Daily Stock Analysis: Mercedes-Benz Group

black mercedes benz coupe on gray asphalt road

Photo by Aaron Huber on Unsplash

Mercedes-Benz Group AG, known by the ticker symbol DDAIF, is a large-cap automobile manufacturing company operating in the consumer cyclical business sector. This is my second report on Mercedes-Benz Group AG for my Viital portfolio. Previously reported on them  March 23, 2022.

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, as mentioned, is headquartered in Stuttgart, Germany.

Three key data points gauge any dividend equity or fund such as Mercedes-Benz Group AG (DDAIF).

(1) Price

(2) Dividends

(3) Returns

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

DDAIF Price

Mercedes’s price per share was $58.25 as of yesterday's market close. One year ago its price was $89.90. Therefore, Mercedes-Benz Group AG’s share price fell $31.65 or about 35.2% in the past year.

If Mercedes’s stock trades in the range of $40.00 to $85.00 this next year, its recent $58.25 share price might rise by $1.35 to reach $59.60 by June 30, 2023. My $1.35 upside estimate is equal to the average annual price increase over the past ten years. It is also $24.54 under the median one-year price estimate from one analyst covering Mercedes.
 

DDAIF Dividends

Mercedes’s most recently declared an annual dividend of $5.27 was paid May 4, 2022, to shareholders on record as of May 2nd.

Mercedes has paid variable annual dividends since April 2005, with the exception of 2010.  The current annual dividend delivers an annual yield of 8.75%  per May’s share price.
 

DDAIF Returns

Adding the $5.27 DDAIF annual dividend to my estimated one-year price upside estimate of $1.35 shows a $6.62 potential gross gain, per share, to be reduced by any costs to trade DDAIF shares.

At yesterday's $58.25 closing price per share, a little over $1000 would buy 17 shares.

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

Subtract that maybe $0.59 brokerage cost from my estimated $6.62 gross gain estimate per share results in a net gain of $6.03 X 17 shares = $102.51 for a 10.25% net gain including an 8.75% forward-looking annual dividend yield.

So it is that Mercedes-Benz Group AG shows a possible 10.25% net gain including an 8.75% forward-looking dividend yield.

Over the next year, this time our $1000 investment in Mercedes-Benz Group AG shares would generate $87.60 in cash dividends. Of course, a single share of DDAIF stock bought at yesterday's $58.25 price is over one and one-half times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up DDAIF shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.5 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

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.

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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