3 reasons why Munich Re's DAX shares could still be a worthwhile purchase.

3 reasons why Munich Re's DAX shares could still be a worthwhile purchase.

According to a report by www.aktienwelt360.de,

In my opinion as an economic expert, Munich Re (WKN: 843002) remains an attractive choice for investors. The reasons for this lie in the current developments of the company and the market, which indicate that the stock could continue to show solid performance.

Despite a strong price increase, Munich Re shares are still valued comparatively cheaply. The company's management recently provided optimistic forecasts for the current fiscal year, indicating stronger growth. The stock's price-to-earnings ratio is around 11, showing a solid value perspective. The dividend yield is around 3.1% and management is expected to increase the dividend significantly in the future.

Munich Re has a long-standing history of consistently increasing dividends and shows solid profit growth. Based on earnings growth from the current year to next year, the dividend per share could increase significantly. The payout ratio for the most recent dividend is just 35%, which is an indication that the dividend could increase in the future.

With regard to interest rate developments, the share could also remain interesting. Increased interest rates allow management in asset management to achieve better returns, which could have a positive impact on profits.

All in all, the reasons mentioned are indications that Munich Re shares could continue to be attractive for investors. However, it is important to emphasize that investment decisions should be made carefully and based on comprehensive analysis.

This analysis report is based on information from the article “3 reasons why my favorite DAX stock could still be a buy” by www.aktienwelt360.de.