Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative (EPA:CRLO) Will Pay A Larger Dividend Than Last Year At €2.83

Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative's (EPA:CRLO) periodic dividend will be increasing on the 6th of June to €2.83, with investors receiving 2.5% more than last year's €2.76. This takes the annual payment to 3.9% of the current stock price, which unfortunately is below what the industry is paying.

Check out our latest analysis for Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative

Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative's Payment Expected To Have Solid Earnings Coverage

Even a low dividend yield can be attractive if it is sustained for years on end.

Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire 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 33%, which means that Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative would be able to pay its last dividend without pressure on the balance sheet.

Looking forward, EPS could fall by 7.4% if the company can't turn things around from the last few years. If the dividend continues along recent trends, we estimate the future payout ratio could be 38%, which we consider to be quite comfortable, with most of the company's earnings left over to grow the business in the future.

Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative Has A Solid Track Record

The company has an extended history of paying stable dividends. The most recent annual payment of €2.76 is about the same as the annual payment 10 years ago. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

Dividend Growth Is Doubtful

The company's investors will be pleased to have been receiving dividend income for some time. Let's not jump to conclusions as things might not be as good as they appear on the surface. Over the past five years, it looks as though Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire Société coopérative's EPS has declined at around 7.4% a year. Declining earnings will inevitably lead to the company paying a lower dividend in line with lower profits.

In Summary

In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The earnings coverage is acceptable for now, but with earnings on the decline we would definitely keep an eye on the payout ratio. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

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 2 warning signs for Caisse Régionale de Crédit Agricole Mutuel Loire Haute-Loire 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.