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Stable: Reliable dividends

Not only good, but also cheap

The holidays at Volkswagen find no end. After the group achieved a record profit in the past financial year 2011, its goal is within reach: it wants to become world market leader. The share also benefits from this; Since the beginning of the year, the VW paper has increased by a whopping 15 percent.

There seems to be no end in sight: Although CEO Martin Winterkorn announced that he only wanted to maintain the high operating profit of 11.3 billion euros in 2011 in the current year, the majority of analysts still advise buying the shares. The average target price is 162 euros, well above the current value. “I still see enormous growth potential at VW,” says Christian Ludwig, an analyst at Bankhaus Lampe. In addition, the VW share is relatively cheap compared to other German car manufacturers. It is valued at eight times earnings, so the price-earnings ratio (P / E) is far below that of other papers.

Most recently it became known that the group subsidiary Audi wants to secure the right of first refusal on the Italian motorcycle manufacturer Ducati. This would enable the Wolfsburg-based company to expand their range of products even further. In 2012 alone VW wants to present more than 40 new models and variants.

Conclusion: Europe's largest carmaker announces one record after the other - that gives the share momentum. There is no end in sight.

Image: dpa