Volvo dividend proposal 2025
Volvo is the beauty in this case. What a report!
What I think the market will focus on most today is the order intake, which landed at 61,200 trucks. Analysts had expected a figure of 54,247 units.
The dividend this year for Volvo will be SEK 18.5/share. Of this, SEK 8 is an ordinary dividend while the remaining SEK 10.5 is an extra dividend.
The order intake was clearly positive, but apart from that, Volvo is largely delivering according to expectations. The analysts had managed to get it right this time.
What the report also shows is that, given favorable conditions, there is a good chance that Volvo can maintain its large dividend in the coming years. The fact that order intake is higher than deliveries for both trucks and construction equipment will be the driving factor.
The current price and this year’s upcoming dividend mean that the dividend yield in Volvo is currently 6.5%. That’s very nice for a company that is struggling like Volvo is. Again, the share is not obviously expensive either, I think.
CEO Martin Lundstedt describes this as proof that the market has likely bottomed out. However, it is uncertain how fast the recovery will actually be.
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