At 53 billion euros, the 40 DAX companies are likely to pay out almost one billion euros more this year than a year ago - more than ever before.

The reason for the strong development is high consolidated profits and unexpectedly rising dividends at a good dozen companies, including $ALV (+1,19 %) Allianz, $MUV2 (+1,87 %) Munich Re and $RHM (+5,54 %) Rheinmetall.

At 109 billion euros net profit, the DAX companies are likely to have earned as much in 2024 as in the previous year, according to Handelsblatt calculations. Slump in earnings for the three car manufacturers $BMW (+0,08 %) BMW, $MBG (+0,46 %) Mercedes and $VOW (+1 %) VW will be offset by companies in other sectors, in particular the major insurers Allianz, Munich Re and $HNR1 (+0,33 %) Hannover Re, but also $DTE (-0,25 %) Deutsche Telekom, $HEN (-0,07 %) Henkel and $EOAN (+0,23 %) Eon.

More than a dozen DAX companies have announced higher dividends than the market had previously expected. For example $ALV (+1,19 %) 15.40 euros per share after 13.80 euros in the previous year. Analysts had forecast just under 15 euros. The insurer is thus distributing just under six billion euros. This is a record in the German corporate landscape.

The biggest jump is at $MUV2 (+1,87 %) Munich Re: The reinsurer is increasing its dividend by five euros per share to 20 euros.

The two healthcare specialists $FRE (+2,15 %) Fresenius and $FME (+3,42 %) Fresenius Medical Care, the brand manufacturer $HEN (-0,07 %) Henkel, the automotive supplier $BTR Continental, the $CBK (+3,68 %) Commerzbank, $RHM (+5,54 %) Rheinmetall and $HNR1 (+0,33 %) Hannover Re have raised their dividends, in some cases significantly more than expected. This is also due to rising profits, which justify a higher profit share for shareholders.

The largest dividend payers in the DAX are

• $ALV (+1,19 %)
• 
  $DTE (-0,25 %)
• 
  $MBG (+0,46 %)
• 
  $SIE (+3,41 %)
• 
  $VOW (+1 %)

Like the car manufacturers, a number of companies in the DAX remain below the usual international payout ratios, including the family-run groups $BEI (+0,9 %) Beiersdorf and $MRK (-0,43 %) Merck. They pass on less than 30 percent of their profits. This leaves enough of a buffer so that dividends do not have to be reduced immediately in more difficult times.

Germany's most valuable group, $SAP (+3,23 %) SAP, with a payout ratio of 85%, is pushing the limit: net profit of 3.1 billion euros in the past year compares with a total dividend payout of 2.7 billion euros. However, the profit was burdened by a one-off effect.

So far, a total of 20 companies have increased their dividends, with only $BAS (+2,64 %) BASF and the three car manufacturers. Four companies have yet to do so: $RWE (+0,16 %) RWE, $SY1 (+0,13 %) Symrise and $VNA (+0,48 %) Vonovia are likely to increase their dividends, while analysts expect $PAH3 (+0,2 %) analysts expect a reduction at Porsche Holding.

Source (excerpt) & chart: Handelsblatt, 15.03.25

Mercedes-Benz appoints new head of North America

Mercedes-Benz $MBG (+0,46 %) has brought a new captain on board for its North American journey. Jason Hoff will now be at the helm, steering the fortunes of the company in a turbulent climate. It is a decisive step, as the automotive industry is facing numerous challenges. There are also exciting developments at Volkswagen. CEO Oliver Blume will benefit from an increase in his remuneration, which will rise by 6.6 percent to an impressive 10.35 million euros in 2024. This is despite the members of the Board of Management forgoing 5 percent of their salary, which will still earn Blume 65,000 euros. These measures are part of a comprehensive savings program that will be continued in the coming years and are intended to strengthen the company's position.

