The 3 Best Dividend Shares of the CAC 40: Upside potential of + 30% to + 40%

Faced with remuneration from passbooks and other fixed-rate investments reduced painfully by the zero-rate policy of central banks, income-seeking investors have no choice but to turn to dividend-paying stocks .

Remember that the dividend is the share of profits that goes to shareholders. However, companies are not required to pay dividends to their shareholders. Conversely, some stocks are popular with investors mainly for their strong dividends. However, there are some very high dividend stocks that are unreliable at all.

In this analysis, we have therefore selected the 3 best dividend-paying stocks among the CAC 40 stocks, securities deemed safer than small caps.

Orange action

  • Dividend Yield: 8.25%
  • Change over 52 weeks: + 1.19%

The action of the French telecommunications specialist has fallen sharply since June, but the daily chart suggests that the stock has found a floor around 9.20 euros.

Orange action

Thus, a rebound could be imminent, and the threshold of 10 euros seems to be an interesting first target. Under the threshold of 9.20 euros, the next support will be around 8.6 euros.

Orange share: Potential gain of + 40.25%

Regarding analysts’ forecasts, it should be noted that of the 27 analysts who follow the Orange share, 14 recommend to buy, 10 to keep, and 3 to sell. In addition, the average target for these analysts over a 12-month horizon is 12.3 euros, which implies a potential increase of 32%.

If we add to this the dividend yield of 8.25%, the 12-month gain potential for the Orange share is + 40.25%.

TotalEnergies action

  • Dividend Yield: 7.08%
  • Change over 52 weeks: + 33%

The share of the oil company Total has been on an uptrend since the beginning of August, as seen in the graph below.

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TotalEnergies action

However, the action is approaching a downtrend line visible since March, and currently located at 40 euros, which could slow its progression from current prices. If a correction takes place, the downside risk will however remain limited, thanks to solid support towards 38.5 euros.

TotalEnergies share: Potential return of + 30%

Finally, with regard to the analysts’ opinion, it should be noted that 19 of the 25 professionals who follow the TotalEnergies action recommend the purchase. Six of them recommend keeping, and none are inviting to sell.

In addition, their average target is 57.15 euros, which implies a potential increase of 22.8% at 12 months. If we add to this the dividend of 7.08%, the TotalEnergies share offers a potential return of 30%.

Credit Agricole action

  • Dividend Yield: 6.92%
  • Change over 52 weeks: + 57%

Shares of Crédit Agricole, one of the 3 CAC 40 banks, recently started to rebound to long-term support at 11 euros, as seen in the chart below.

Credit Agricole action

In addition, the Crédit Agricole share has just passed above its 200-day moving average. If the rise continues, the next targets are at 1.24-12.6 euros, then at 13.5 euros.

Crédit Agricole share: Potential gain of 34%

Regarding the opinion of analysts, it should be noted first of all that none recommends the sale of the Crédit Agricole share. On the other hand, we can count 18 which advise to buy the share, and 5 to keep it.

Knowing that the average objective of these analysts is 15.16 euros, the upside potential at 12 months is more than 27%, to which must be added the dividend yield, for a potential gain of 34% over 52 weeks.

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