BASF investors are heading into a week that could reset the stock’s recent run, with the German chemicals group set to trade ex-dividend after closing at a three-year high. The €2.25 per share payout approved at last week’s annual meeting will be stripped from the price on Monday, and the cash is due to reach shareholders on 6 May.

The move comes after a strong start to the year for the shares, which have climbed by about 22% and finished last week just shy of their 52-week peak. That leaves the stock comfortably above its 200-day moving average, a technical sign of strength, although the dividend adjustment is likely to open an immediate gap that traders will be watching closely.

Alongside the payout, BASF is pressing ahead with an accelerated buyback that now appears to be approaching an important checkpoint. The company said in October that it would repurchase up to €1.5 billion of stock between November 2025 and June 2026, as part of a wider €4 billion buyback plan under its longer-term pledge to return at least €12 billion to investors by 2028. BASF said the shares would be cancelled, reducing capital and supporting earnings per share.

The scale of the programme marks a sharper capital-return stance than in previous years. BASF had already been active in the market by mid-March, when it reported buying back 17.5 million shares for €789 million. The group also set out a broader distribution target in its latest reporting, combining dividends and repurchases as it looks to keep cash flowing to shareholders while preserving balance-sheet flexibility.

At the same time, BASF is moving ahead with a structural change in its agribusiness arm. From 1 May, the agricultural solutions division began operating under separate leadership, with Dr Livio Tedeschi appointed to oversee the business as it heads towards a planned listing in Frankfurt. The parent company expects to retain a majority stake after the flotation, which forms part of its “Winning Ways” strategy and is intended to unlock value in a business that has long been seen as solid but somewhat hidden inside the larger group.

BASF’s first-quarter figures were more mixed. Revenue slipped 3% to €16 billion as weaker pricing and currency movements weighed on results, even though volumes improved and demand from China held up. Earnings per share came in at €1.06, and management kept its full-year guidance unchanged, forecasting EBITDA before special items of €6.2 billion to €7 billion and free cash flow of €1.5 billion to €2.3 billion.

For investors, the key question is whether the share price can absorb the ex-dividend adjustment and keep pushing through a technical resistance area around €54 to €55. BASF has repeatedly struggled near that band since 2023, and the combination of a stronger capital-return story, a pending agribusiness separation and steady guidance may determine whether the latest rally can extend beyond a simple post-dividend reset.

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Source: Noah Wire Services