The secret formula for stable returns: BASF, WashTec, and Volkswagen

BASF – Setting strategic priorities in a turbulent market environment

While the economic situation for the chemical industry remains challenging, Ludwigshafen-based chemical giant BASF is consistently pushing ahead with its strategic realignment. A key element of this is the planned listing of the Agricultural Solutions division as an independent Societas Europaea on the Frankfurt Stock Exchange by 2027. Under the leadership of Livio Tedeschi, the agricultural company is set to take off as an independent pure play with its strong market position and robust cash flow generation. The spin-off into legally independent entities is already underway, while a new management team will steer the transition to stock market readiness. BASF will remain the majority shareholder after the IPO and benefit from the development.

In the third quarter, BASF showed remarkable resilience in a challenging market environment. EBITDA before special items amounted to EUR 1.5 billion, slightly below the previous year's level of EUR 1.6 billion, but still just above market expectations. This stability was mainly due to positive volume effects in several segments, which partially offset the negative currency effects and ongoing price pressure. The Surface Technologies and Agricultural Solutions divisions performed particularly well, while Basic Chemicals continued to suffer from the imbalance between supply and demand. Revenue declined to EUR 14.3 billion.

BASF pursues a dual strategy of dividends and share buybacks when returning capital to its shareholders. The Company plans to distribute at least EUR 12 billion to its shareholders between 2025 and 2028. Dividends remain the foundation of this strategy. At least EUR 2.25 per share is planned annually, which adds up to around EUR 2 billion. But that is not all. Since November, BASF has been following up with an early share buyback program worth up to EUR 1.5 billion. This move sends a strong signal and demonstrates how much management believes in its own financial strength. The share is currently trading at around EUR 42.25.

WashTec – Operational strength becomes apparent

WashTec is setting a convincing pace. In the first nine months of 2025, the vehicle washing system specialist increased its revenue by 7.2% to EUR 358.2 million. Even more impressive is the development of operating profit (EBIT), which grew significantly stronger with an increase of 17.4% to EUR 32.4 million. The core operating figure, the EBIT margin, climbed from 8.2% to 9.0%. The third quarter was particularly noteworthy, with the margin reaching 11.8%. This growth was driven primarily by strong demand in Europe, while North America lagged somewhat due to currency effects. The high-order backlog signals that the momentum is likely to continue.

The reason for this is management's plans to offer its customers additional services. By connecting the car washes to WashTec's headquarters, it is possible to service the machines, sell cleaning products, and sell to end customers via WashTec's systems. This allows car wash owners to save on personnel costs, for example, when selling washes digitally. These new services mean that further growth is inevitable. This positive development has not gone unnoticed. Alantra EQMC Asset Management recently bought into the Company and now holds just over 20% of the voting rights. According to reports, Alantra is pursuing the goal of generating trading profits and reserves the right to influence strategic issues.

The financial strength directly benefits shareholders. WashTec maintains a reliable dividend culture and paid a dividend of EUR 2.40 per share for 2024. At the current price of EUR 44.20, this corresponds to an attractive yield of around 5.4%. Regular distributions have been made for five years, most recently with an increase of 9%. As a further sign of confidence, management has launched a share buyback program worth up to EUR 5 million, which will run through May 2026. By November 14, 5,434 shares had been repurchased. This combined strategy of dividends and buybacks underscores the focus on a value-oriented shareholder policy.

Volkswagen – Where does the automotive giant really stand?

The latest figures from the Volkswagen Group read like a story with two sides. On the one hand, the operating business is showing strength, with deliveries rising slightly, driven by robust growth in Europe and South America. The electric fleet in particular scored with impressive growth of 42%. On the other hand, massive special effects of EUR 7.5 billion, including US tariffs and value adjustments at Porsche, are weighing heavily on the balance sheet. Operating profit slumped by 58%. The key question for investors now is whether operational strength can outweigh structural burdens in the long term.

Strategically, the group continues to focus on cost discipline and accelerated electrification. The 64% jump in orders for electric vehicles in Western Europe confirms this course. CFO Arno Antlitz also emphasized strict control of investments. The EUR 165 billion capital expenditure program is seen as an upper limit, which should ease the pressure on free cash flow in the long term. Targeted restructuring measures aim to make better use of economies of scale and thus stabilize margins. The challenge remains to increase the profitability of electric models, while combustion engines remain the cash cow.

For yield-oriented investors, the dividend on preferred shares is an important anchor point. The latest distribution of EUR 6.36 per preferred share may have been lower than in peak years, but in the current stock market environment, it offers a remarkable yield of around 6.5–7%. This attractive dividend yield, supported by a binding dividend policy with a target ratio of 30% of consolidated net income, creates a noticeable psychological and financial floor for the stock. The question is whether the dividend can be maintained at this level. The share is currently trading at EUR 94.34.

In uncertain times, dividend stocks offer valuable stability. BASF is proving to be remarkably resilient in the difficult chemical environment thanks to its strategic focus and clear capital return. WashTec impresses with its operational strength, growing margins, and attractive dividend yield. Volkswagen is countering massive special effects and structural burdens with cost discipline. For investors who are looking for consistent returns, it is worth taking a look at these established names with their reliable dividend culture.