One of the most obvious questions is whether you're interested in a consumer durables stock like Stellantis. Conservative investors or those with shorter investing horizons, for instance, may be less interested in an automaker. Consumer durable stocks tend to be cyclical, so those who are uncomfortable holding Stellantis through downturns should look elsewhere.
Another important consideration is whether you're looking to supplement your passive income. If you're looking for an interesting high-yield dividend stock, Stellantis is worth further investigation, especially since management seems focused on ensuring the company's financial security won't be jeopardized by a high payout.
Of course, it's not only auto investors that will find Stellantis stock alluring. With Stellantis' sizable position in Archer, investors can gain indirect exposure to Archer stock by picking up shares of Stellantis. The fact that Stellantis has signed an agreement to manufacture Archer's aircraft means even more exposure to Archer.
Lastly, if you're interested in an automaker that's embracing the transition to EVs, it's worth considering Stellantis stock in addition to EV pure plays like Tesla (TSLA -0.87%) and Rivian (RIVN +0.92%). Though Stellantis still sells internal combustion engine vehicles, it's expanding its lineup of EVs in the coming year. And while the company may represent less of a growth opportunity than Tesla and Rivian, it still stands to benefit from the growing demand for EVs worldwide.
Is Stellantis profitable?
For several years, Stellantis had increased profits. In 2024, however, the company hit a pothole. After reporting diluted earnings per share (EPS) of 5.31 euros ($5.82) and 5.94 euros ($6.51) in 2022 and 2023, respectively, the automaker reported diluted EPS of 1.84 euros ($2.02) in 2024.
Declining sales represented the main culprit in the company's inferior performance in 2024 compared to 2023. Stellantis reported only 5.42 million vehicle shipments in 2024, a 12% decrease from the 6.17 million reported in 2023.
Does Stellantis pay a dividend?
Stellantis has rewarded investors with a dividend. In 2023 and 2024, for example, it paid dividends per share of 1.34 euros (about $1.45) and 1.55 euros (about $1.68), respectively.