Northvolt insolvency shakes Scania and Porsche

In the USA and beyond, Northvolt's insolvency has had the effect of an earthquake and has shaken up the automotive industry, especially the giants Scania and Porsche. Although the subsidiaries in Germany and North America are not directly affected by this insolvency, the situation in Skellefteå, Northvolt's headquarters, remains tense. The mayor and the head of administration are asking the Swedish government for support, as the city and the province cannot cope with the crisis on their own. The employees are currently being supported by a state wage guarantee, but uncertainty hangs over the municipality, particularly with regard to the residence permits of many foreign employees who are hoping for a quick solution.

Porsche AG shares fall sharply

Porsche AG $P911 (-0,77 %) is facing drastic pressure as a decline in profits has dampened sentiment and the stock has also been affected. CEO Breckner has commented on the company's long-term goals and emphasized that the company is aiming for a return on sales of over 20 percent. However, the tense market situation will make a medium-term target of 15 to 17 percent necessary, which represents an adjustment of previous expectations. This year, around 800 million euros will be invested in adapting the model range and expanding the battery business. The operating margin is expected to be between 10 and 12 percent, while turnover is estimated at between 39 and 40 billion euros.

Sources:

https://www.manager-magazin.de/unternehmen/autoindustrie/mercedes-benz-jason-hoff-wird-neuer-nordamerika-chef-a-2a041118-2f47-44f9-bb4a-f7d7252418e6

https://www.manager-magazin.de/unternehmen/industrie/northvolt-insolvenz-robert-habeck-hofft-auf-neuen-investor-fuer-batteriezellfabrik-in-heide-a-b81434aa-21d8-4559-a38c-3869458fc3c5

https://www.manager-magazin.de/unternehmen/porsche-gewinneinbruch-durch-china-flaute-und-hohe-kosten-a-563e5da5-aa4e-4fd3-8bb8-c7bba2756ad3

Zalando $ZAL (+2,33 %) has big plans and wants to take over its smaller rival About You by the summer. This majority takeover is a strategic step to strengthen its market position and expand its reach in online retail. Zalando intends to squeeze out the remaining shareholders of About You. The amount of cash compensation that will be offered as part of this squeeze-out is still unknown. However, Zalando assures to make an "appropriate offer" after the deal is finalized. On Friday, About You shares remained stable at 6.66 euros, which is higher than Zalando's offer of 6.50 euros. This could make the negotiations even more exciting, as it gives shareholders an incentive to consider whether or not they want to accept the offer.

In the USA, Mercedes-Benz $MBG (+0,46 %) also has big plans and wants to significantly expand its military vehicle business. The head of the Special Trucks division sees huge opportunities in this area and wants to significantly increase market share. The focus is on developing innovative solutions for military applications and expanding the product range. However, details of the specific plans have not yet been published. With this expansion, the company wants to position itself in a growing market that could become increasingly important in the coming years. With these steps, Mercedes-Benz wants to secure its competitiveness in a rapidly changing environment and open up new areas of business.

Sources:

https://www.manager-magazin.de/unternehmen/handel/zalando-uebernahme-von-about-you-soll-im-sommer-abgeschlossen-sein-a-17a3ea76-7de7-421a-894f-d54ab99e140e

https://www.manager-magazin.de/unternehmen/autoindustrie/mercedes-benz-special-trucks-chefin-moechte-geschaeft-mit-militaerfahrzeugen-ausbauen-a-ae007afa-6c16-4b98-a144-2ad64fe43e05

As every Sunday, the most important news from the past week, as well as the most important dates for the coming week.

Also as a video:

https://youtube.com/shorts/jsEEQ7p900o?si=YxUmTubdAPwHFSPq

Sunday:

Trump announces a strategic crypto reserve, the price of Bitcoin rises again. In addition to Bitcoin and Ether, investments are also to be made in Cardano, Solana and Ripple. 'The USA is to become the crypto capital of the world'

https://www.n-tv.de/wirtschaft/Trump-kuendigt-strategische-Krypto-Reserve-an-article25599761.html

Monday:

The EU Commission wants to relax the climate targets. The shares of the car manufacturers, $VOW3 (+0,16 %) VW, $BMW (+0,08 %) BMW and $MBG (+0,46 %) Mercedes can rise significantly. The annual targets are to be combined into a compensation period. This would give the car manufacturers more time in case of doubt.

