As Germany's DAX Index reaches new highs amid a backdrop of slowing inflation, investors are increasingly looking towards stable dividend stocks as a reliable source of income. In this environment, selecting stocks with strong fundamentals and consistent dividend payouts can be particularly advantageous.

Top 10 Dividend Stocks In Germany

Click here to see the full list of 31 stocks from our Top German Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Allianz

Simply Wall St Dividend Rating: ★★★★★★

Overview: Allianz SE, with a market cap of €109.24 billion, operates globally through its subsidiaries offering property-casualty insurance, life/health insurance, and asset management products and services.

Operations: Allianz SE generates revenue from three main segments: property-casualty insurance (€74.95 billion), life/health insurance (€45.52 billion), and asset management (€3.34 billion).

Dividend Yield: 4.9%

Allianz's dividend payments are well-covered by both earnings (60% payout ratio) and cash flows (23.1% cash payout ratio), ensuring sustainability. The company has a reliable dividend history over the past decade, with stable and growing payouts. Recent buybacks (€1 billion completed, additional €500 million authorized) and strategic partnerships, such as with Jetty, bolster its financial position. Earnings for H1 2024 were €4.99 billion, up from €4.37 billion last year, supporting continued dividend reliability.

• Take a closer look at Allianz's potential here in our dividend report.

• Our expertly prepared valuation report Allianz implies its share price may be lower than expected.

DATAGROUP

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: DATAGROUP SE provides IT solutions in Germany and internationally, with a market cap of €331.18 million.

Operations: DATAGROUP SE's revenue segments include €456.25 million from Services and €77.59 million from Solutions & Consulting.

Dividend Yield: 3.8%

DATAGROUP's dividend payments are well-covered by earnings (48.1% payout ratio) and cash flows (28.2% cash payout ratio), indicating sustainability despite a volatile track record over the past decade. The company reported earnings for the nine months ended June 30, 2024, with sales of €383.75 million, up from €367.52 million last year, though net income decreased to €18.34 million from €21.12 million previously. Trading at good value compared to peers and industry estimates, DATAGROUP shows potential for future growth but has a lower-than-top-tier dividend yield at 3.77%.