Buy VW shares or not? Our future forecast 2022!

John James
October 13, 2021
We have dealt with this question in more detail, and here we describe How to buy VW shares? what to consider when buying Volkswagen shares and how the VW share price can be viewed.
Buy VW shares or not? Our future forecast 2021!

The automobile manufacturer is generally regarded as a formative company that has helped shape the economy. For a long time, it was the largest automobile manufacturer in the world. And to this day, Volkswagen is flourishing around the world and enjoys an excellent reputation. 

And where is the best place to invest in shares in the automaker? We have dealt with this question in more detail, and here we describe what to consider when buying Volkswagen shares and how the VW share price can be viewed.

Table of Contents

Buying VW shares – what should you watch out for?

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

  • Why should one invest in VW shares? As one of the largest automobile manufacturers in the world, VW is not only designed for the broad market but is also accepted widely. VW has steadily increased its sales by over 1% and its profits by over 12% over the past year. VW is also way ahead in terms of electric mobility, which leads us to a clear buy recommendation for VW shares.
  • Where can you buy VW shares?  One can purchase VW shares 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 the future of VW shares look like? We look to a future that will continue to scale. In the opinion of our experts (and other stock market experts), the share will rise to over € 190 in the medium term.

Where and how to buy VW shares Best brokers in comparison:

Rating

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Min. Spread

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Likes

4.9/5
250
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  • Commodities
  • Forex 40 +
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  • Forex
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  • Commodities
  • Stocks

 

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  • Forex 40+
  • Metals
  • Commodities
  • Stocks
  • Indices
  • Cryptocurrencies

 

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Buy VW shares in 3 steps: Our guide

1. Registration with a broker

To be able to buy VW shares, you first have to register with a broker. It is advisable to pay particular attention to deposit protection. Should the broker go bankrupt, the shares still belong to you. Anyone who waives this deposit protection will be left without shares in the event of the broker’s bankruptcy.

If stock selection and evaluation are too complicated, a social trading platform can also be a good solution. Here you simply follow an experienced trader and automatically copy the trader’s trading decisions.

Our broker recommendation at this point is ROinvesting – with state-guaranteed deposit protection of up to 20,000 euros and 0% commission when buying shares, ROinvesting is our test winner broker. To register with ROinvesting, click here.

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

ROinvesting

2. First deposit

After registering, you need to decide how much to invest in stocks. We generally recommend that you never invest more than 5% of your capital in a single share.

Once you have decided on the amount you want to invest, click on the ” Add Money ” button after registering with ROinvesting.

You can now choose from various deposit methods, including PayPal, credit card or bank transfer.

Below is an overview of all the payment methods available at ROinvesting:

Payment optionPossible?
Buy VW shares with a credit card✔️
Buy VW shares with PayPal✔️
Buy VW shares with Skrill✔️
Buy VW shares by bank transfer✔️
Buy VW shares with Neteller✔️
Buy VW shares with UnionPay✔️

3. Buy VW shares online

Now that your money has arrived, enter the name of the stock you want to buy in the search field. Then press the blue “Trade” button in the upper right corner.

A small window will open to set the price and number of shares you want to buy. You can also set stop loss and take profit, i.e. at which price the share should be sold again in the event of a gain r loss. The two fields are optional.

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

With a click on ” Place order ” the purchase is completed, and the share appears in your portfolio.

Information on the VW share

Share price & key figures

In the last 10 years, VW shares have performed amazingly despite the emissions scandal. In the spring of 2009, the price was less than 40 euros. Ten years later, you have to invest almost nine times as much for a VW share. With a market capitalisation of nearly 75 billion euros, VW is one of the heavyweights of the DAX.

In the 3rd quarter of 2018, the VW course was surprised with extraordinarily promising figures: It was possible to increase sales by 2.7% compared to the previous year and increase sales by 0.9%. Overall, a very positive development for VW, which suggests that the crisis triggered by the emissions scandal has now been overcome. As a result, the VW course went up recently.

