Why are Mercedes shares falling?
Shares in Mercedes-Benz slipped slightly on Wednesday morning after the carmaker withdrew its full-year outlook and announced a drop in earnings. The Stuttgart-based firm’s stock had dropped more than 1% by midday CEST as investors feared the fallout of trade barriers imposed by the US administration. Mercedes-Benz Group’s earnings over the next few years are expected to increase by 24%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.Valuation metrics show that Mercedes-Benz Group AG may be undervalued. Its Value Score of A indicates it would be a good pick for value investors. The financial health and growth prospects of MBGYY, demonstrate its potential to outperform the market. It currently has a Growth Score of D.BLEAK OUTLOOK After a 30% slump in earnings in 2024, and 40% in its cars division, this year will see earnings fall even further, Mercedes-Benz said, expecting a rate of return in its car division of just 6-8%.
Is Mercedes-Benz a good dividend stock?
The mean historical Dividend Yield of Mercedes-Benz Group AG over the last ten years is 6. The current 8. Dividend Yield has changed 31. Over the past ten years (40 quarters), MBG. DE’s Dividend Yield was at its highest in in the June 2022 quarter at 9. Mercedes-Benz Group AG has an annual dividend of $0. The dividend is paid once per year and the last ex-dividend date was May 9, 2025.
Is Mercedes-Benz dividend safe?
Our metric indicating of the reliability of the dividend is 0. This indicates a dividend payer that has not always been reliable in the past. Payout Ratio Basics If a company has a dividend payout ratio over 100% then that means that the company is paying out more to its shareholders than earnings coming in. This is typically not a good recipe for the company’s financial health; it can be a sign that the dividend payment will be cut in the future.The dividend payout ratio is 0% for companies that do not pay dividends and 100% for companies that pay out their entire net income as dividends. Several considerations go into interpreting the dividend payout ratio—most importantly, the company’s level of maturity.