Siemens Stock: Record Year and Increased Dividend

Last Updated: 16. November 2023By

The Siemens stock has climbed 21 percent over the last three weeks and after the presentation of strong figures for the past fiscal year 2022/2023, the paper is up almost 6 percent (as of November 16, around 10 a.m.). In comparison to the previous year, the DAX giant not only managed to significantly increase turnover, but also achieved a record profit. The outlook for 2023/2024 is also good – although slightly dimmed – and important for investors: the dividend is being raised and the Siemens stock is by no means overvalued given the figures.

The industrial and conglomerate Siemens had a very good business year behind it. In the fiscal year 2022/2023, the company achieved sales of 77.8 billion euros – 11 percent more than in the previous year. Profit-wise, it looked even better: net profit almost doubled from 4.4 billion euros to 8.5 billion euros. The past year was a record year for Siemens.

For the already running business year 2023/2024, the company is also optimistic. Turnover is expected to increase by 4 to 8 percent compared to the previous year – the slightly reduced growth prospects are mainly due to the weaker demand for industrial automation from China, according to Siemens. In the second half, they are hoping for a boost.

Siemens stock: This looks good for investors After the financial figures, the paper of the DAX company has clearly gained and since the beginning of the year – after some fluctuations – a plus of around 13 percent is on the rate board. Nevertheless, the Siemens stock is not overvalued despite the overall positive development. The P/E ratio is just under 15 with the current valuation.

Also exciting for investors: due to the strong figures, Siemens will pay a dividend of 4.70 euros for 2023 (previously: 4.25 euros). The resulting ordinary dividend yield of 3.2 percent and a new 6 billion euro share buyback program within the next 5 years are also good arguments for the Siemens stock.

However, one should keep an eye on the declining demand, as the order intake in Q4 was also significantly lower than in the previous quarter. Should there be no turnaround here, this could also weigh on the Siemens stock in the coming quarters. Overall, however, the paper of the DAX company remains a solid investment option for medium and long-term oriented investors due to the record profits, outlook and good fundamental figures.