MBB SE's Dividend Machine: A Safe Bet With 15 Consecutive Raises—and a June 18 Deadline to Jump In!

If you're looking for a dividend stock that's both reliable and future-proof, MBB SE (ETR:MBB) is screaming your name. This German conglomerate is set to deliver its 15th consecutive dividend increase this year, paying out a €3.33 per share dividend—the highest in its 30-year history. And with a conservative payout ratio (just 16% of net income and a mere 5.2% of free cash flow), this is a dividend machine you can trust. But here's the kicker: to lock in this payout, you need to act before June 18, the ex-dividend date. Let me break down why this is a must-buy—and why MBB's growth story is just getting started.

The Dividend: Safe as a Fortress, Growing Like a Rocket

MBB SE's dividend isn't just a one-off payout—it's the result of a 15-year streak of growth fueled by its diverse portfolio of subsidiaries. Let's start with the numbers:

At just 16% of net income and 5.2% of free cash flow, this dividend is crunching the numbers like a Swiss watch. Even in 2024, when net income hit a record €37.66 million (a 210% jump from 2023), MBB still left €34.3 million on the table to reinvest in growth. That's the mark of a company that's not just giving you a check—it's building a future.

The proposed €3.33 per share dividend—a €2.22 special “30th-anniversary” boost on top of the standard €1.11—reflects confidence. And with a net cash pile of €553.9 million, MBB has the liquidity to fund both dividends and expansion. This isn't a dividend that's stretching its limits—it's one that's living within its means.

The Growth Engine: Why This Dividend Will Keep Growing

MBB's subsidiaries are its secret sauce. Let's break down the segments driving this train:

1. Friedrich Vorwerk (energy infrastructure): Revenue jumped 33.5% in 2024 to €498.4 million, fueled by Germany's push to modernize its grid. Picture this:

2. Aumann (automation and robotics): Revenue rose 7.9% to €312.3 million, with EBITDA surging 71% as factories automate.

3. DTS (IT security and software): Despite a slight revenue dip, its software division (like its DTS Cockpit platform) is booming.

4. Hanke (flooring and insulation): Back to profitability after years of struggling with energy costs.

These businesses are not one-trick ponies—they're anchored in sectors with long-term tailwinds, like energy transition, automation, and cybersecurity.

The math here is simple: 9.2% annual EPS growth over five years means shareholders aren't just getting a dividend—they're getting a compounding return.

The Play: Buy Before June 18—Or Miss the Boat

Here's the deal: To collect this €3.33 dividend, you need to own MBB shares before the ex-dividend date of June 18. After that, the stock trades “ex-dividend,” and new buyers won't get the payout.

But this isn't just about the dividend—it's about owning a company that's got cash to burn. With €553.9 million in net cash, MBB can:
- Double down on growth (like its €37.8 million in share buybacks in 2024).
- Acquire smaller rivals (e.g., its €9.6 million stake increase in Friedrich Vorwerk).
- Weather any economic storms (even if Germany's economy stumbles, MBB's backlog of energy projects is €1.2 billion strong).

The Risks? Sure—But They're Manageable

No stock is risk-free. Delignit's caravan division and CT Formpolster's mattress business face soft demand, and a German recession (GDP dipped 0.1% in Q2 2024) could slow things. But MBB's diversification and cash-rich balance sheet are buffers.

Final Call: This Is a Dividend Stock for the Ages

MBB SE is the kind of stock that sleeps well with:
- A 15-year dividend growth streak (in a world where most companies can't promise two).
- A payout ratio so conservative, it's practically a savings account.
- Subsidiaries in sectors that don't just grow—they're future-proof**.

Don't miss this train. Buy MBB before June 18—and let this dividend machine work for you.

Disclosure: This analysis is for educational purposes. Always do your own research before investing.