https://www.handelsblatt.com/politik/international/autoindustrie-eu-kommission-will-klimaziele-fuer-autobauer-lockern/100111120.html

Inflation is falling slightly less than expected. In February, inflation in the eurozone was 2.4%. The expected figure was 2.3%, compared with 2.5% in January. The next interest rate cut is expected on Thursday.

https://www.manager-magazin.de/politik/europa/inflationsrate-in-der-eurozone-verbraucherpreise-sinken-weniger-als-erwartet-a-bd9e29de-b59d-4372-93d6-9af33e1a1758

Wednesday:

Sales at$BAYN (+2,26 %) Bayer stagnated in 2024, EBITDA fell by 22%. However, things are expected to pick up again in 2026. The bottom line was a loss of 2.55 billion euros. Shareholders will receive a dividend of 0.11 euros per share. Bayer had already cut the dividend to the minimum last year in order to reduce debt. A dividend is to be paid again from 2027. On Friday, it was announced that the company plans to seek approval for the possibility of a capital increase at the AGM.

https://www.handelsblatt.com/unternehmen/industrie/chemiekonzern-ergebniseinbruch-bei-bayer-erst-ab-2026-besserung-erwartet/100109789.html

The economic data from the USA is better than expected. The purchasing managers' index in particular is above expectations. However, there is much to suggest that prices will continue to rise. The order situation and employment are also improving compared to the previous month.

https://finanzmarktwelt.de/usa-ism-index-service-2-341270/

Thursday:

$DHLGY (+3,01 %) DHL cuts 8,000 jobs in the mail and parcel business after poor figures. Earnings per share fell from 3.09 to 2.86 euros. The dividend is to be kept stable at 1.85 euros per share. The revenue forecast, which was lowered in the fall, was exceeded.

https://www.handelsblatt.com/unternehmen/dienstleister/dhl-logistikkonzern-streicht-8000-stellen-in-deutschland/100111422.html

Thursday:

No big surprise: the ECB cuts the key interest rate for the 6th time to 2.5%. However, the debate about further interest rate cuts becomes more heated. A pause in interest rates is likely to come at the latest at an interest rate of 1.75%.

https://www.n-tv.de/wirtschaft/EZB-senkt-Leitzins-zum-sechsten-Mal-seit-Sommer-article25611145.html

These are the most important dates for the coming week:

Tuesday: 00:50 GDP figures (Japan)

Wednesday: 13:30 Inflation data (USA)

Thursday: 13:30 Producer prices (USA)

Can you think of any other dates? Write it in the comments 👇

#inflation
#usa
#bip
#erzeugerpreise
#japan

Mercedes-Benz $MBG (+0,46 %) has made an important decision: The company will reduce the number of vehicles produced in Germany while doubling capacity in countries with lower costs. However, these restructuring measures are not without consequences, as job cuts will be necessary. Fortunately, the intention remains to keep all plants in Germany open. The CFO has emphasized that these job cuts will be made through voluntary redundancies and natural attrition, giving employees some control over their situation. For the current year, the company is expecting a decline in turnover and a lower dividend. In addition, the operating return in the core business with premium cars has fallen. In order to remain competitive, Mercedes-Benz plans to reduce production costs by 10 percent by 2027. Of particular note is the relocation of production to Hungary, where costs are an impressive 70 percent lower. This could help the company to hold its own in an increasingly competitive market.

Source:

https://www.n-tv.de/wirtschaft/Mercedes-Benz-streicht-Stellen-und-verlagert-Produktion-article25577449.html

The EU Commission wants to make it easier for European car manufacturers to meet the climate targets for 2025. This was announced by EU Commission President Ursula von der Leyen (CDU) at a press conference on Monday. She had previously met with industry representatives in Brussels to discuss the current situation in the industry.

The solution is to be a so-called "quick fix" for the industry, which is to be presented as early as this month. According to this, the CO2 targets for 2025, 2026 and 2027 are to be combined into one compensation period. Achieving the targets on an annual basis is therefore off the table.

