Buy BMW shares or not? Our future forecast 2022!

Mark Norgate
October 4, 2021
Buy BMW shares or not? Our future forecast 2021!

Bayrische Motoren Werke Aktiengesellschaft is one of the largest companies in Germany and a figurehead for the pioneering German spirit in the world.

With over  1.4 million vehicles sold in the first half of the crisis year 2020 alone, one thing is sure –  BMW is and will remain one of the leading automobile manufacturers worldwide. The share is still an opportunity to invest in the domestic market!

While its best-known brand is undoubtedly BMW itself, Rolls-Royce and Mini are also among its offerings.

The company is also anchored in the motorcycle industry, supplying customer engines to Toyota, Land Rover and Jaguar. 12% of all motorcycles in Germany come from BMW plants. According to the prosecutors, the long-established company suffered from the diesel exhaust scandal, in which exhaust gas values ​​were deliberately falsified, a collapse in the otherwise relatively little volatile shares.

The question arises, is it worth buying BMW shares since BMW, Daimler and Volkswagen demanded expensive retrofits, and competitors like Tesla want to revolutionise the market?

Table of Contents

Buying BMW shares – what should you expect?

You should pay attention to the following points when buying BMW shares:

  • Why should you invest in BMW shares? BMW is one of the leading automobile manufacturers made in Germany with a solid business model!
  • Where can you buy BMW shares? BMW shares can be bought from any online broker. However, we recommend our test winner broker Roinvesting. In our opinion, Roinvesting is the absolute best stockbroker, as you can buy stocks and ETFs here completely free of charge.
  • What can be the future of BMW? With increasing competition from, for example, NIO, BMW is also forced to invest in electromobility or alternative drives – we expect a successful adaptation and rising prices.

Where to buy BMW shares Best brokers in comparison:

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How to buy BMW shares? Our guide in 3 steps

As a top DAX-listed company in Germany, the BMW Group is interesting for all investors – from private individuals to large institutions.

If you buy shares, it should be mentioned that the company is predominantly (48%) in the hands of the Quandt family.

The family members have a lot of decision-making power on the company’s supervisory board and can look back on decades of experience. Therefore, the experience and knowledge of board members, executives and major shareholders should be considered when comparing BMW shares for and against.

Most companies in the automotive industry have far fewer people with comparable experience.

BMW can be traded with numerous online brokers. This is straightforward to do, even as a beginner.

The purchase of shares is often much less complicated than is generally assumed as a layman. This applies above all to the purchase of shares that are listed on the DAX.

  1. Registration with a broker

To buy a share, you always need a broker who buys the share on the market and then holds it in custody. It is advisable to pay particular attention to the deposit protection, or should the broker go bankrupt, the shares still belong to you. Anyone who waives this deposit protection will be left without shares if the broker goes bankrupt.

Our broker recommendation at this point is Roinvesting – with state-guaranteed deposit protection of up to 20,000 euros. To register, click here.

If you have decided on a broker, log in with your data and verify your email address and any other data.

ROinvesting

  1. First deposit

After signing up, you have to decide on how much to invest in stocks. We generally recommend never investing more than 5% of your capital in a single share.

Once you have decided on an amount, click on the “Add money” button after registering with Roinvesting.

Now you can choose between different payment methods, including PayPal, credit card or a bank transfer.

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 Buy BMW shares online.

After the deposit, the money appears in your account under the menu item “Account”.

First, look for the corresponding share in the search bar above and click on the “Trade” button.

A small window opens (see screenshot) in which you set the price and how many shares you want to buy. Stop-loss and take-profit can also be selected, i.e. at what price the share should be sold in the event of a profit or loss.

The two fields are optional.

With the Leverage field, you can control whether you want to buy the real share (x1 leverage) or a CFD (x2 or more leverage).

The purchase is completed by clicking on “Place order,” and the share appears in your portfolio.

BMW share price (price), dividend, target price & key figures (finances):

As a financially and, above all, technologically strong company, BMW has been coveted on the stock exchange practically throughout the past decades. In the past two decades, in particular, investors have been able to look forward to a rising BMW share price.

At the 2003 Annual General Meeting, the price was 29.19 euros, with a dividend distribution of 1.57 percent. Today the BMW share price is around 54 euros, with a dividend of 5.58 percent.

The diesel scandal and the retrofitting associated with it and the Corona crisis could only shake the car manufacturer for a short time.

What does a BMW share cost?

The price of the BMW share is currently € 86.20 (as of March 18, 2021). The BMW share has largely moved sideways over the past five years, hovering in a range between € 70 and € 80 per share.

The share collapsed in March 2020 and sank to a price of € 40 per share. Since then, the share has been able to recover and is now at € 86.20 per share and has thus more than doubled its value within a year.

