LVMH Moët Hennessy - Louis Vuitton Société Européenne (EPA:MC) Has Announced A Dividend Of €7.00

The board of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) has announced that it will pay a dividend on the 27th of April, with investors receiving €7.00 per share. This means the dividend yield will be fairly typical at 1.5%.

View our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne

LVMH Moët Hennessy - Louis Vuitton Société Européenne's Dividend Is Well Covered By Earnings

We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. However, LVMH Moët Hennessy - Louis Vuitton Société Européenne's earnings easily cover the dividend. This means that most of its earnings are being retained to grow the business.

Looking forward, earnings per share is forecast to rise by 36.3% over the next year. If the dividend continues on this path, the payout ratio could be 35% by next year, which we think can be pretty sustainable going forward.

Dividend Volatility

The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of €2.60 in 2013 to the most recent total annual payment of €12.00. This works out to be a compound annual growth rate (CAGR) of approximately 17% a year over that time. Dividends have grown rapidly over this time, but with cuts in the past we are not certain that this stock will be a reliable source of income in the future.

The Dividend Looks Likely To Grow

Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. It's encouraging to see that LVMH Moët Hennessy - Louis Vuitton Société Européenne has been growing its earnings per share at 21% a year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock.

We Really Like LVMH Moët Hennessy - Louis Vuitton Société Européenne's Dividend

Overall, we like to see the dividend staying consistent, and we think LVMH Moët Hennessy - Louis Vuitton Société Européenne might even raise payments in the future. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock.

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. Earnings growth generally bodes well for the future value of company dividend payments. See if the 27 LVMH Moët Hennessy - Louis Vuitton Société Européenne analysts we track are forecasting continued growth with our free report on analyst estimates for the company. 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.