This caused a clear market reaction on the stock exchange. Shares in German car manufacturers benefited in particular, all of which rose by more than two percent. The shares of $DTG (+2,02 %) Daimler Truck and $VOW (+1 %) Volkswagen rose the most, each by more than five percent. Also $BMW (+0,08 %) BMW, $MBG (+0,46 %) Mercedes Benz and $P911 (-0,77 %) Porsche also participated with rising share prices.

On Wednesday, von der Leyen will officially present the action plan for the automotive industry, which was jointly developed in the Strategic Dialogue and will include further measures such as the expansion of the charging infrastructure. In addition, money is to be made available for a social leasing program via the Climate Social Fund.

Source (excerpt): Handelsblatt, 03.03.25 | Graphic: ChatGPT

The second month of 2025 is already over. Time is flying by again at breakneck speed and one event or statement follows the next this year. It's crazy what's going on at the moment and at the same time the market is somehow saying "I don't care".

Up down, up down, the markets are becoming more volatile and yet, or precisely because of this, my February was almost at +/-0.

But one thing at a time.

In February I achieved a plus of 0.8%. With my portfolio size, this corresponds to a value of almost €900. Not particularly good compared to the Dax (+3.77%), but still very respectable compared to the HSBC MSCI World (-2.49%).

Unfortunately, things do not look any better over the year (YTD).

The Dax is running away with 13.3%, while the MSCI World is bobbing along at 1.6%. Here, too, I was at least able to beat the World, but I still lag miles behind the DAX.

Overall, however, I am still very satisfied. As I don't have a lot of tech in my portfolio and my stocks are (mostly) rather stable, there is often no outperformance of the stocks and if there is, it is only marginal.

My high and low performers in February were (top 3):

$HSY (-0,87 %) Hershey +15.63%

$T (+1,63 %) AT&T +14.07%

$NESN (+0,46 %) Nestle +13.10%

$ADM (-0,21 %) Archer Daniels -8.57%

$UNH (+1,36 %) United Health -13.16%

$TSLA (+3,78 %) Tesla -27.59%

Dividends:

In February, I received a net €123.62 from a total of 10 distributions.

Compared to February 2024 (€99.26), this was an increase of 24.54%

Investments:

Due to the construction work on the house last year, the focus continues to be on building up the nest egg and saving up a "leisure account" again, as everything was really used up completely last year and only the custody account remained.

The savings plans will of course continue unabated, but individual investments are probably not possible for the time being.

Purchases and sales:

I have parted with Mercedes ( $MBG (+0,46 %) ) and Medical Properties ( $MPW (-0,19 %) ).

I then added to Lockheed Martin ( $LMT (-1,67 %) ), Hershey ( $HSY (-0,87 %) ) and Petroleo Brasileiro ( $PETR4 (-0,1 %) ).

My savings plans remain unchanged, but it is quite possible that I will stop them for the time being in order to build up investment cash again.

Savings plans (350€ in total):

• Realty ($O (+0,68 %) )
• STAG Industrial ($STAG (+0,74 %) )
• Gladstone Invest ($GAIN (+0 %) )
• Hercules Capital ($HTGC (+1,32 %) )
• Cintas ($CTAS (+0,26 %) )
• LVMH ($MC (+1,8 %) )
• Monster Beverage ($MNST (+0,76 %) )
• Microsoft ($MSFT (+1,55 %) )

Goals 2025:

My goal is to have €130,000 in my portfolio at the end of the year. The goal is to be achieved by reinvesting the dividend, making payments and, of course, increasing the share price. The share price increase is of course impossible to predict in any way, so the motto is: if the share price falls or does not rise enough, more cash is needed.

This comes from selling useless stuff on eBay, additional income from e.g. "neighborhood help" etc. The worse the share price, the more additional cash has to be raised.

Target achievement at the end of February 2025: 37.41%

So I'm on the right track (so far). I'm curious to see what else will happen in 2025 and hope that the crash, which seems to be getting closer and closer, will take a little longer (so that I can continue to accumulate cash).

