Current Report: Bayerische Motoren Werke Could Grow 9.83% This Year

Bayerische Motoren Werke is projected to return 9.83% this year, fueled by a robust 5.375% dividend yield.

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Source: DepositPhotos

This company was founded in 1916 and is headquartered in Munich, Germany.

Bayerische Motoren Werke AG (BMWKY) manufactures and sells automobiles and motorcycles.

Three key data points gauge BMWKY (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

BMWKY Price

Bayerische Motoren Werke’s single share price increased $9.20 (or over 28.14%) from $28.53 to $32.00 in the past year, per Friday’s mid-market report.

No analysts cover the stock to provide their one-year price targets. However, the past 18 years' price history shows an average annual price upside of $1.45, which I’ll use to calculate returns after I discuss dividends.  

BMWKY Dividends

Bayerische Motoren Werke has paid variable annual dividends since May 2009.  The most recent annual payout of $1.72 is payable June 8 (to shareholders on record as of May 15) for a yield of 5.375% 

BMWKY Returns

Putting it all together, as of May 8 a possible gross gain of $3.17 was projected by the $1.45 per share annual gain added to the $1.72 forward looking annual dividend.

A little under $1000 invested in BMWKY at Friday’s $32.00 mid-day share price would buy 31 shares, which multiply the $3.17 gross gain to $98.27 for the coming year, or 9.83%.

The dividend dogcatcher rule is to only buy initial shares of a dividend stock that pays an annual dividend (from $1000 invested) that is more than the cost of a single share.

BMWKY’s annual dividend from $1K invested is $52.70. So Bayerische Motoren Werke shows a dividend from $1,000 invested slightly over 1.6 times its $32.00 single share price.

The exact track of BMWKY’s future share price and dividend will entirely be determined by market action and company finances. 

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.

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