Société Générale Société anonyme (EPA:GLE) Has Announced That It Will Be Increasing Its Dividend To €1.09

Société Générale Société anonyme's (EPA:GLE) dividend will be increasing from last year's payment of the same period to €1.09 on 28th of May. Although the dividend is now higher, the yield is only 2.7%, which is below the industry average.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Société Générale Société anonyme's stock price has increased by 51% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

See our latest analysis for Société Générale Société anonyme

Société Générale Société anonyme's Dividend Forecasted To Be Well Covered By Earnings

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

Société Générale Société anonyme has a long history of paying out dividends, with its current track record at a minimum of 10 years. While past data isn't a guarantee for the future, Société Générale Société anonyme's latest earnings report puts its payout ratio at 25%, showing that the company can pay out its dividends comfortably.

Looking forward, EPS is forecast to rise by 74.1% over the next 3 years. The future payout ratio could be 26% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the dividend has gone from €1.20 total annually to €1.09. Dividend payments have shrunk at a rate of less than 1% per annum over this time frame. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.

The Dividend Has Growth Potential

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Société Générale Société anonyme has impressed us by growing EPS at 7.4% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Société Générale Société anonyme's prospects of growing its dividend payments in the future.

Our Thoughts On Société Générale Société anonyme's Dividend

In summary, it's great to see that the company can raise the dividend and keep it in a sustainable range. The dividend has been at reasonable levels historically, but that hasn't translated into a consistent payment. The payment isn't stellar, but it could make a decent addition to a dividend portfolio.

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for Société Générale Société anonyme that investors should take into consideration. Is Société Générale Société anonyme not quite the opportunity you were looking for? Why not check out our selection of top 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.