Yahoo Finance Credit Agricole SA's Dividend Analysis
Exploring the Sustainability and Growth of Credit Agricole SA's Dividends
Credit Agricole SA (CRARY) recently announced a dividend of $0.57 per share, payable on 2024-06-17, with the ex-dividend date set for 2024-05-28. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Credit Agricole SA's dividend performance and assess its sustainability.
What Does Credit Agricole SA Do?
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Credit Agricole S.A. is majority-owned by a group of 39 mutually owned, regional French banks, and together, they form the Credit Agricole Group, the largest cooperative bank globally. Credit Agricole S.A. houses all of Credit Agricole Group's activities, excluding the core French retail and commercial banking operations and including corporate and investment banking, its insurance operations, its international operations, notably in Italy, LCL, a separately branded French retail bank, and Credit Agricole S.A.'s majority interest in individually listed asset manager Amundi. Credit Agricole S.A. also acts as the central bank for the group.
A Glimpse at Credit Agricole SA's Dividend History
Credit Agricole SA has maintained a consistent dividend payment record since 2021. Dividends are currently distributed on a yearly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Credit Agricole SA's Dividend Yield and Growth
As of today, Credit Agricole SA currently has a 12-month trailing dividend yield of 6.91% and a 12-month forward dividend yield of 6.95%. This suggests an expectation of increased dividend payments over the next 12 months. Based on Credit Agricole SA's dividend yield and five-year growth rate, the 5-year yield on cost of Credit Agricole SA stock as of today is approximately 6.91%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Credit Agricole SA's dividend payout ratio is 0.57. Credit Agricole SA's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Credit Agricole SA's profitability 6 out of 10 as of 2024-03-31, suggesting fair profitability. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Credit Agricole SA's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Credit Agricole SA's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Credit Agricole SA's revenue has increased by approximately 7.40% per year on average, a rate that outperforms approximately 51.91% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Credit Agricole SA's earnings increased by approximately 14.70% per year on average, a rate that outperforms approximately 52.03% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 2.60%, which outperforms approximately 29.43% of global competitors.
Next Steps
With a robust dividend history and promising growth metrics, Credit Agricole SA appears well-positioned to continue its dividend payments. Investors should consider the dividend growth rate, payout ratio, profitability, and growth metrics when evaluating the sustainability of future dividends. For those seeking to explore more high-dividend yield opportunities, GuruFocus Premium users can utilize the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
