Three Days Left Until Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée (EPA:CRAV) Trades Ex-Dividend

Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée (EPA:CRAV) is about to trade ex-dividend in the next three days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Meaning, you will need to purchase Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée's shares before the 14th of May to receive the dividend, which will be paid on the 16th of May.

The company's upcoming dividend is €3.53 a share, following on from the last 12 months, when the company distributed a total of €3.53 per share 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 3.6% on the current share price of €99.21. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. So we need to check whether the dividend payments are covered, and if earnings are growing.

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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 Atlantique Vendée paying out a modest 30% of its earnings.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

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

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

Have Earnings And Dividends Been Growing?

When earnings decline, dividend companies become much harder to analyse and own safely. 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 discomforted by Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée's 5.3% per annum decline in earnings in the past five years. Ultimately, when earnings per share decline, the size of the pie from which dividends can be paid, shrinks.

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 Atlantique Vendée's dividend payments per share have declined at 2.6% per year on average over the past 10 years, which is uninspiring. It's never nice to see earnings and dividends falling, but at least management has cut the dividend rather than potentially risk the company's health in an attempt to maintain it.

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 are down over the past five years, although it has the cushion of a low payout ratio, which would suggest a cut to the dividend is relatively unlikely. It doesn't appear an outstanding opportunity, but could be worth a closer look.

If you want to look further into Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée, it's worth knowing the risks this business faces. Our analysis shows 1 warning sign for Caisse régionale de Crédit Agricole Mutuel Atlantique Vendée and you should be aware of this before buying any shares.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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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.