Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV) Passed Our Checks, And It's About To Pay A €3.08 Dividend

Some investors rely on dividends for growing their wealth, and if you're one of those dividend sleuths, you might be intrigued to know that Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative (EPA:CIV) is about to go ex-dividend in just 3 days. The ex-dividend date is usually set to be two business days 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. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative investors that purchase the stock on or after the 13th of May will not receive the dividend, which will be paid on the 15th of May.

The company's next dividend payment will be €3.08 per share, on the back of last year when the company paid a total of €3.08 to shareholders. Based on the last year's worth of payments, Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative has a trailing yield of 3.9% on the current stock price of €78.99. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. So we need to investigate whether Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative can afford its dividend, and if the dividend could grow.

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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. That's why it's good to see Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative paying out a modest 29% of its earnings.

Companies that pay out less in dividends than they earn in profits generally have more sustainable dividends. The lower the payout ratio, the more wiggle room the business has before it could be forced to cut the dividend.

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

Click here to see how much of its profit Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative paid out over the last 12 months.

Have Earnings And Dividends Been Growing?

Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. With that in mind, we're not enthused to see that Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative's earnings per share have remained effectively flat over the past five years. It's better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative's dividend payments are broadly unchanged compared to where they were 10 years ago.

The Bottom Line

From a dividend perspective, should investors buy or avoid Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative? Earnings per share have been flat in recent years, although Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative reinvests more than half its earnings in the business, which could suggest there are some growth projects that have not yet reached fruition. In summary, Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative appears to have some promise as a dividend stock, and we'd suggest taking a closer look at it.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. For example - Caisse régionale de Crédit Agricole Mutuel d'Ille-et-Vilaine Société coopérative has 1 warning sign we think you should be aware of.

If you're in the market for strong dividend payers, we recommend checking 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.