Special Dividend upcoming

2 дек. 2022 г.

Following the IPO of Porsche in October, Volkswagen will propose a special dividend to its shareholders at the Extraordinary AGM on 16th of December. The special dividend is in the amount of 19.06 EUR per share (ordinary or preference).

In my opinion this special dividend, in combination with Volkswagen's current valuation, is an excellent way to get some short term yield on this stock.
Given the current share price (just under 140 EUR), the special dividend will provide share holders an instant yield of around 13.5% (gross). Of course, the share will drop as a result of the dividend at the ex-dividend date. With the current share price it's expected to drop to a level around 120 EUR, which is near recent lows.
At 120 EUR Volkswagen is trading just over a P/E ratio of 4. Hence, downside risks seem to be limited, even with a macro-economic downturn ahead.

I'll be adding to my current long position in the next couple of days to pick up the special dividend.