Traton share: Dividend and profits impress

Last Updated: 5. Mรคrz 2024By

Traton stock has already risen significantly in morning trading after the presentation of the business figures and is currently trading at around 27.50 euros, just below the all-time high from 2021. Since the beginning of the year, the commercial vehicle manufacturer’s stock has already gained around 30 percent (as of March 5, 2024, 11 a.m.).

And this for several reasons: Firstly, Traton had a very successful fiscal year 2023 and impressed particularly on the profit side. Secondly, the outlook for the current year 2024 is also optimistic. For investors, this is exciting news as the dividend is expected to increase significantly and more than double compared to the previous year.

Traton with very good numbers In fiscal year 2023, the commercial vehicle group (with brands such as MAN and Scania) achieved a 16 percent increase in sales to 46.87 billion euros compared to the previous year. Sales rose by 11 percent to 338,183 vehicles. Traton’s adjusted operating result was almost double that of 2022, at 4.03 billion euros.

The adjusted operating margin increased from 5.1 percent to 8.6 percent. Despite the difficult economic environment, Traton remains optimistic for 2024: sales and revenue are expected to move between minus 5 and plus 10 percent compared to the previous year. The margin is expected to be between 8 and 9 percent after 8.6 percent in 2024.

The company is supported by its continued high order backlog, with the order book already filled for the first half of the year. However, there is a downside โ€“ the order intake has not been convincing lately. In 2023, it was 21 percent below the previous year’s level at 264,798 vehicles.

Traton stock โ€“ strong dividend potential Thanks to the increased profits, the board of directors and the supervisory board will propose a significantly higher dividend to the shareholders. The reason: Earnings per share more than doubled from 2.28 euros in 2022 to 4.90 euros.

Correspondingly, the dividend will also be higher โ€“ after 0.70 euros in the previous year, a dividend of 1.50 euros will now be proposed at the annual general meeting. This corresponds to a generous dividend yield of around 5.5 percent at the current price.

Traton stock: Everything is currently going well A strong earnings development, an optimistic outlook despite the difficult environment, and a significantly higher dividend โ€“ there are several good arguments for Traton stock. In the last 6 months, the stock has gained almost 45 percent and there are many indications that the rally will continue and the all-time high will be broken soon.

However, long-term oriented investors should keep an eye on the development of order intake. In case of bad news, there can always be setbacks. With the optimistic forecast and the strong dividend increase, Traton has certainly not set its own bar too low.