Exploring the Sustainability and Prospects of Mercedes-Benz Group AG's Dividends
Mercedes-Benz Group AG (MBGYY, Financial) recently announced a dividend of $1.44 per share, set to be payable on 2024-05-29, with the ex-dividend date on 2024-05-09. As investors anticipate this upcoming payment, it's crucial to delve into the company's dividend history, yield, and growth rates. Utilizing data from GuruFocus, this analysis will provide insights into the dividend performance of Mercedes-Benz Group AG and evaluate its sustainability.
What Does Mercedes-Benz Group AG Do?
Headquartered in Stuttgart, Germany, Mercedes-Benz Group manufactures premium and luxury passenger vehicles and commercial vans. Its brands include Mercedes-Benz, AMG, and Maybach. Additionally, Mercedes-Benz Mobility offers vehicle financing and mobility services like ride-hailing and car sharing to dealers and customers. Notably, Mercedes holds 9.74% of Aston Martin and 9.55% of Beijing Automotive Group. Major shareholders include Beijing Automotive Group with 9.98% and Kuwait Investment Authority holding 4.9% of the shares.
A Glimpse at Mercedes-Benz Group AG's Dividend History
Mercedes-Benz Group AG has maintained a consistent dividend payment record since 2017, distributing dividends annually. Below is a chart illustrating the annual Dividends Per Share to track historical trends.
Breaking Down Mercedes-Benz Group AG's Dividend Yield and Growth
Currently, Mercedes-Benz Group AG boasts a 12-month trailing dividend yield of 7.30% and a forward dividend yield of 7.32%, indicating an expected increase in dividend payments over the next year. Over the past three years, the annual dividend growth rate was an impressive 79.40%, though it moderates to 10.40% over a five-year period, and further to 2.90% over the past decade. The 5-year yield on cost for Mercedes-Benz Group AG stock is approximately 11.97% today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, sitting at 0.41 as of the latest data, suggests that Mercedes-Benz Group AG retains a substantial portion of its earnings, which supports future growth and resilience against downturns. The company's profitability rank is 7 out of 10, indicating strong earnings potential relative to its peers, underscored by consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
Mercedes-Benz Group AG's growth rank is also favorable at 7 out of 10, suggesting solid growth prospects. The company's revenue per share and 3-year revenue growth rate indicate a robust revenue model, despite underperforming 54.99% of global competitors. Furthermore, the 3-year EPS growth rate and 5-year EBITDA growth rate further affirm the company's capacity for sustaining dividends.
Conclusion: A Robust Dividend Profile
The analysis of Mercedes-Benz Group AG's dividend payments, growth rates, payout ratio, profitability, and growth metrics paints a picture of a robust dividend profile. For investors seeking high-dividend yield stocks, GuruFocus offers tools like the High Dividend Yield Screener to discover similar investment opportunities.
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.
