Mercedes-Benz Stock: Dividend Cut and Internal Restructuring Add to Tariff Jitters as Shares Hold Near Low
Published on 06/21/2026 at 16:26 | Redaktion boerse-global.de
The German auto major is navigating a storm on multiple fronts. With its shares down nearly 27% since the start of the year and trading barely above a fresh 52-week trough, Mercedes-Benz is grappling with a dividend reduction, internal calls for faster decision-making, and a potential shift in European trade policy that could offer some relief. The stock closed Friday at €45.09, just 2.5% above the low of €43.99 hit two days earlier.
European Union regulators are preparing to close a loophole that has allowed Chinese plug-in hybrid vehicles to enter the bloc at a standard 10% tariff, while fully electric models have faced additional duties of up to 35.3% since late 2024. According to Handelsblatt, the EU Commission is launching an investigation aimed at imposing countervailing duties on Chinese PHEVs. For Mercedes-Benz, which relies heavily on electrified combustion engines and hybrids in its home market, shielding its margins from subsidized Asian rivals would be directly beneficial.
The dividend payout for the current financial year has been slashed to €3.50 per share from €5.30 previously, reflecting the broader profit squeeze across the German auto sector. BMW also cut its distribution, and its free cash flow forecast for 2026 was reduced from €4.5 billion to €2.5 billion. Mercedes-Benz, by contrast, still expects around €3.5 billion in free cash flow, a figure that makes its balance sheet look relatively sturdy by comparison.
Should investors sell immediately? Or is it worth buying Mercedes-Benz?
On the restructuring front, board member Britta Seeger — responsible for personnel and IT — publicly called for leaner processes and a more agile workforce over the weekend. She warned that the company is too slow to make decisions. The plea comes as Volkswagen eyes radical job cuts and BMW recently issued a profit warning due to weak Chinese demand and higher logistics costs. Mercedes-Benz is, for now, betting on internal optimisation rather than sweeping layoffs.
The group is also pushing ahead with product launches. In its Spanish plant in Vitoria, production has begun of the new VLE electric van, built on an 800-volt architecture promising faster charging and greater range. The model underscores the company’s intent to strengthen its position in premium electric commercial vehicles. Investors will get more clarity this week: Jefferies’ DACH Corporate Conference in Baden-Baden on Tuesday, along with flash PMIs for Germany and the euro zone, and the Ifo business climate index on Wednesday, could provide early indicators of industrial momentum.
From a chart perspective, the technical picture remains fragile despite the small bounce. The relative strength index at 32.5 is close to oversold territory, suggesting the selling pressure may have been excessive. But the stock still sits 18% below its 200-day moving average of €55.23, and recapturing the 50-day average at €49.98 is needed to signal any sustainable recovery. If support around €44 fails to hold, the next line of defence will be the half-year results, which will test whether the 2026 cash flow guidance remains credible.
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