MBG
🚗 Mercedes-Benz showed more moderate capital appreciation compared to Broadcom, with a hypothetical €1,000 investment growing to €1,647 over 15 years (a 68.73% gain).
💶 Dividends played a crucial role in the total return, contributing €1,570 over the period, exceeding the capital gains for the initial investment amount.
⚠️ The company’s dividend history was described as erratic, with periods of cuts or suspensions, which the presenter flagged as an undesirable trait for consistent dividend income investors.
@ElClubDeInversion:
“The second company analyzed is Mercedes-Benz, a well-established German automotive company trading on the DAX (ticker MBG). Its stock price has shown considerable volatility over time. Unlike Broadcom, its dividend history has been quite erratic, although showing a general upward trend. Dividends are paid annually, but there have been instances where they were reduced or even suspended, such as in 2010. A hypothetical €1,000 investment made in March 2010 (buying 28 shares at €34.86, costing €976.08) would be worth €1,646.96 by March 2025 (at €58.82 per share). This represents a more moderate revalorization of 68.73%. Regarding dividends, these 28 shares would have generated €1,570.80 over the 15 years. Thus, the initial €976 investment would have turned into €3,217.76, including the initial amount, €670.88 in capital gains, and €1,570.80 in dividends. While the return was modest but interesting and beat inflation, the presenter emphasized that the erratic nature of its dividend payments would not meet her investment criteria.”
Watch the exact part of the video where @ElClubDeInversion talks about Mercedes-Benz Group AG here:
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Read more articles analyzing Mercedes-Benz Group AG (MBG) at the provided link. MBG stock.
