Gérard Perrier Industrie's (EPA:PERR) Dividend Will Be €2.30

Gérard Perrier Industrie S.A.'s (EPA:PERR) investors are due to receive a payment of €2.30 per share on 16th of June. This makes the dividend yield 2.9%, which will augment investor returns quite nicely.

We've discovered 1 warning sign about Gérard Perrier Industrie. View them for free.

Gérard Perrier Industrie's Projected Earnings Seem Likely To Cover Future Distributions

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. The last dividend was quite easily covered by Gérard Perrier Industrie's earnings. This indicates that quite a large proportion of earnings is being invested back into the business.

Over the next year, EPS is forecast to expand by 5.2%. Assuming the dividend continues along recent trends, we think the payout ratio could be 46% by next year, which is in a pretty sustainable range.

Check out our latest analysis for Gérard Perrier Industrie

Gérard Perrier Industrie 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 €0.92 total annually to €2.30. This works out to be a compound annual growth rate (CAGR) of approximately 9.6% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios.

We Could See Gérard Perrier Industrie's Dividend Growing

Investors who have held shares in the company for the past few years will be happy with the dividend income they have received. Gérard Perrier Industrie has impressed us by growing EPS at 7.5% per year over the past five years. The lack of cash flows does make us a bit cautious though, especially when it comes to the future of the dividend.

Gérard Perrier Industrie Looks Like A Great Dividend Stock

In summary, it is good to see that the dividend is staying consistent, and we don't think there is any reason to suspect this might change over the medium term. 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.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Gérard Perrier Industrie that investors need to be conscious of moving forward. Is Gérard Perrier Industrie 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.