Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée (EPA:CRAV) Will Pay A €3.88 Dividend In Three Days

By
Simply Wall St
Published
May 08, 2022
ENXTPA:CRAV
Source: Shutterstock

It looks like Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée (EPA:CRAV) is about to go ex-dividend in the next three days. The ex-dividend date is one business day before the record date, which is the cut-off date for shareholders to be present on the company's books to be eligible for a dividend payment. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. In other words, investors can purchase Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée's shares before the 12th of May in order to be eligible for the dividend, which will be paid on the 16th of May.

The company's next dividend payment will be €3.88 per share. Last year, in total, the company distributed €3.88 to shareholders. Calculating the last year's worth of payments shows that Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée has a trailing yield of 4.4% on the current share price of €87.98. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. As a result, readers should always check whether Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée has been able to grow its dividends, or if the dividend might be cut.

Check out our latest analysis for Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée

If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. That's why it's good to see Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée paying out a modest 25% of its earnings.

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.

Click here to see how much of its profit Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée paid out over the last 12 months.

historic-dividend
ENXTPA:CRAV Historic Dividend May 8th 2022

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. If earnings fall far enough, the company could be forced to cut its dividend. It's not encouraging to see that Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée's earnings are 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.

We'd also point out that Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée issued a meaningful number of new shares in the past year. It's hard to grow dividends per share when a company keeps creating new shares.

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée has seen its dividend decline 1.3% per annum on average over the past 10 years, which is not great to see.

Final Takeaway

Should investors buy Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée for the upcoming dividend? Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée's earnings per share have not grown at all in recent years, although we like that it is paying out a low percentage of its earnings. 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.

So if you want to do more digging on Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée, you'll find it worthwhile knowing the risks that this stock faces. Our analysis shows 2 warning signs for Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée that we strongly recommend you have a look at before investing in the company.

A common investing mistake is buying the first interesting stock you see. Here you can find a full list of high-yield dividend stocks.

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