Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative (EPA:CRLA) Has Announced That Its Dividend Will Be Reduced To €2.66

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's (EPA:CRLA) dividend is being reduced by 2.9% to €2.66 per share on 17th of April, in comparison to last year's comparable payment of €2.74. Based on this payment, the dividend yield will be 4.5%, which is lower than the average for the industry.

View our latest analysis for Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's Dividend Forecasted To Be Well Covered By Earnings

If it is predictable over a long period, even low dividend yields can be attractive.

Caisse Régionale de Crédit Agricole Mutuel du Languedoc 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 30%, which means that Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative would be able to pay its last dividend without pressure on the balance sheet.

Over the next year, EPS could expand by 0.4% if recent trends continue. If the dividend continues along recent trends, we estimate the future payout ratio will be 29%, which is in the range that makes us comfortable with the sustainability of the dividend.

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative Has A Solid Track Record

The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the dividend has gone from €2.34 total annually to €2.74. This implies that the company grew its distributions at a yearly rate of about 1.6% over that duration. Although we can't deny that the dividend has been remarkably stable in the past, the growth has been pretty muted.

Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative May Find It Hard To Grow The Dividend

Investors could be attracted to the stock based on the quality of its payment history. Although it's important to note that Caisse Régionale de Crédit Agricole Mutuel du Languedoc 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. If Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative is struggling to find viable investments, it always has the option to increase its payout ratio to pay more to shareholders.

We Really Like Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative's Dividend

Overall, we think that Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative could be a great option for a dividend investment, although we would have preferred if the dividend wasn't cut this year. By reducing the dividend, pressure will be taken off the balance sheet, which could help the dividend to be consistent in the future. Taking this all into consideration, this looks like it could be a good dividend opportunity.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. As an example, we've identified 1 warning sign for Caisse Régionale de Crédit Agricole Mutuel du Languedoc Société coopérative that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield 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.