BMW share price & key figures

How is the BMW share currently doing?

Suppose you are only interested in a short or medium-term investment and do not want to keep the company in your portfolio for an exceptionally long time. In that case, this completely changes your perspective on the BMW share price. Nevertheless, an optimistic BMW  share forecast can also be foreseen here. The main reason for this is the collapse of the share price in the past few months, primarily caused by the negative reporting and the factually little justifiable but media-wide involvement in the diesel emissions scandal.

At least a moderate upswing can be expected in the short to medium term. However, after the prolonged slump during the diesel scandal, anti-cyclical development – to expect an upswing is realistic and should be considered when comparing the BMW share pros and cons.

How many BMW shares are there?

As can be seen from the key figures from BMW, there are currently 602 million shares, which together result in a market capitalisation of 45.3 billion euros. In addition, BMW generates current sales of EUR 778,977 per employee.

Who owns the BMW shares?

After Johanna Quandt died in August 2015 at the age of 89, there were initially uncertainties about the legacy of the major BMW shareholder. However, in 2018 Stefan Quandt and Susanne Klatten shared their mother’s inheritance among themselves. Stefan Quandt currently holds a blocking minority of around 25.8 percent, while his sister Susanne Klatten holds 20.9 percent of BMW shares. The result did not change anything in BMW’s free float at the time. So currently, 46.8 percent of the shares in BMW are still in the hands of the Quandt family. According to their statements, neither Stefan Quandt nor Susanne Klatten currently intends to part with their shares.

Buy BMW shares or not? Our future forecast 2021!

BMW share dividend 2016 to 2021

yearReturn in%dividend
20163.943.50
20174.614.00
20184.953.50
20193.422.50
20204.812.52
2021e** 3.70** 2.59

The BMW share dividend varied widely between 2016 and 2021. In 2018, for example, there was a dividend of 4.95% compared to a dividend of 3.94% in 2016. The change in the percentage return due to a dividend at BMW in these years results solely from a change in the share price, as in both Years, the same amount of dividends was paid out.

In 2019 the dividend was € 2.50 per share (which is a dividend yield of 3.42%), and in 2020, the dividend was € 2.52 with a dividend yield of 4.81%

An overview of the BMW share dividends from 2016 to probably 2021 can be found in the table above.

When does BMW pay the dividend?

BMW usually announces the amount of the dividend during its annual general meeting. The actual dividend payment then takes place a few days after the general meeting itself. For the year 2021, the Annual General Meeting is planned for May 12, 2021, and the dividend payment will be made on Monday, May 17, 2021, according to the plan. In the past, too, the general meeting of BMW took place in May, and this is unlikely to change shortly.

Buy BMW shares or not? Our future forecast 2021!

BMW share price target 2021

Currently, 24 analysts have issued a recommendation for BMW. Of the 24 analysts, 7 have a “Buy” recommendation, 2 have an “Outperform” recommendation, 12 analysts have a “Hold” recommendation, and only two analysts have an “Underperform” recommendation. One analyst has a “Sell” recommendation. In addition, 22 analysts have issued a price target forecast for BMW shares in 2021. The analysts’ median target is currently mostly positive and represents a profit compared to the current price. The highest BMW share price target for 2021 would correspond to a price increase of 29.3% compared to the current share price.

Development of the BMW share

The best year for BMW shares so far was 2012, when BMW shares grew by 38.21%, while in the following years, between 2013 and 2019, it largely went downhill. However, since the last price low of the BMW share in March 2020, the share has doubled and is currently in a strong upward trend.

BMW preferred share or BMW common share

At BMW, you have the choice between two different stocks. The BMW share with WKN 519000, and the BMW share with WKN 519003. These are ordinary shares and preference shares. The main difference between these shares lies in their voting rights. Only the ordinary shares of a stock corporation have voting rights, while preference shares do not have any form of co-determination.

As a result, holders of preference shares cannot participate in decision-making at the BMW general meeting. However, this waiver is usually paid to the holders of preferred shares, so they are generally entitled to a higher dividend payment. In addition, preference shares are more protected than ordinary shares in the event of BMW bankruptcy. This usually means that preference shares are priced more cheaply.

Of course, this also raises the question of which share is more attractive for you as an investor. In the end, that depends entirely on what you want to achieve with an investment in BMW. If dividends are your primary concern, you should generally be better off with the benefits of preferred stocks. Would you, however, like to have an active say and make use of your voting rights at the Annual General Meeting? Then it would be best if you went for the common stock.

