Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV) Is Increasing Its Dividend To €3.08

The board of Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV) has announced that it will be paying its dividend of €3.08 on the 15th of May, an increased payment from last year's comparable dividend. This takes the annual payment to 3.9% of the current stock price, which unfortunately is below what the industry is paying.

Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine 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 d'Ille-et-Vilaine Société coopérative has a long history of paying out dividends, with its current track record at a minimum of 10 years. Taking data from its last earnings report, calculating for the company's payout ratio shows 29%, which means that Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, earnings per share could rise by 0.6% over the next year if the trend from the last few years continues. Assuming the dividend continues along recent trends, we think the future payout ratio could be 28% by next year, which is in a pretty sustainable range.

See our latest analysis for Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. Since 2015, the annual payment back then was €2.78, compared to the most recent full-year payment of €3.08. This means that it has been growing its distributions at 1.0% per annum over that time. We're glad to see the dividend has risen, but with a limited rate of growth and fluctuations in the payments the total shareholder return may be limited.

The Dividend's Growth Prospects Are Limited

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 d'Ille-et-Vilaine 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. Earnings growth is slow, but on the plus side, the dividend payout ratio is low and dividends could grow faster than earnings, if the company decides to increase its payout ratio.

In Summary

In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The payout ratio looks good, but unfortunately the company's dividend track record isn't stellar. The dividend looks okay, but there have been some issues in the past, so we would be a little bit cautious.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. 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 d'Ille-et-Vilaine 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.