Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Over the past 10 years, Caisse Régionale de Crédit Agricole Mutuel Alpes Provence (EPA:CRAP) has returned an average of 5.00% per year to shareholders in terms of dividend yield. Does Caisse Régionale de Crédit Agricole Mutuel Alpes Provence tick all the boxes of a great dividend stock? Below, I’ll take you through my analysis. View out our latest analysis for Caisse Régionale de Crédit Agricole Mutuel Alpes Provence
How I analyze a dividend stock
If you are a dividend investor, you should always assess these five key metrics:
- Is its annual yield among the top 25% of dividend-paying companies?
- Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
- Has the amount of dividend per share grown over the past?
- Is is able to pay the current rate of dividends from its earnings?
- Will the company be able to keep paying dividend based on the future earnings growth?
How does Caisse Régionale de Crédit Agricole Mutuel Alpes Provence fare?
Caisse Régionale de Crédit Agricole Mutuel Alpes Provence has a trailing twelve-month payout ratio of 32.26%, which means that the dividend is covered by earnings. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward.
Reliablity is an important factor for dividend stocks, particularly for income investors who want a strong track record of payment and a positive outlook for future payout. Not only have dividend payouts from Caisse Régionale de Crédit Agricole Mutuel Alpes Provence fallen over the past 10 years, it has also been highly volatile during this time, with drops of over 25% in some years. This means that dividend hunters should probably steer clear of the stock, at least for now until the track record improves.
Compared to its peers, Caisse Régionale de Crédit Agricole Mutuel Alpes Provence has a yield of 3.15%, which is on the low-side for Banks stocks.
After digging a little deeper into Caisse Régionale de Crédit Agricole Mutuel Alpes Provence’s yield, it’s easy to see why you should be cautious investing in the company just for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three relevant aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for CRAP’s future growth? Take a look at our free research report of analyst consensus for CRAP’s outlook.
- Historical Performance: What has CRAP’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- 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 pass 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.