French automaker Renault SA (EPA: RNO) has proposed a dividend of €1.85 per share for the fiscal year 2023, marking a significant increase from the €1.60 paid in 2022. This move reflects the board’s strong commitment to rewarding shareholders amid improved financial performance. The payout ratio stands at 17.5% of the group’s consolidated net income, with full payment in cash. The ex-dividend date is set for May 22, 2024, and payment will follow on May 24.
As of May 20, 2024, Renault shares are trading at €50.20 — up 34.42% year-to-date and 49.12% over the past 12 months. The stock has ranged between €31.18 and €51.84 over the past 52 weeks, reflecting consistent upward momentum. With a P/E ratio of 6.28 and a dividend yield of 3.69% backed by earnings, Renault is gaining traction as a high-value stock with solid fundamentals.
Renault returned to profitability in 2023, reporting €2.2 billion in net income following significant losses in 2022 due to its exit from the Russian market. Vehicle sales rose 9% to 2.2 million units, driven by the launch of new models and increased average selling prices. Total revenue increased 13% year-over-year to €52.4 billion.
The company achieved a record-high operating margin of 7.9%, fueled by the strong performance of its three core brands: Renault, Dacia, and Alpine. Alpine led sales growth with a 22% increase, followed by Dacia at 14.7% and Renault at 9.4%. Renault’s market share in Europe jumped from 5th to 2nd place in just one year.
In 2023, Renault initiated a major realignment of its long-standing alliance with Nissan and Mitsubishi. The French group reduced its stake in Nissan from 43.4% to 15%, achieving parity with Nissan’s 15% holding in Renault. The three automakers also reinforced their collaboration in electric vehicles (EVs) through Ampere — Renault’s newly launched EV subsidiary.
Ampere, founded in November 2023, aims to sell 1 million EVs annually by 2031. Nissan and Mitsubishi have pledged investments of €600 million and €200 million, respectively, into Ampere. Renault is also planning to list Ampere on the stock exchange in the first half of 2024.
Renault CEO Luca de Meo noted: “We have restored trust through a balanced alliance, and Ampere represents our shared commitment to electrification.” Nissan’s solid-state battery technology, currently under development, is expected to be shared across the alliance to significantly boost EV range and performance.
Renault’s earnings comfortably cover its dividend, allowing the company to retain a majority of profits for reinvestment. EPS is forecast to grow by 83.1% in 2025, suggesting a lower payout ratio of 12% — a level seen as both sustainable and growth-oriented.
The group’s ongoing Renaulution strategy has delivered concrete results: stronger margins, competitive product lines, revitalized brands, and operational efficiency. As the global auto industry pivots toward electric mobility and technological innovation, Renault is not merely adapting — it is leading.
With solid earnings, strategic clarity, and a favorable valuation, Renault is increasingly seen as a high-potential stock for long-term investors.
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