Stock Analysis: Bayerische Motoren Werk

By Fredrik Arnold

Thursday, February 9, 2023 10:41 PM EDT

BMW logo

Image Source: Unsplash

Bayerische Motoren Werk AG bears the ticker symbol BMWYY, and this is my first mention of Bayerische Motoren Werk AG for this new Viking Portfolio I have, however, reviewed it for one or more of my previous seven dog of the week folios.

In addition to being one of the world's leading premium light-vehicle manufacturers, BMW Group produces BMW motorcycles and provides financial services.

Premium light-vehicle brands include BMW, Mini, and ultraluxury brand Rolls-Royce. Operations include 31 production facilities in 15 countries, with a sales network reaching over 140 countries. In 2020, worldwide sales volume exceeded 2.3 million automobiles and more than 179,000 motorcycles.

The company was founded in 1916 and is based in Munich, Germany.

Three key data points gauge

Bayerische Motoren Werk AG, or any dividend-paying firm:

(1) Price

(2) Dividends

(3) Returns

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

BMWYY Price

Bayerische Motoren Werk AG price per share was $35.36 at Thursday’s market close. In the past year, BMWYY share price rose by $0.97, or about 2.8%.

If BMWYY stock trades in the range of $20.00 to $40.00 this next year, its recent $35.36 share price might reach $37.00 by next year. That upside estimate of $1.64 is about $0.16 below the average annual increase in BMWYY shareprice over the past 14 years.

BMWYY Dividends

Bayerische Motoren Werk AG most recent annual dividend of $2.01 casts a forward annual yield of 5.68%.

BMWYY Returns

Adding the $2.01 annual estimated

Bayerische Motoren Werk AG dividend to the one-year price upside estimate of $1.64 reveals a $3.65 potential gross gain estimate per share.

At Thursday’s $35.36 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.36 per share.

Subtract that maybe $0.36 brokerage cost from my estimated $3.65 gross gain makes a net gain of $3.29 X 28 shares = $92.12 for a 9.2% net gain including the 5.68% annual dividend yield.

In the next year our $1K investment in shares of Bayerische Motoren Werk AG would generate $56.80 in cash dividends. However, a single share of BMWYY stock at Wednesday’s $35.36 price is over 1.6 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this still a time to buy

Bayerische Motoren Werk AG shares based on their dividends for 2023. The current dividend from $1K invested is 1.6 times higher than the BMWYY single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Bayerische Motoren Werk AG. Only time and money invested in this stock will determine its future 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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