Société Générale Société anonyme's (EPA:GLE) Upcoming Dividend Will Be Larger Than Last Year's

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. Despite this raise, the dividend yield of 2.9% is only a modest boost to shareholder returns.

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 36% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

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Société Générale Société anonyme's Earnings Will Easily Cover The Distributions

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

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 records don't necessarily translate into future results, the company's payout ratio of 25% also shows that Société Générale Société anonyme is able to comfortably pay dividends.

Looking forward, EPS is forecast to rise by 72.5% over the next 3 years. The future payout ratio could be 27% over that time period, according to analyst estimates, which is a good look for the future of the dividend.

View our latest analysis for Société Générale Société anonyme

Dividend Volatility

While the company has been paying a dividend for a long time, it has cut the dividend at least once in the last 10 years. Since 2015, the annual payment back then was €1.20, compared to the most recent full-year payment of €1.09. Dividend payments have shrunk at a rate of less than 1% per annum over this time frame. A company that decreases its dividend over time generally isn't what we are looking for.

We Could See Société Générale Société anonyme's Dividend Growing

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 7.7% per year over the past five 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.

In Summary

Overall, it's great to see the dividend being raised and that it is still 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.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. As an example, we've identified 1 warning sign for Société Générale Société anonyme that you should be aware of before investing. 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.