Bayer dividend policy and pharma pipeline, stock under long-term scrutiny

By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 13:24.

Bayer AG (DE000BAY0017) continues to reshape its balance sheet and portfolio while carrying a significant litigation and debt load. The DAX member trades on Xetra and faces a multi-year effort to restore financial flexibility through cost cuts, portfolio measures and a stricter dividend policy.

What Reuters and filings highlight

Bayer has warned that adjusted EBITDA in 2024 will likely decline due to weaker glyphosate pricing, higher costs and currency headwinds, as outlined in recent guidance comments. Reuters has detailed the new CEO's turnaround priorities.

New chief executive Bill Anderson has presented a cost-cutting program targeting at least 2 billion euros in annual savings by 2026, combining headcount reduction with streamlined structures. The program aims to support deleveraging after the Monsanto acquisition and large litigation payouts, which have weighed on Bayer's credit metrics.

Dividend reset and balance sheet focus

For the 2023 financial year Bayer switched to a variable dividend policy based on 40 percent of core earnings per share, abandoning its previous practice of a stable or rising payout. According to the company, this move is designed to preserve cash for debt reduction and investment in the pharma pipeline. The 2023 annual report describes the new dividend policy and leverage targets.

The group continues to target an investment-grade profile, but net financial debt remains high in absolute terms after the Monsanto deal, and rating agencies have highlighted limited rating headroom. Management has said that proceeds from potential portfolio measures, including possible divestments in Consumer Health or Crop Science assets, could support deleveraging, while stressing that all strategic options remain under review.

The product behind the stock

Bayer's Pharmaceuticals division is currently placing high strategic weight on elinzanetant, a non-hormonal drug candidate targeting vasomotor symptoms in menopause, and on the anticoagulant candidate asundexian, both of which are seen as potential growth drivers in the coming decade if late-stage trials succeed.

Where the stock trades today

Bayer AG shares most recently traded on Xetra around 27.50 euros, based on intraday exchange data as of 2026-06-27, 13:20.

This article was produced with AI assistance and editorially reviewed. Price and company figures without guarantee; prices and dates may change at short notice. No investment advice, no buy or sell recommendation. Stock-market transactions carry risks up to and including total loss.