Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative's (EPA:CRTO) Dividend Will Be Increased To €3.21

Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative (EPA:CRTO) has announced that it will be increasing its periodic dividend on the 24th of April to €3.21, which will be 0.6% higher than last year's comparable payment amount of €3.19. Although the dividend is now higher, the yield is only 3.8%, which is below the industry average.

View our latest analysis for Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative

Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative's Dividend Forecasted To Be Well Covered By Earnings

The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock.

Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative has established itself as a dividend paying company with over 10 years history of distributing earnings to shareholders. While past records don't necessarily translate into future results, the company's payout ratio of 18% also shows that Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative is able to comfortably pay dividends.

Looking forward, earnings per share could rise by 16.2% over the next year if the trend from the last few years continues. If the dividend continues on this path, the future payout ratio could be 16% by next year, which we think can be pretty sustainable going forward.

Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative Has A Solid Track Record

Even over a long history of paying dividends, the company's distributions have been remarkably stable. The dividend has gone from an annual total of €2.75 in 2015 to the most recent total annual payment of €3.19. This implies that the company grew its distributions at a yearly rate of about 1.5% over that duration. 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.

The Dividend Looks Likely To Grow

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative has impressed us by growing EPS at 16% per year over the past three years. A low payout ratio and decent growth suggests that the company is reinvesting well, and it also has plenty of room to increase the dividend over time.

Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative Looks Like A Great Dividend Stock

In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. However, there are other things to consider for investors when analysing stock performance. Now, if you want to look closer, it would be worth checking out our free research on Caisse Régionale de Crédit Agricole Mutuel de la Touraine et du Poitou Société Coopérative management tenure, salary, and performance. 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.