Among the strongest and most reliable European stocks in terms of returns is, of course, the German carmaker Volkswagen.
How much can you make with Volkswagen stock?
Get up-to-date and precise information on Volkswagen stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Volkswagen: Our key take-aways
- Stock exchange: Xetra
- Stock market index: DAX 30
- Dividend 2021: €4.86
- Dividend forecast 2022 : n/a
- Performance over 1 year: -26.65%
Should I buy Volkswagen stock?
If you are looking for a yield stock, Volkswagen is probably an interesting stock to add to your portfolio.
The company currently offers a dividend yield of over 3%, which is expected to increase in the coming years.
Moreover, the fundamental analysis of this stock also sends bullish signals on this stock in the long-term, which could lead to a capital gain.
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How can I buy shares in Volkswagen ?
To buy Volkswagen on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Volkswagen to your stock portfolio.
How much are Volkswagen shares?
See price chart below to follow Volkswagen stock price in real time.
Ready to invest in Volkswagen? Shop for through Qtrade.
Why Volkswagen shares could go up:
The Volkswagen Group currently has a number of strengths that could allow its stock to gain in value over the long-term, including the following
- A strong international presence: the Volkswagen Group is currently present in more than 153 countries thanks to factories in Germany but also abroad.
- Global manufacturing plants: The company has 119 manufacturing plants worldwide, most of which are located in North and South America, Europe, Africa, Asia and Oceania.
- Strong R&D: the company's research and development department works on new public needs and designs and invents new innovative technologies for cars with heavy investments every year.
- Strong presence in China: Volkswagen also has a strong presence in China, which is currently the world's largest automotive market with over 20% of the Chinese market.
- High-performance brands: The brands developed by Volkswagen have been developed in depth and offer cars that perform better than those of most other brands.
- Diversified portfolio: The group owns more than 15 brands, which allows it to offer a diversified portfolio and reach more consumers.
- Strategic operations: Volkswagen has a strong mergers and acquisitions strategy. It has acquired seven major vehicle brands.
Why Volkswagen shares could go down:
Of course, Volkswagen has some weaknesses that you should also be aware of and that are all elements in favour of a decrease of this value:
- A weak position on the Indian market: with only 3% of this fast growing market, Volkswagen is behind its main competitors. It has only three plants in India.
- Weak position in the USA: The same applies to the US market, which Volkswagen has failed to penetrate with a market share of just 4.8%.
- Environmental problems: Most of the vehicles developed by the group are not environmentally friendly. The governmental measures in this regard could therefore harm its activities.
- Few vehicles for the middle class: the fact that Volkswagen produces almost only high-end vehicles prevents it from effectively penetrating certain markets.
- Past scandals: Finally, it should be remembered that the group was the target of a scandal in 2015 concerning deceptive emissions from it its diesel vehicles, which greatly weakened its image and finances.
Can I buy Volkswagen stock online?
Yes! You can buy Volkswagen shares online. For many buys this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Volkswagen shares?
You will only be able to sell Volkswagen stock with a registered account if you actually hold that stock in your portfolio.
If you want to short this stock, you will have to do so with a margin account.
Note that it is also possible to bet on a decline in the price of this stock by using derivatives such as CFDs or options.
What investment vehicles in Canada can hold Volkswagen stock?
Volkswagen shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Buying Volkswagen shares is quite simple if you want to add these stocks to your portfolio. You can choose the number of shares to buy and place a buy order from your online brokerage platform.
It is also possible to make a more diversified investment in this stock by investing in a stock market fund such as a mutual fund or an ETF.
Volkswagen share price history over 10 years:
|Période||Evolution||Cours le plus bas||Cours le plus haut|
Volkswagen dividends and payment dates
In 2021, the Volkswagen Group paid a dividend of €4.86 to its shareholders.
The Volkswagen Group is an excellent payer for its shareholders, as it has been paying them continuously since 2001.
The Volkswagen dividend is paid once a year, usually in July.
The annual dividend yield of this share is estimated at 3.26%.
The group has not yet announced a dividend for 2022.
|Dividend: payout 2021||Payout 1||Payout 2||Payout 3||Payout 4|
|Dividend per stock||4.86€ per share||n/a||n/a||n/a|
What is the dividend yield for Volkswagen over the last 10 years?
