Mensch und Maschine Software And Two More Top Dividend Stocks On The German Exchange

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Amidst a backdrop of fluctuating global markets and heightened trade tensions, Germany's DAX index recently experienced a notable decline. In such an environment, dividend stocks like Mensch und Maschine Software often attract attention for their potential to offer investors steady returns and some buffer against market volatility.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.32%

★★★★★★

Deutsche Post (XTRA:DHL)

4.64%

★★★★★★

MLP (XTRA:MLP)

5.30%

★★★★★☆

OVB Holding (XTRA:O4B)

4.71%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

8.34%

★★★★★☆

Südzucker (XTRA:SZU)

7.54%

★★★★★☆

DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)

7.25%

★★★★★☆

Deutsche Telekom (XTRA:DTE)

3.18%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.39%

★★★★★☆

FRoSTA (DB:NLM)

3.15%

★★★★★☆

Click here to see the full list of 30 stocks from our Top German Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Mensch und Maschine Software

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

Overview: Mensch und Maschine Software SE, with a market cap of approximately €0.91 billion, offers CAD/CAM/CAE, product data management, and building information modeling/management solutions across Germany and globally.

Operations: Mensch und Maschine Software SE generates its revenue primarily from providing solutions in computer-aided design, manufacturing, and engineering across various international markets.

Dividend Yield: 3%

Mensch und Maschine Software SE, a German software firm, has shown consistent growth in earnings and sales, as evidenced by its recent quarterly results with sales reaching €75.1 million and net income at €7.34 million. Despite this performance, the company's dividend yield stands at 3.04%, which is low relative to top German dividend payers. While dividends have grown over the past decade and are supported by cash flows (cash payout ratio of 64.5%), they are not well covered by earnings with a high payout ratio of 91.1%. Analysts predict the stock price could rise by 31.3%, but concerns about dividend sustainability due to coverage issues persist.

XTRA:MUM Dividend History as at Jul 2024
XTRA:MUM Dividend History as at Jul 2024

technotrans

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

Overview: Technotrans SE is a global technology and services company with a market capitalization of approximately €118.12 million.

Operations: Technotrans SE generates its revenue primarily through two segments: Technology, which brought in €188.31 million, and Services, contributing €63.04 million.

Dividend Yield: 3.6%

Technotrans SE's dividend sustainability is questionable with a history of unreliable and volatile payments over the past decade. Despite this, dividends are covered by earnings and cash flows, with payout ratios at 64.7% and 37.5% respectively. Recent financials show a significant drop in revenue to €56.04 million from €68.31 million year-over-year, and net income plummeted to €0.059 million from €2.2 million, indicating potential pressure on future dividend reliability despite current coverage levels.

XTRA:TTR1 Dividend History as at Jul 2024
XTRA:TTR1 Dividend History as at Jul 2024

Uzin Utz

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

Overview: Uzin Utz SE, with a market cap of €238.09 million, is a company that develops, manufactures, and sells construction chemical system products across Germany, the United States, the Netherlands, and other international markets.

Operations: Uzin Utz SE generates revenue through various segments, with notable contributions from Germany - Laying Systems (€210.21 million), Western Europe (€83.83 million), Netherlands - Laying Systems (€82.87 million), USA (€73.33 million), Netherlands - Wholesale (€36.31 million), Germany - Surface Care and Refinement (€35.16 million), Germany - Machinery and Tools (€32.53 million), and Southern/Eastern Europe (€25.98 million).

Dividend Yield: 3.4%

Uzin Utz offers a modest dividend yield of €3.39%, which is lower than the top quartile of German dividend stocks at €4.61%. However, its dividends are well-supported, with a payout ratio of 35.7% from earnings and 23.9% from cash flows, indicating sustainability and reliability over the past decade. The company's P/E ratio at €10.5x is also favorable compared to the broader German market average of €17.7x, reflecting potential value in its current pricing amidst consistent dividend growth.

XTRA:UZU Dividend History as at Jul 2024
XTRA:UZU Dividend History as at Jul 2024

Summing It All Up

Ready For A Different Approach?

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XTRA:MUM XTRA:TTR1 and XTRA:UZU.

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