04. Stellantis N.V. (NYSE:STLA)
Dividend Yield: 5.81%
Payout Ratio: 36.65%
Despite a bumpy start to 2025, Stellantis N.V. (NYSE:STLA) is still a stock dividend investors should seriously consider. With a generous dividend yield of 5.81% and a conservative payout ratio of 36.65%, the company has plenty of headroom to maintain or even grow shareholder returns. What's more compelling is its rock bottom forward P/E of just 3.76, PEG ratio of 0.69, and a debt to equity ratio of 0.46, a strong financial profile that suggests value and discipline.
Yes, Q1 earnings came in below expectations, with a small EPS miss. But zoom out, and the bigger picture reveals a company working through short term supply chain hiccups and tariff headwinds while setting the stage for a powerful commercial rebound.
Stellantis N.V. (NYSE:STLA) shipped 1.22 million vehicles in Q1, down 9% year over year, yet management was upbeat about the progress in key markets. In Europe, Stellantis gained momentum, with market share climbing to 17.3%, the highest in over a year. The company also became the #1 player in hybrid vehicles and #2 in BEVs, fueled by the successful launch of new models like the Fiat Grande Panda and Opel Frontera.
In North America, things are turning around after strategic inventory reductions and pricing adjustments. Retail demand for key models like the Jeep Grand Cherokee and Ram trucks is picking up, and the recent refresh of several models positions Stellantis well for the second half of the year.
Even with temporary revenue pressure, the company is playing smart defense against tariff uncertainties while continuing to optimize operations globally. Stellantis N.V. (NYSE:STLA) is also investing heavily in electrification and innovation, all while keeping a tight grip on costs and maintaining capital discipline.
With a combination of deep value, strong dividend income, and clear signs of a turnaround in core markets, Stellantis N.V. (NYSE:STLA) could offer a powerful upside for investors looking beyond short term noise. This is a classic case of a beaten down stock with the fundamentals to bounce back, and reward patient shareholders along the way.