How was your February? Are you happy so far? I think that, due to the volatility, the portfolios in February are far more spread out than they were in January or even at the end of last year.

A little late, but I don't want to withhold my insights from the Mercedes Benz ($MBG (+0,46 %) ) analyst conference. As a listener to the latest Mercedes-Benz conference call, I was able to gain exciting insights into the company's current strategy, market developments and future prospects. The Q&A session with media representatives in particular provided valuable information on the economic challenges and strategic direction of the automotive giant.

One key topic was the potential relocation of additional production capacity to China. Mercedes-Benz is currently intensively examining the economic feasibility and market potential of such a move. The decision is likely to depend not least on how the regulatory framework and demand forecasts develop.

At the same time, the company is concerned about a possible increase in US import duties - a scenario that could have a significant impact on profit margins. However, Mercedes-Benz is prepared: Various scenarios are being played out and investors are to be informed of possible implications at an early stage.

While the focus on electromobility is unmistakable, the management made it clear that the combustion engine will also continue to play a key role in the portfolio. Plug-in hybrids in particular are intended to act as a bridging technology to accompany the transition to a fully electric future. This strategy is based on the assumption that the market is not uniform and that change is not linear - a pragmatic approach that makes perfect sense in view of regional differences in regulations and customer preferences.

Mercedes-Benz also spoke about optimizing the cost structure. In Germany in particular, staff cuts are on the agenda, although no specific figures were given. One thing is clear: restructuring will happen, but the company wants to find socially responsible solutions. A balancing act between cost efficiency and responsible management.

China remains one of the most important sales markets for Mercedes-Benz, and the company is in close contact with political decision-makers. However, it remains to be seen how much economic stimulus from China will actually boost demand for Mercedes models in 2025. For 2024, on the other hand, there will be a dampener - making the planned "product offensive" in the years 2025 to 2027, with which Mercedes-Benz intends to generate new momentum, all the more exciting.

Mercedes-Benz's strategy is clear: drive forward electromobility, but do not write off combustion engines prematurely. Keep production capacities flexible in order to cushion geopolitical risks. And at the same time optimize the cost structure without jeopardizing innovative strength.

Investors should therefore keep a close eye on further developments in China and the company's reaction to potential US tariffs.

I hope you enjoyed this short summary!

The AI start-up Anthropic recently raised an impressive 3.5 billion dollars in a new financing round. This financial injection increases the company's valuation to a whopping 61.5 billion dollars - that's almost 60 billion euros! This means that Anthropic has even overtaken the Mercedes-Benz Group $MBG (+0,46 %). 🚀

Investors include well-known venture capital firms such as Lightspeed Venture Partners, General Catalyst and Bessemer Venture Partners. Investors from Abu Dhabi are also apparently interested. Back in January, Reuters predicted a valuation of 60 billion dollars, which has now actually been reached.

Anthropic, founded by former OpenAI employees, specializes in the development of AI systems and language models and is committed to the responsible use of artificial intelligence. The company competes with OpenAI's popular ChatGPT technology, which is supported by Microsoft.

With the steady growth of the AI industry, things look promising for Anthropic. It will be interesting to see how the competition, including Elon Musk's xAI, will develop.

A lot has happened in the automotive sector in recent years. Now there is news from Mercedes-Benz $MBG (+0,46 %). CEO Ola Källenius has signaled that the company would like to invest more in the USA in the coming years. An important factor here is the tariffs between the USA and the EU, which could have a positive impact on the willingness to invest.

Mercedes-Benz has been active in the USA for over 120 years and has already invested several billion dollars. Källenius emphasized that two large production facilities in Alabama and South Carolina create over 11,000 direct jobs. If suppliers are included, a total of around 100,000 jobs can be attributed to the Mercedes-Benz presence in the USA.

The impact on the economy is enormous: in addition to the direct jobs, there are also thousands of jobs at dealerships and suppliers. Källenius sees Mercedes-Benz not only as a German company, but emphasizes its strong American presence. This could be exciting for the future - not only for the company, but also for the US economy. 👍