As European inflation nears the central bank's target, Germany's DAX index has reached new heights, reflecting a positive sentiment in the market. With this backdrop, it's an opportune moment to explore dividend stocks that can offer stability and income potential. In times of economic optimism and market peaks, dividend stocks are particularly appealing due to their ability to provide consistent returns through regular payouts.
Top 10 Dividend Stocks In Germany
Name
Dividend Yield
Dividend Rating
Allianz (XTRA:ALV)
4.91%
★★★★★★
Deutsche Post (XTRA:DHL)
4.72%
★★★★★★
MLP (XTRA:MLP)
5.17%
★★★★★☆
OVB Holding (XTRA:O4B)
4.69%
★★★★★☆
SAF-Holland (XTRA:SFQ)
4.90%
★★★★★☆
Mercedes-Benz Group (XTRA:MBG)
8.50%
★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)
Overview: DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) develops, manufactures, and distributes flatbed displays, monitors, electronic subassemblies, and information systems both in Germany and internationally with a market cap of €91.68 million.
Operations: DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) generates revenue from two main segments: €96.65 million from Systems and €161.99 million from Displays.
Dividend Yield: 7.7%
DATA MODUL Produktion und Vertrieb von elektronischen Systemen has a mixed dividend profile. While its dividends have been volatile and unreliable over the past decade, they are well-covered by both earnings (64% payout ratio) and cash flows (19.5% cash payout ratio). Despite a recent decline in net income and sales, the company's dividend yield of 7.69% is among the top 25% in Germany, supported by a low Price-to-Earnings ratio of 8.3x compared to the market's 17x.
Overview: MVV Energie AG, with a market cap of €2.00 billion, operates in Germany providing electricity, heat, gas, water, and waste treatment and disposal services through its subsidiaries.
Operations: MVV Energie AG's revenue segments include electricity, heat, gas, water, and waste treatment and disposal products.
Dividend Yield: 3.8%
MVV Energie offers a stable and reliable dividend, with payments consistently increasing over the past decade. The dividends are well-covered by earnings (47.1% payout ratio) and cash flows (59.9% cash payout ratio), despite recent financial challenges such as declining net income and profit margins. Trading at 12.9% below its estimated fair value, MVV Energie's current yield of 3.78% is lower than the top 25% of German dividend payers but remains attractive for long-term investors seeking stability.
Overview: Schloss Wachenheim AG, with a market cap of €121.18 million, produces and distributes sparkling and semi-sparkling wine products in Europe and internationally.
Operations: Schloss Wachenheim AG generates €441.16 million in revenue from its alcoholic beverages segment.
Dividend Yield: 3.9%
Schloss Wachenheim's dividend yield of 3.92% is lower than the top 25% of German dividend payers but has been stable and growing over the past decade. However, its dividends are not well-covered by free cash flows, with a high cash payout ratio of 113.1%. Despite this, the payout ratio from earnings stands at a reasonable 54.2%. The stock trades at good value compared to peers and industry, currently priced 16% below its estimated fair value.
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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:DAM XTRA:MVV1 and XTRA:SWA.
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