VW has seen turbulent times, even though the figures now clearly show recovery. With these prospects, the chances of further positive development of the VW share increase. So if you want to secure the portfolio with a blue-chip, VW is the right choice.

VW share dividend 2016 to 2021:

Dividend per shareReturn in%year
** € 6.46** 3.552021
€ 3.551.952020
€ 4.862.812019
€ 4.863.492018
€ 3.962.352017
€ 2.061.512016

The VW (Stamm) Aktien Dividend was paid out on October 5th, 2020. The dividend was € 3.55 per share, which corresponds to a dividend yield of 1.95%. The dividend for 2021 is expected to be € 6.46 per share, which is based on the current share price. It may result in a yield of 3.55%.

VW Share News & History

If you want to trade in stocks, you should first look at the company behind the stocks in question. For example, VW’s history began in 1937 when Ferdinand Porsche developed the first “Volkswagen”.

The first production facility was put into operation in Fallersleben, which ultimately allowed the city of Wolfsburg to develop. Wolfsburg is still the headquarters of VW today. The company was founded under the rule of the National Socialists. The British military administration finally continued it after the war’s end. 

In 1960, the Volkswagenwerk GmbH was finally converted into Volkswagen AG. Just four years later, Audi Union GmbH, later called Audi, was taken over by Daimler Benz.

Strong performance in the 60s and 70s

From then on, the company developed excellently, and in 1972 it had an annual turnover of 16 billion DM. With almost 200,000 employees, VW was one of the largest employees. However, VW’s most important workhorse was initially the Beetle.

The vehicle, which has been in production since 1945, became one of the classics in automotive history and is still extremely popular today. In 1972 the number of 15 million VW Beetles was exceeded, making it the first automobile manufacturer to outperform the Model T from Ford.

Into the 21st century

In the last decades of the 20th century, new markets were increasingly opened up, and a wide variety of Volkswagen models were sold as far as South America and Asia. This trend of good VW share news continues to this day and is, not least, a secret of the Group’s success. VW has long made most of its profits in the People’s Republic of China.

The exhaust scandal

In 2015, VW finally got into a tailspin with this share news: The emissions scandal. In the USA, the company had manipulated tests to falsify their diesel vehicles’ emission values. The stock lost a whopping 23% on the day it was announced. The first reaction was the sale of various models. The fines were devastating – a total of more than 28 billion euros had to be paid.

In the meantime, however, the VW Group has recovered slightly. This can be seen from the current quarterly figures. Thus, overall, VW seems to have solid prospects for the future. This, however, provided that one can prepare for future challenges: electromobility, increasingly saturated markets in Asia (such as the competitor NIO ), and stagnating core markets.

VW Shares – Buying or Selling?

  • Increasing sales
  • Growing profit
  • Currently very cheap
  • Strong in terms of electric automobility
  • Past scandals

VW share: arguments to buy the VW share

One thing is clear: Buying Volkswagen shares in real-time is an investment in a traditional company. VW stands for the highest quality, reliability and tradition. With the acquisition of shares in a company like Volkswagen, you have a position in the portfolio that stands for relative security, constancy, and strength.

The group has proven over decades to be able to operate successfully and has considerable resources and capacities. Moreover, the market position of such a company is also an essential basis for successful long-term developments.

Stagnating core market – boom in Asia

However, even a large corporation like Volkswagen has struggled with problems in recent years. The exhaust scandal, in particular, has hit VW hard. In addition, the sales figures for cars in the core market of Europe have been stagnating for several years.

Only sales in China are developing extremely well. In the long term, Volkswagen could also run into problems because it has not invested enough in innovation for a long time. For example, developments such as electromobility have not been taken seriously enough at the Wolfsburg headquarters for a long time.

The situation for Volkswagen shares is therefore excellent. But it does raise questions for the future. There is still uncertainty in the VW Aktien Forum.

But how do you buy Volkswagen shares in real-time? And where can the VW share price target be seen? We took a close look at how you can purchase shares in this company online.

