Current Report: Mercedes Benz Group

Image Source: PixabayMercedes-Benz Group (MBGYY) makes premium and luxury passenger vehicles and commercial vans. Brands include Mercedes-Benz, AMG, and Maybach.Mercedes-Benz Mobility provides the company’s dealers and its customers with vehicle financing as well as mobility services in ride-hailing, car sharing, and charging.Mercedes owns 9.74% of Aston Martin and 9.55% of Beijing Automotive Group. Through Tenaciou3 Prospect Investment, Li Shufu, chair of Chinese automaker Geely, owns 9.69% of Mercedes-Benz.Other major shareholders include Beijing Automotive Group at 9.98% and Kuwait Investment Authority at 4.9% (6.8% before the sale of a 1.9% stake in March 2023).The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.Three key data points gauge Mercedes-Benz or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.MBGYY PriceOver the past year, Mercedes’s share price dropped about 28.8% from $17.76 to $15.39 as of Thursday’s market close. In the past five years, the company’s share price has never been less than $5.77 nor higher than $26.98.If MBGYY shares trade in the range of $14.00 to $20.00 this next year, the recent $15.39 share price might rise by $0.41 to reach $15.80 in a year. Of course, MBGYY’s price could also drop about the same $0.41 estimated amount or more.My $0.41 upside estimate is based on Mercedes’s average annual price upside over the past four years.MBGYY DividendMercedes-Benz has paid variable semi-annual dividends since August 2014.  The most recent $0.22 SA dividend was declared on March 28th for shareholders of record on May 16th and was paid on June 16th. A forward-looking $0.31 annual dividend yields 4.25% at Wednesday’s closing price.MBGYY ReturnsPutting it all together, a $1.84 estimated one-year gross gain per share shows up when adding Mercedes’  $1.43 estimated annual dividend to the estimated price upside of $0.41, making that $1.84 gross gain per share total.A little over $1000 buys us 65 shares at the $15.39 share price.A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.15 per share out of the $1.84 annual estimated gross-gain to give us a net gain of $1.69 X 65 shares = $109.85 for about a 10.9% estimated net gain for the year.Furthermore, the $93.00 annual dividend income from $1K invested is just over 6 times more than Mercedes’ $15.39 single share price. By these numbers, Mercedes-Benz Group may be an ideal dividend dog.You might choose to pounce on Mercedes-Benz. It is a 52-year-old semi-annual dividend-paying Stuttgart-based car and van maker with a 10-year record paying uninterrupted variable semi-annual dividends.The exact track of Mercedes-Benz’s future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Report: Kingfisher
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