Beiersdorf share: All-time high after dividend increase

Last Updated: 6. Februar 2024By

After the announcement of a significantly higher dividend for 2023, the Beiersdorf share has climbed by around 5 percent in the meantime and across the day. The paper is now trading at just over 141 euros – slightly lower than the all-time high set in morning trading at just over 143 euros (as of February 6, 2024, around 10:30 am).

For many years, Beiersdorf has paid out a consistent and relatively low dividend. The current increase – as well as the announced share buyback program – will benefit investors. The announcement from Beiersdorf was well received on the stock market. The stock remains a solid option for long-term oriented investors.

Beiersdorf pays out more dividends – for the first time since 2009 For many years, the consumer goods company from the DAX with global brands such as Nivea or tesa has paid out the same dividend of 0.70 euros. The increase in the dividend to 1 euro per share for the fiscal year 2023 is therefore not necessarily surprising, as the price of the paper has multiplied since then.

In addition to the higher dividend, Beiersdorf has also announced a share buyback program with a volume of 500 million euros. The program is expected to start in May and be completed by the end of the year.

The Beiersdorf share has unsurprisingly reacted positively to the announcements and has climbed to a new all-time high. Further impulses for the stock are now expected from the 2023 annual report at the end of February. Here, the outlook for the current year is likely to be relevant for investors.

Beiersdorf share: Confirmed price targets Analysts are in agreement that the higher dividend and the share buyback program are good news. As a first reaction, both JPMorgan (145 euros) and Bernstein Research (130 euros) and UBS (103 euros) have confirmed their price targets. However, opinions on the valuation of the Beiersdorf share are widely divergent.

Investors should keep in mind that the Beiersdorf share has had a very decent rally in the last 2 years with an increase of around 60 percent. The paper is – especially after the recent all-time high – not exactly cheaply valued. However, for long-term oriented investors, the Beiersdorf share as a globally positioned company with strong brands is still worth a look.