income providing stocks.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For instance, we've picked out 1 warning sign for Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative that investors should take into consideration. Is Caisse Régionale de Crédit Agricole Mutuel de Normandie-Seine Société coopérative not quite the opportunity you were looking for? Why not check out our selection of top 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.