Stellantis, the world's fourth-largest automaker, maintained its 2024 financial forecast on Thursday and stated that it aims to increase its dividend payout ratio next year.
The company, formed by the merger of Fiat Chrysler and Peugeot maker PSA in 2021, plans to hold an investor day event on Thursday in Auburn Hills, Michigan.
Stellantis announced in a statement that the company will target the upper limit of its 25% to 30% dividend payout policy in 2025, compared to the 25% paid in recent years.
“The company will continue to return excess cash to shareholders through share repurchases and ordinary dividends,” Stellantis said.
Stellantis' investor day event coincides with the European Union authorities' announcement of imposing additional tariffs of up to 38.1% on imported Chinese electric vehicles starting in July.
The group's brands, including Jeep, Ram, Citroën, Opel, and Alfa Romeo, confirmed its current year's forecast, including an adjusted operating income margin of 10% to 11% for the first half and "significantly lower industrial free cash flow compared to the same period last year."
Additionally, the company stated that in 2024 it would return at least €7.7 billion (approximately $8.32 billion) to shareholders through dividends and buybacks.
