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Volvo AB (VLVLY) derives prosperity from transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing, and services that increase the customers' uptime and productivity.

Its five working segments are (1) Trucks, (2) Construction Equipment, (3) Buses, (4) Volvo Penta, and (5) Group Functions & Other.

The company offers its products and services through a network of dealerships and workshops.

It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks.

Volvo AB was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

Three key data points gauge Volvo AB or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

VLVLY Price

Over the past year, Volvo's share price grew just over 34% from $19.72 to $26.46 as of Thursday’s market close.

If Volvo shares trade in the range of $18 to $30.00 this next year, its recent $26.46 share price might rise to $28.20 by next year. Of course, Volvo’s price could drop about the same $1.74 estimated amount, or more.

My annual upside estimate of $1.73 however, about $0.03 under the average annual  VLVLY price gain over the past ten years.

VLVLY Dividend

Volvo has paid variable annual dividends for the past eight years,  except for 2020.  Thereafter Volvo declared and extra dividend in 2021 and went to semi-annial mode in 2022. Volvo’s most recent A dividend of $1.69 was declared March 22nd for shareholders of record April 1st and paid April 19th..

A forward-looking $1.69 annual dividend yields 6.37% at Thursday’s $26.48 share price.

VLVLY Returns

To put it all together, add the Volvo projected annual dividend of $1.69 to the estimated price upside of $1.73 to get a $3.42 estimated gross gain for the coming year.

At Thursday’s $26.46 share price, a little over $1000 would buy 38 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.26 per share.

Subtracting that unlikely $0.26 brokerage cost from the $3.42 estimated gross gain reveals a net gain of $3.16 X 38 shares = $120.08 for about a 12% estimated net gain on the year.

You might choose to pounce on Volvo AB It is a 109-year-old dividend-paying Swedish-based automobile, truck, and machinery manufacturer that has an eight-year track record paying dividends. Furthermore, the $63.70 estimated dividend income from $1k invested is 2.4 times greater than Volvo’s recent $26.46 share price.

The exact track of Volvo’s upcoming 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.

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