Is Amundi (EPA:AMUN) A Smart Choice For Dividend Investors?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. In the past 3 years Amundi (EPA:AMUN) has returned an average of 4.00% per year to investors in the form of dividend payouts. Should it have a place in your portfolio? Let’s take a look at Amundi in more detail. Check out our latest analysis for Amundi

Here’s how I find good dividend stocks

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?

• Does it consistently pay out dividends without missing a payment of significantly cutting payout?

• Has dividend per share amount increased over the past?

• Can it afford to pay the current rate of dividends from its earnings?

• Will it have the ability to keep paying its dividends going forward?

ENXTPA:AMUN Historical Dividend Yield June 23rd 18

Does Amundi pass our checks?

The current trailing twelve-month payout ratio for the stock is 71.92%, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 63.65%, leading to a dividend yield of around 5.26%. However, EPS should increase to €4.48, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment.

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. The reality is that it is too early to consider Amundi as a dividend investment. It has only been consistently paying dividends for 3 years, however, standard practice for reliable payers is to look for a 10-year minimum track record.

Compared to its peers, Amundi generates a yield of 4.01%, which is on the low-side for Capital Markets stocks.

Next Steps:

Keeping in mind the dividend characteristics above, Amundi is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. There are three pertinent factors you should look at:

1. Future Outlook: What are well-informed industry analysts predicting for AMUN’s future growth? Take a look at our free research report of analyst consensus for AMUN’s outlook.

2. Valuation: What is AMUN 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 AMUN is currently mispriced by the market.

3. 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 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.