Yahoo Finance Exploring FRoSTA And Two More Leading Dividend Stocks In Germany
As the German market experiences a robust uptick, with the DAX index climbing 4.28% amid optimistic corporate earnings and potential interest rate cuts by major central banks, investors are keenly observing opportunities within this positive economic landscape. In such a climate, dividend stocks like FRoSTA become particularly appealing for those looking to combine steady income with potential capital appreciation in a strengthening market environment.
Top 10 Dividend Stocks In Germany
Name | Dividend Yield | Dividend Rating |
Edel SE KGaA (XTRA:EDL) | 6.38% | ★★★★★★ |
Deutsche Post (XTRA:DHL) | 4.67% | ★★★★★★ |
Talanx (XTRA:TLX) | 3.40% | ★★★★★☆ |
FRoSTA (DB:NLM) | 3.03% | ★★★★★☆ |
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) | 6.06% | ★★★★★☆ |
MLP (XTRA:MLP) | 5.30% | ★★★★★☆ |
SAF-Holland (XTRA:SFQ) | 4.88% | ★★★★★☆ |
Mercedes-Benz Group (XTRA:MBG) | 7.75% | ★★★★★☆ |
Uzin Utz (XTRA:UZU) | 3.17% | ★★★★★☆ |
Bijou Brigitte modische Accessoires (XTRA:BIJ) | 7.23% | ★★★★☆☆ |
Click here to see the full list of 30 stocks from our Top Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
FRoSTA
Simply Wall St Dividend Rating: ★★★★★☆
Overview: FRoSTA Aktiengesellschaft operates in the frozen food sector, developing, producing, and marketing products across Germany, Italy, Poland, Austria, and Eastern Europe with a market capitalization of approximately €446.23 million.
Operations: FRoSTA Aktiengesellschaft generates its revenue by developing, producing, and distributing frozen food across multiple European countries including Germany, Italy, Poland, Austria, and other Eastern European nations.
Dividend Yield: 3%
FRoSTA Aktiengesellschaft offers a modest dividend yield of 3.03%, which is lower than the top quartile of German dividend stocks at 4.6%. However, its dividends are well-supported, with a payout ratio of 40% and a cash payout ratio of 13.9%, indicating sustainability from both earnings and cash flow perspectives. Over the past decade, FRoSTA has consistently paid and gradually increased its dividends, demonstrating reliability in its distributions to shareholders. The company's price-to-earnings ratio stands at 13.2x, below the German market average of 17.7x, suggesting potential value for investors despite a less competitive yield.
Get an in-depth perspective on FRoSTA's performance by reading our dividend report here.
Our valuation report unveils the possibility FRoSTA's shares may be trading at a premium.
ProCredit Holding
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: ProCredit Holding AG operates as a commercial bank specializing in services for small and medium enterprises and private customers across Europe, South America, and Germany, with a market capitalization of approximately €571.32 million.
Operations: ProCredit Holding AG generates its revenue primarily through banking services, totaling €399.40 million.
Dividend Yield: 6.6%
ProCredit Holding AG demonstrated a significant improvement in financial performance with a net interest income of €337.22 million and net income of €113.37 million for 2023, up from €264.63 million and €16.5 million respectively in the previous year. Despite its relatively high bad loans ratio at 2.7%, the company trades at 56% below estimated fair value, suggesting potential undervaluation compared to peers. Dividend sustainability is supported by a low payout ratio of 33.2%, although dividend history over the past seven years has shown volatility, indicating some risk for dividend-focused investors.
Sixt
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Sixt SE operates globally, offering mobility services to both private and business customers through a network of corporate and franchise stations, with a market capitalization of approximately €3.44 billion.
Operations: Sixt SE generates its revenue primarily from operations in Germany (€1.21 billion), Europe excluding Germany (€1.49 billion), and North America (€1.14 billion).
Dividend Yield: 4.9%
Sixt SE's recent performance presents challenges for dividend-focused investors, with a reported net loss of €23.12 million in Q1 2024, contrasting sharply with a net income of €22.17 million in the same period last year. The company's dividends have been volatile over the past decade and are currently not well supported by free cash flows or earnings, despite a reasonable payout ratio of 54.6%. This instability is compounded by debts that are poorly covered by operating cash flow, raising concerns about the sustainability of future dividends.
Seize The Opportunity
Take a closer look at our Top Dividend Stocks list of 30 companies by clicking here.
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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 DB:NLM XTRA:PCZ and XTRA:SIX2.
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