New Report: Mercedes-Benz Group (DDAIF)

black car steering wheel with water droplets

Photo by Glen Ardi on Unsplash

Mercedes-Benz Group AG, known by the ticker symbol DDAIF,  is a large-cap auto manufacturer, operating in the consumer cyclical business sector. This is my first report on Mercedes-Benz Group AG (DDAIF)  for this Viital portfolio or any of my previous six portfolios.

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 $70.70 as of yesterday's market close. One year ago its price was $85.40. Therefore, Mercedes's share price fell $14.70 or about 17.2% in the past year. 

If Mercedes's stock trades in the range of $60.00 to $100.00 this next year, its recent $70.70 share price might rise by $9.30 to reach $80.00 by March 23, 2023. My $9.30 estimate is almost $17.00 under the 1yr target price estimates from 1 analyst covering DDAIF for a brokerage firm.

Mercedes' most recently declared annual dividend of $5.60 per share is payable May 4th, to shareholders on record as of May 2nd.  The DDAIF annual dividend payout per share of $5.60 yields 7.91% at yesterday's $70.70 closing price. 

DDAIF Dividends

DDAIF has paid annual variable payouts since April, 2015. That stretch will mark 7 years next month. 

DDAIF Returns

Adding the $5.60 DDAIF annual dividend to the estimated one-year price upside of $9.30 shows a $14.90 potential gross gain, per share, to be reduced by any costs to trade DDAIF shares.  

At yesterday's $70.70 price per share, a little under $1000 would buy 14 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.71 per share.

Subtract that maybe $0.71 brokerage cost from my estimated $14.90 gross gain estimate per share results in a net gain of $14.19 X 14 shares = $198.66 for a 20% net gain on a $989.80 investment.

So it is that Mercedes-Benz Group AG (DDAIF) shows a possible 20% net gain including a 7.91% past year dividend yield. 

Over the next year at this time our $1000 investment in Mercedes-Benz Group AG (DDAIF) could generate $79.10 in cash dividends alone. Note that a single share of DDAIF stock bought at yesterday's single share price of $70.70 is exactly $8.40 less than the dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now IS the time to buy Mercedes-Benz Group AG (DDAIF) shares. The estimated next-year dividend from $1K invested is $8.40 greater than yesterday's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of Mercedes-Benz Group AG (DDAIF). 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 solicitation, ...

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