Volkswagen shares in a downward trend: who benefits from the dividends?

On Wednesday, March 12, 2025, the Volkswagen (VW) vz share fell by 0.9 percent to EUR 108.00 in XETRA trading in the afternoon. At the start of trading, the price was EUR 109.60, while the low in trading was EUR 106.85. A total of 807,202 shares were traded. In the last 52 weeks, the stock reached a high of EUR 128.60 on April 5, 2024. To reach this 52-week high again, 19.07 percent growth is required. The 52-week low was recorded on November 29, 2024 at EUR 78.86, a loss of 26.98 percent.

The dividend for 2023 is EUR 9.06, while the forecast dividend for 2024 is EUR 6.60. The average fair value of the share is estimated at EUR 111.70. The financial results for the third quarter of 2024 were published on October 30, 2024 and showed an EPS (earnings per share) of EUR 2.42, compared to EUR 7.76 in the previous year. Sales in the third quarter of 2024 amounted to EUR 78.48 billion (previous year: EUR 78.85 billion, -0.47 percent). The profit forecast for 2024 is EUR 21.95 per share. Furthermore, the profit and sales figures for the first quarter of 2025 will be published on April 30, 2025. The fourth quarter 2025 financial results presentation is scheduled for March 17, 2026.

Volkswagen dividend policy

Volkswagen AG's dividend policy is part of the financial strategy and aims to ensure continuous dividend development. The Executive Board and Supervisory Board are proposing a dividend of EUR 9.00 per ordinary share and EUR 9.06 per preferred share for the 2023 financial year. The total distribution amount is EUR 4.5 billion, compared to EUR 4.4 billion in the previous year. The payout ratio for the reporting year is 28.3 percent, which represents a decrease from 29.4 percent in the previous year. Without taking into account the special dividend from Porsche AG's IPO, Volkswagen is aiming for a payout ratio of at least 30 percent. The dividend yield for the reporting year is 7.6 percent for ordinary shares (previous year: 5.9 percent) and 8.1 percent for preferred shares (previous year: 7.5 percent).

The undiluted earnings per share for the 2023 financial year were EUR 31.92 for ordinary shares (previous year: EUR 29.66) and EUR 31.98 for preferred shares (previous year: EUR 29.72). The calculation of earnings per share is based on the weighted average number of shares outstanding. The basic and diluted number of shares are identical. The payout ratio is defined as the ratio of dividends to the profit after taxes attributable to shareholders.