Current Report: Mercedes-Benz Group

Mercedes-Benz Group AG with the ticker MBGAF is a large-cap automobile manufacturing   company operating in the consumer cyclical business sector. This is the fifth of five consumer cyclical candidates competing for the fiftieth slot in my Viital folio. It is my first report on MBGAF for my Viital portfolio. I did  mention the sister company Daimler twice in previous reports.

Free photos of Mercedes

Based in Stuttgart, Germany, Mercedes-Benz Group AG makes premium 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 11.9% of Aston Martin and 9.6% of Beijing Automotive Group.

Li Shufu, chairman of Chinese automaker Geely Automobile, owns 9.7% of Mercedes-Benz. Other major shareholders include Kuwait Investment Authority at 6.8% and Beijing Automotive group at 5.0%

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 (as mentioned before) in Stuttgart, Germany.

hree key data points gauge any dividend equity or fund, such as Mercedes-Benz Group AG:

(1) Price

(2) Dividends

(3) Returns

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



Mercedes-Benz’s price per share was $57.18 after today’s market close.  One year ago its price was $85.43 So, MBGAF’s share price fell by $28.25 or about 33% in the past year.

If Mercedes-Benz’s stock trades in the range of $40.00 to $80.00 this next year, its recent $57.18 share price might rise by $7.82 to reach $65.00 by next year. My $7.82 upside estimate is $5.93  under the median of annual price target upsides projected by the analyst tracking MBGAF stock prices for brokers.


MBGAF Dividends

Mercedes-Benz’s most recently declared annual dividend of $5.27 per share was paid May 4th to shareholders on record as of May  2nd.

Since April, 2005 Mercedes-Benz has paid annual variable dividends. The current forward-looking annual dividend of $5.27 casts an annual yield 9.22% as of yesterday’s $57.18 share price.


MBGAF Returns

Adding the $5.27 MBGAF annual dividend to my estimated one-year price upside estimate of $7.82 shows a $13.09 potential gross gain, per share, to be reduced by any costs to trade MBGAF shares.

At yesterday's $57.18 closing price, a little under $1000 would buy 17 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.59 per share.

Subtract that maybe $0.59 brokerage cost from my estimated $13.09 gross gain estimate per share results in a net gain of $12.50 X 17 shares = $212.50 for a 21.25% net gain including a 9.22% forward-looking annual dividend yield.

Over the next year our $1K investment in Mercedes-Benz Group AG shares could generate $92.20 in cash dividends. Of course, a single share MBGAF stock bought at yesterday's $57.18 price is  $35.02 less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire MBGAF shares based on their forward looking dividends for the year 2022. The forecast annual dividend from $1K invested is about 38% greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Mercedes-Benz Group AG. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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