For several years now, the Renault group has stopped paying a dividend to its shareholders. The Renault share is therefore no longer a yielding share. On this page, we will explain the reasons for this absence of dividend and tell you if it is possible that Renault will start paying its shareholders again in the future.
Unfortunately and for the last 3 years, Renault has not paid any dividend to its shareholders. Therefore, it is useless to buy this share as part of a yield strategy since it will not generate any regular income as long as the group's distribution policy does not change favorably.
However, it is possible to buy Renault shares in the hope that the dividend will return soon or as part of a growth strategy in the hope of making a future capital gain on resale.
Since 2019, no dividend has been paid to the shareholders of the Renault group, although they are used to receiving an amount every year without interruption since 1999, with the exception of 2009 and 2010.
Recently and in an official statement from the Board of Directors, the group has indeed announced that no dividend will be paid in 2022 for the fiscal year 2021. This is the third year in a row that investor-shareholders will not participate in the profits of the French automotive group. But why no dividend?
The last dividend paid by Renault was in 2019 and for the year 2018. The 2020 dividend for the 2019 financial year was in fact cancelled due to the Covid-19 pandemic that hit the automotive sector particularly hard. The following year, Renault also reiterated its desire not to pay its shareholders by not paying a dividend in 2021.
One might have expected a resumption of this dividend in 2022, but following the publication of the group's results in February, Renault explained that no remuneration would be paid this year again. The reason for this is the shortage of electronic components which continues to plague its activities and profitability. However, the group's turnover increased by 6.3% to 46.2 billion euros with a net result of 967 million euros in 2021.
If no clear communication has yet been issued by the Renault group regarding the possibility of paying a dividend to shareholders in 2023, this possibility remains to be considered.
It should be remembered that the Renault group used to pay an annual dividend to its shareholders and has done so for many years. Given that the current absence of a dividend is mainly due to poor economic conditions and low profitability, if these two parameters improve, it is possible that Renault will decide to attract new investors with an attractive dividend in the years to come.
It will therefore be interesting to follow the evolution of the group's quarterly financial results to see if it returns to growth. In the meantime, the Renault group will probably tend to use its cash flow to make investments that will boost its revenues.
Of course, you can still buy this stock online even if there is no dividend, in order to receive one in the future, or simply if you expect the share price to rise over the long term in order to realize a possible capital gain.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is unregulated in some EU countries and the UK. No consumer protection. Your capital is at risk.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.