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Three Leading German Dividend Stocks Offering Up To 5.4% Yield

Amidst a backdrop of mixed performances in global markets, with particular stagnation noted in Germany's DAX index, investors may find stability and potential returns in dividend stocks. These stocks can offer regular income streams which might be particularly appealing given the current economic uncertainties and fluctuating market conditions.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.23%

★★★★★★

Edel SE KGaA (XTRA:EDL)

6.44%

★★★★★★

Deutsche Post (XTRA:DHL)

4.81%

★★★★★★

Südzucker (XTRA:SZU)

6.54%

★★★★★☆

MLP (XTRA:MLP)

4.75%

★★★★★☆

Deutsche Telekom (XTRA:DTE)

3.56%

★★★★★☆

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

6.10%

★★★★★☆

SAF-Holland (XTRA:SFQ)

5.03%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

8.10%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.25%

★★★★★☆

Click here to see the full list of 29 stocks from our Top Dividend Stocks screener.

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Let's take a closer look at a couple of our picks from the screened companies.

MLP

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

Overview: MLP SE operates as a financial services provider catering to private, corporate, and institutional clients primarily in Germany, with a market capitalization of approximately €0.69 billion.

Operations: MLP SE generates its revenue by offering financial services to a diverse clientele including private individuals, businesses, and institutions in Germany.

Dividend Yield: 4.8%

MLP SE, despite a volatile dividend history, reaffirmed its dividend at €0.30 per share as of March 2024, maintaining consistency from the previous year. The company's dividends are well-covered with a payout ratio of 62.6% and an even more reassuring cash payout ratio of 10.9%. Recent financials show a positive trend with Q1 2024 earnings rising to €27.76 million from €23.51 million year-over-year and sales increasing across recent quarters. Although trading below estimated fair value by 35.9%, its dividend yield at 4.75% ranks in the top quartile for German markets, highlighting an attractive aspect despite past payment inconsistencies.

XTRA:MLP Dividend History as at May 2024
XTRA:MLP Dividend History as at May 2024

K+S

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

Overview: K+S Aktiengesellschaft operates globally as a supplier of mineral products for various sectors including agricultural and industrial, with a market capitalization of approximately €2.41 billion.

Operations: K+S Aktiengesellschaft generates €3.67 billion in revenue from its Europe+ operating unit.

Dividend Yield: 5.2%

K+S Aktiengesellschaft's recent financial performance shows a significant drop in sales and net income, with Q1 2024 sales at €988 million and net income at €18.6 million, starkly lower than the previous year. Despite these challenges, the company maintains a dividend of €0.70 per share as of May 2024. However, its dividend sustainability is questionable as it is not well-covered by earnings or cash flows, reflecting a broader trend of volatility in its dividend payments over the past decade. Moreover, while K+S completed a substantial share buyback program by December 2023 for €198.6 million, this does not mitigate concerns regarding its long-term dividend reliability amidst fluctuating financial results.

XTRA:SDF Dividend History as at May 2024
XTRA:SDF Dividend History as at May 2024

WashTec

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

Overview: WashTec AG is a company that offers car wash solutions across Germany, Europe, North America, and the Asia Pacific, with a market capitalization of approximately €540.65 million.

Operations: WashTec AG generates revenue primarily from its operations in North America, contributing approximately €98.39 million.

Dividend Yield: 5.4%

WashTec AG offers a dividend yield of 5.45%, ranking it in the top 25% for dividend payers in Germany. However, its dividends are not well-supported by earnings, with a payout ratio of 106.6%. Despite this, cash flows cover the dividends reasonably well at a cash payout ratio of 53.5%. The company's financial performance shows slight growth with net income reaching €27.97 million in 2023 from €26.36 million in the previous year, but recent quarterly results indicate a decline in sales and net income compared to last year's figures.

XTRA:WSU Dividend History as at May 2024
XTRA:WSU Dividend History as at May 2024

Turning Ideas Into Actions

  • Delve into our full catalog of 29 Top Dividend Stocks here.

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Ready To Venture Into Other Investment Styles?

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:MLP XTRA:SDF and XTRA:WSU.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com