Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Historically, Caisse régionale de Crédit Agricole Nord de France (EPA:CNF) has paid dividends to shareholders, and these days it yields 5.0%. Should it have a place in your portfolio? Let’s take a look at Caisse régionale de Crédit Agricole Nord de France in more detail.
5 checks you should use to assess a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
- Is it paying an annual yield above 75% of dividend payers?
- Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
- Has dividend per share risen in the past couple of years?
- Does earnings amply cover its dividend payments?
- Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
How does Caisse régionale de Crédit Agricole Nord de France fare?
Caisse régionale de Crédit Agricole Nord de France has a trailing twelve-month payout ratio of 38.2%, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting lower payout ratio of 33.8%, leading to a dividend yield of 5.5%. However, EPS should increase to €3.12, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.
When considering the sustainability of dividends, it is also worth checking the cash flow of a company. Cash flow is important because companies with strong cash flow can usually sustain higher payout ratios.
If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. Not only have dividend payouts from Caisse régionale de Crédit Agricole Nord de France fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. These characteristics do not bode well for income investors seeking reliable stream of dividends.
Compared to its peers, Caisse régionale de Crédit Agricole Nord de France produces a yield of 5.0%, which is on the low-side for Banks stocks.
With these dividend metrics in mind, I definitely rank Caisse régionale de Crédit Agricole Nord de France as a strong income stock, and is worth further research for anyone who considers dividends an important part of their portfolio strategy. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CNF’s future growth? Take a look at our free research report of analyst consensus for CNF’s outlook.
- Valuation: What is CNF worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CNF is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.