BMW Shares Dip on Ex-Dividend Day, but Analysts Remain Confident

On Wednesday, BMW held its first traditional annual general meeting in five years, marking a return to in-person gatherings. CEO Oliver Zipse opened the event by emphasising the importance of face-to-face interaction, stating: “People aren’t digital. We all want to exchange ideas in person, to look each other in the eye,” according to remarks reported by the German Press Agency.

BMW Stock Drops on XETRA

During Thursday’s trading on the XETRA exchange, BMW shares fell by as much as €4.52, or 5.49%, settling at €77.78. However, this drop was largely expected, as the stock is now trading ex-dividend. The company distributes its dividend annually in May, and shareholders who held BMW stock until the end of trading on Wednesday are entitled to a payout of €4.30 per share. This equates to a dividend yield of 5.22%. Holders of BMW preferred shares will receive an even higher payment of €4.32 per share. As such, the current decline in share price is largely in line with the dividend deduction.

Analysts Remain Upbeat

Despite the dip in price, market analysts remain optimistic about BMW’s long-term prospects. It is common for a stock to experience a short-term rebound following the ex-dividend date, as investors often take the opportunity to buy at a discount. Analysts at Bernstein Research recently reiterated their “Outperform” rating for BMW shares and maintained their price target of €92. This suggests an upside of nearly 12% from the current trading level.

The positive sentiment reflects confidence in BMW’s strategic direction and its ability to deliver strong returns, even in a fluctuating market environment.