Buying or Selling BMW Shares? Our analysis:
  • Traditional group
  • Large automobile manufacturer with long experience
  • Long-term leasing contracts with large German companies (Schwarz Group)
  • High investments in alternative drives
  • BMW is in demand as a status symbol, especially in Asia
  • Political decisions can influence the course
  • Dependence on business customers

BMW share: arguments to buy BMW shares

BMW is undoubtedly one of the strongest automobile groups in Europe.

The company was founded in 1916 and has been one of Germany’s leading automobile manufacturers for almost a century. Since 1994 it has been a listed company that belongs to the top of the German share index.

According to Forbes Global 2000, the company is the 40th largest listed company worldwide.

If you want to buy BMW shares, you should primarily look at their current economic performance and other BMW shares key figures. However, for shareholders, the group is of interest for several reasons.

The group’s shares have fallen over the past few months. This is a plus point if you believe in an anti-cyclical buy and sell strategy (“buy when blood flows on the streets”). Because the company’s dividends are still good, profits in the first quarter of 2018 are 2.3 billion euros. The stock slump is significant, but it certainly does not fall into the abyss.

In August 2018, the group’s share was still around 83 euros. The loss in value of the shares in BMW is primarily due to the media coverage of the company and the involvement in the emissions scandal surrounding the emission values ​​of BMW, Daimler and Volkswagen vehicles. BMW is not the biggest player in the international scandal, but it is brushing past it thanks to some allegations and models.

No fines billions for lack of manipulation attempts

In contrast to Volkswagen, BMW is not accused of manipulation by the media or authorities. However, outside of the test stand, the BMW 320d cannot comply with the Euro 6 limit values ​​of 80 mg nitrogen oxide per kilometre.

The BMW 750d xDrive and other models with N57 engines are also affected. In total, however, fewer than 20,000 cars are affected. For comparison: In 2017 alone, the group sold more than 2 million BMW models.

Because no attempts at manipulation were found at BMW, the group will probably only have to pay a small fine. Therefore, buying BMW shares can be particularly useful in the medium and long term because the BMW share key figures cannot justify the 16 percent drop in the last six months.

BMW records higher profits and sales figures year after year – despite sometimes negative reports and office searches by the German authorities. From 2016 to 2017 alone, sales rose from 94.163 to 98.678 billion euros, while BMW increased profits from 6.9 to 8.7 billion euros.

More sales are not only achieved in emerging markets but also industrialised nations. In Germany alone, the number of new registrations of BMW models rose by 2.5 percent.

The great demand in very saturated markets like Germany clarifies that a BMW share investment can pay off.

The boom in the e-car business and MINIs

BMW can strengthen its position in the e-car business through its branding as a premium car, and it is continuing to expand advanced engine technology.

BMW was able to sell 30 percent more e-cars and hybrid models in 2018 than in the previous year – this shows that a BMW share investment can also be worthwhile in the long term.

Especially the i3 shown here but also the iconic i8 gives BMW an enormous recognition value in the e-mobility scene!

The retro brand MINI celebrated its best year so far in South Africa in 2018. More than 50,000 models were registered in Germany that year, an increase of 8 percent .

The head of MINI South Africa also emphasisessummarised the progressive expansion of their production:

“Despite the challenging market environment, we were able to achieve a significant increase in volume thanks to our strong partners in retail and our attractive product portfolio. We have thus further consolidated our good position among the premium brands and further expanded our market share in the overall and premium market.”

Buy BMW shares or not? Our future forecast 2021!

MINI South Africa

The attractive dividend represents another heavy one plus for a BMW share investment. At the current price of around 53 euros, BMW offers an annual return of 7.3% with a dividend of 3.89 euros.

That is well above average and particularly attractive for long-term investors who receive a BMW share dividend from investing passive income. Moreover, according to estimates by FactSet, investors can earn even more income overall over the next three years from the BMW share dividend.

However, if one assumes an increase in the value of the share, the percentage is secondary. What is important is the absolute BMW share dividend per year, which can climb significantly above 4 euros over the next few years.

Sell ​​BMW shares? Sale arguments

BMW is a globally known brand with a high reputation. However, because the company primarily sells cars in the upscale and luxury segments, the company depends mainly on the liquidity and willingness to buy from the upper class of buyers.

The classic BMW cars are considered a status symbol around the world.

In the BMW share pros and cons comparison, there are only a few scenarios that could be a reason for a sale:

  • Loss of reputation of the BMW, MINI or Rolls-Royce brands
  • Global economic crisis, which also inhibits the buying motivation of BMW and Rolls-Royce buyers
  • Larger scandal than the “Dieselgate” with a major impact on the BMW share key figures

Invest in BMW shares – buy BMW shares or not?

The probability of making a profit with BMW shares within the next few years is relatively high.

If you want to buy an attractive share in the short and long term, you are well-advised to go with the traditional company BMW not least because BMW’s sales have proven to be crisis-proof.