The yield on Volkswagen shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Volkswagen stock:
A critical analysis of Volkswagen stock:
Fundamental analysis of the Volkswagen share gives interesting signals on the medium and long-term with the following indicators:
- Strong financial position: with a high level of cash and net margin, the company shows a strong financial position with interesting earnings multiples.
- Low valuation: Volkswagen's enterprise value is estimated at 0.15 times sales. The stock therefore looks cheap in terms of its net book value and cash flow.
- A good dividend: Volkswagen's dividend payment makes it an attractive yield stock for investors.
- High price target: The average price target of the analysts working on this stock is relatively far from the current price, which indicates an interesting upside potential of this stock.
- Above-expectation releases: Historically, Volkswagen Group releases above market expectations with a positive surprise rate.
- Weak growth expectations: The expected development of sales suggests weak growth for the next few years.
- Diverging consensus: Analysts' price targets for this stock differ significantly, which implies difficulties in valuing this stock.
A technical analysis of Volkswagen stock:
The chart and technical analysis data for Volkswagen shows more pessimistic signals in the long-term with the following:
- The RSI is currently at 43.231, which is returning a strong sell signal.
- The short and medium-term stochastics are sending a sell signal while the long-term stochastic is sending an oversold signal.
- The MACD is currently located at 0.15 and is sending a weak buy signal.
- The simple and exponential moving averages over all time frames are sending a sell signal, except for the MA200 simple and exponential average which is sending a buy signal.
- The next technical support levels are located at 132.64 and 108.28 and the next resistance levels are located at 180.02 and 203.04.
Who is Volkswagen?
The Volkswagen AG Group is a German company that operates in the automobile manufacturing sector. It is currently the leading company in this sector in Europe.
Volkswagen's turnover by activity is divided as follows:
- Vehicle sales with 82.4% of the turnover: with 8.6 million vehicles sold in 2021 with 5.3 million passenger cars, 0.3 million commercial vehicles and 3 million vehicles on the Chinese market.
- Financial services with 17.6% of sales: including financing, fleet management and insurance services.
The Volkswagen Group currently operates 120 production sites worldwide.
The geographical distribution of its sales is as follows:
- Europe at 58.1%
- Asia-Pacific at 19.4%
- North America at 18.1%
- South America at 4.4%
Who are Volkswagen’s competitors?
Although a leader in its market, Volkswagen faces some tough opponents. Here are its main competitors:
- Toyota: This Japanese carmaker is currently the world's leading manufacturer in terms of financial performance.
- Hyundai Motor Group: The South Korean conglomerate is also one of the world's largest automakers in terms of vehicle sales.
- General Motors: This Detroit-based American automaker is also a competitor with a strong presence in North America and competes with Volkswagen in this market.
- Ford Motor Company: Ford Motor Company is an American car manufacturer based in Dearborn and is also mainly positioned on the North American market.
- Nissan Motor Company: this Japanese company is a car manufacturer linked to the French manufacturer Renault since 1999. This alliance between the two companies positions them among the leaders in this sector.
- Honda Motor Co: this Japanese car manufacturer offers passenger cars, motorcycles, quads, scooters, business aircraft, electric generators, boat engines and gardening and DIY equipment.
- Stellantis: Finally, the Stellantis group, which was formed from the 2021 merger of PSA and Fiat Chrysler, operates some 15 automotive brands from the two entities and has thus become one of the international leaders in this market.
Who are Volkswagen’s partners?
Of course, the Volkswagen Group's strategic allies must also be taken into account. Here are its most recent partners:
- Bosch: the two companies have formed an alliance in autonomous driving and to improve the systems in their vehicles.
- Ford: The two automakers have also formed a collaborative partnership in the areas of electric vehicles, commercial vehicles and artificial intelligence.
- Microsoft: The German automaker has also teamed up with Microsoft to collaborate on an automated driving platform.
- EDF: Volkswagen Group France has also signed a strategic partnership with electricity provider EDF to support its customers who choose an electric engine for their vehicles.
- Salzgitter: Finally, Volkswagen has also entered into a strategic partnership with this other German company to supply low-carbon steel from 2025 onwards and to implement a recycling system for this steel.