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Mercedes-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) Returns

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

MBGYY Price

Over 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 Dividend

Mercedes-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 Returns

Putting 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.

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