Because during the Great Depression of 2008, the decline in BMW models sold was slight, and at the same time, the number of Rolls-Royce sold even increased.

The group brings one crisis resistance, which makes a BMW share profit extremely likely in the long term.

BMW shares news & history

The BMW Group can look back over 103 years of company history. After it was founded in 1916, it only took two years to transform itself into a stock corporation. The company has been on a steep upward trend ever since.

With considerable orders for war production in World War I, the company gained worldwide attention and a leading position as an engine and car manufacturer in the early 20th century.

On the stock exchange, BMW paid a dividend for the first time in the post-war period in 1963. But otherwise, things are steadily improving with BMW – as early as 1969. Then, the group was already generating 1.5 billion DM per year.

In 2021, BMW will be diversified and can refer to a wide range of brands and holdings.

For example, since the 100th anniversary in 2016, the company has officially been aiming to mass-produce a self-driving vehicle in collaboration with Intel and Mobileye by 2021.

So if you ask yourself where to buy BMW shares, you shouldn’t just look at classic BMW car production beforehand.

Due to the high diversity of BMW – Husquarna, MINI, BMW and the sale of engines to competitors – the history of BMW shares are far more ramified than many people assume.

As a shareholder, if you ask yourself where to buy BMW shares, you should look for the provider with the lowest fees. Because while the company is less volatile than others in terms of share price development, the group offers a generous dividend payment – the history of BMW shares shows that very clearly.

How many cars does BMW produce each year?

In 2019, the BMW Group increased car sales by 1.2% to a new record of 2.5 million deliveries of BMW, Mini and Rolls-Royce vehicles worldwide. The brands BMW, Rolls-Royce and BMW Motorrad also recorded new highs in 2019, and sales of electric BMW and MINI vehicles also rose. By the end of 2019, the BMW Group had already had half a million electric vehicles on the road worldwide. As a result, BMW claims it has been the world’s leading premium automotive company for the 16th year in a row. B.

The BMW Group’s deliveries by brand in 2019 were as follows:

 

brandNumber in 2019% Change
BMW Group2,520,307+ 1.2%
BMW2,168,516+ 2.0%
BMW M GmbH135,826+ 32.2%
MINI346,639– 2.52%
BMW electric vehicles145.815+ 2.2%
Rolly Royce5,152+ 25.4%
BMW motorcycle175.162+ 5.8%

 

The BMW brand recorded a new all-time high in 2019 with a total of 2,168,516 (+ 2.0%) vehicle deliveries worldwide. The new and revised BMW X models made a significant contribution to this positive development. Sales rose by 21.0% to 958,732 vehicles . Thanks to the new BMW 8 Series, the new BMW 7 Series and the brand new BMW X7, sales in the luxury segment increased significantly by 66.0% (105,331 vehicles) over the year as a whole.

Fees when buying BMW shares ROinvesting

We compare the fees of the largest brokers with the following example:

  • Purchase of BMW shares worth € 1,000
  • Holding the BMW share for one month and then sell
  • No course changes in the 30 days

With these assumptions, we now compare the fees of Libertex, Roinvesting & Plus500 :

providersLibertexRoinvestingPlus500
Depositfor freefor freefor free
Purchase fees€ 2.200%3.08%
Holding feesfor freefor free0.05%
Sales charges€ 2.200%3.08%
Payoutfor free5 USD1.9%
Total fees€ 4.40€ 4.22€ 92.32

BMW share forecast 2021 – should you buy BMW shares now?

The BMW share forecast could be summarized as follows:

A moderate increase in the stock’s value is likely.

Although BMW is already powerful in many industries, the share has long-term potential because it still has excellent growth potential.

It is to be expected that the media interest in the involvement of BMW in the “Dieselgate” will decrease in 2021. The consequence will be a moderate bull run for BMW, which is why more and more people are asking themselves where to buy BMW shares. The possibilities are great.

Arguments for buying BMW shares are no longer difficult to find.

Buy BMW shares Conclusion – Our opinion and recommendation.

How to buy BMW stocks is a question many people ask themselves. BMW shares can easily be bought through numerous online brokers.

Nevertheless, one should worry about where to buy BMW shares and how it is easiest to gatherit enough information about the company itself.

The BMW share history and direction of the company shows that a massive slump is unlikely in the next few years. Instead, a moderate increase is extremely realistic.

 

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FAQs

BMW pays generous dividends. As a result, investors can benefit from dividends as well as price gains.

BMW pays generous dividends. As a result, investors can benefit from dividends as well as price gains.

BMW shares can be easily bought through numerous online brokers. After successful registration and payment, you can immediately invest in shares.

We see a relatively promising future for BMW. Buying shares could be worthwhile

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