The VW share performed excellently in real-time. As is so often the case, however, the situation looks different in the context of time. In 2015, the group had to accept a bitter damper with the scandal over falsified emissions. And this is not least noticeable on the stock market.

The price lost almost two thirds from the all-time high of around 250 euros. Within a few weeks, it crashed to less than 100 euros. Since then, the VW course has developed positively and is approximately 150 euros. As expected, this was received very positively in the VW Aktien Forum.

Sell ​​VW shares? Sale arguments

It has to be said that the emissions scandal was by no means the only crisis that VW had to deal with in its more than 85-year history. However, this was without a doubt one of the most significant tests for the former flagship company. Not only was consumer confidence permanently shaken – a lot of money had to be invested through retrofitting, product recalls and, last but not least, high fines to prevent the worst.

Quite a few experts saw the crisis of 2015 as an existential one for the group. After all, the scandal is said to have cost VW a total of over 28 billion euros. The VW Aktien Forum was shocked.

A few years have now passed, and VW has recovered quite well from the scandals. In any case, the price development on the stock exchanges suggests that this has been achieved. And basically, there seems to be little to be said against the fact that this trend should not continue. The VW share price target could therefore be set upwards.

Buy VW shares or not? Our future forecast 2021!

Fees when buying VW shares

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

  • Purchase of VW shares worth € 1,000
  • Hold the VW 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 freefreefor free
Purchase fees€ 2.20free3.08%
Holding feesfor freefree0.05%
Sales charges€ 2.20spreads3.08%
Total fees€ 4.40Reasonable€ 92.32
Is it worth buying VW shares – yes or no?

After the problematic years described above, quieter times now seem to be waiting for VW again. And in most cases, this is a reasonable basis for rising prices. Moreover, the sales figures in China also promise a good development – because the home market is stagnating and can no longer generate the necessary profits on its own.

In any case, the company is dependent on business in developing countries. And the market position there is quite good. It is one of the most popular and well-known car brands in the world. And above all in the significant Chinese market.

The company delivers stable figures and has a very long history of success – so you know how to develop nicely in the long term. And the decision-makers at Volkswagen will act conscientiously in this tradition. So that will be good for the course.

However, developments such as electromobility and car-sharing should not be ignored. The relevance of the automotive industry should, however, be assured for the next few decades. And Volkswagen, as one of the most important car manufacturers in the world, has every opportunity to maintain its position.

VW share forecast 2021

Overall, one can be cautiously optimistic about the VW share forecast for the year 2021. However, buying VW shares is worth considering at the moment because the price is currently still well below the all-time high. In addition, the quarterly figures recently showed that VW is on the up.

The group has done its homework and is very well positioned in Asia. However, an important question will be how to position oneself in the approaching competition for alternative drives. The VW share forecast is, therefore, optimistic overall.

Conclusion

Buying VW shares – this is the idea that many investors still play with. The VW share forecast is slightly optimistic. And there are numerous arguments for it: It is one of the long-term most tried and tested companies globally. However, VW was significantly weakened by the scandals in 2015. Not only did the course plunge into the basement. The group also had to compensate for severe fines.

The latest figures, however, show that the Wolfsburg-based car manufacturer is back on the rise. In the long term, VW has been a stock that can be relied on over the past few decades. And there are quite a few arguments in favour of it staying that way. And you also get VW share dividends.

Buy VW shares or not Our future forecast 2021!

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FAQs

When you buy VW shares, you are investing in a traditional German company that has long since become an international institution. Another plus point when buying is that you can count on a VW share dividend.

Since it is one of the strongest companies in Germany, VW is of course part of the DAX, but can also be traded on XETRA and international stock exchanges.

Buying VW shares has become quite easy thanks to online exchanges such as Skilling or Plus500. You can usually bet on the VW course with just a few clicks. Attention: CFDs do not give you a VW share dividend.

When does Volkswagen pay dividends? Volkswagen pays a dividend 1 times a year. The payment month is July.

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