Yahoo Finance Three Solid German Dividend Stocks Offering Up To 5.8% Yield
As global markets navigate through a period of uncertainty, Germany's DAX index has shown resilience with a modest rise of 0.40%, despite broader European market fluctuations and economic challenges. In this context, German dividend stocks emerge as potentially attractive options for investors seeking steady income streams in a landscape marked by heightened political and economic volatility. A good dividend stock typically combines robust fundamentals with a history of stable or growing dividends, making it an appealing choice in the current environment where reliability is key.
Top 10 Dividend Stocks In Germany
Name | Dividend Yield | Dividend Rating |
Allianz (XTRA:ALV) | 5.26% | ★★★★★★ |
Deutsche Post (XTRA:DHL) | 4.80% | ★★★★★★ |
Brenntag (XTRA:BNR) | 3.33% | ★★★★★☆ |
Südzucker (XTRA:SZU) | 6.53% | ★★★★★☆ |
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) | 6.62% | ★★★★★☆ |
MLP (XTRA:MLP) | 5.13% | ★★★★★☆ |
INDUS Holding (XTRA:INH) | 5.00% | ★★★★★☆ |
Deutsche Telekom (XTRA:DTE) | 3.25% | ★★★★★☆ |
Mercedes-Benz Group (XTRA:MBG) | 8.18% | ★★★★★☆ |
Uzin Utz (XTRA:UZU) | 3.17% | ★★★★★☆ |
Click here to see the full list of 32 stocks from our Top Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
MVV Energie
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: MVV Energie AG operates primarily in Germany, offering services including electricity, heat, gas, water, and waste treatment and disposal with a market capitalization of €2.04 billion.
Operations: MVV Energie AG generates revenue through its Customer Solutions segment (€7.54 billion), Generation and Infrastructure (€1.75 billion), and New Energies (€0.96 billion).
Dividend Yield: 3.7%
MVV Energie AG's recent financial performance shows a decline, with net income dropping significantly to €69.37 million in Q2 2024 from €154.63 million year-over-year and earnings per share also falling. Despite this, the company maintains a low payout ratio of 30.5%, suggesting that its dividend payments are well-covered by earnings. However, dividends are not supported by free cash flow or cash flows overall, indicating potential sustainability issues. Additionally, MVV's dividend yield of 3.71% is lower than the top quartile of German dividend stocks at 4.69%.
PWO
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: PWO AG specializes in producing lightweight construction components from steel and aluminum sheet for the mobility industry, operating across Germany, Czechia, Canada, Mexico, Serbia, and China with a market capitalization of €93.75 million.
Operations: PWO AG generates €562.18 million from its Auto Parts & Accessories segment.
Dividend Yield: 5.8%
PWO offers a dividend yield of 5.83%, ranking it in the top 25% of German dividend stocks, with a relatively low payout ratio of 33.3% and cash payout ratio of 23%, indicating that dividends are well-covered by both earnings and cash flows. However, the company's dividend history over the past decade has been marked by volatility and inconsistency, with payments showing significant fluctuations. Additionally, while trading at a substantial discount to its estimated fair value, PWO carries a high debt burden which could impact future financial flexibility.
Click to explore a detailed breakdown of our findings in PWO's dividend report.
The valuation report we've compiled suggests that PWO's current price could be quite moderate.
Schloss Wachenheim
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Schloss Wachenheim AG is a producer and distributor of sparkling and semi-sparkling wines, operating both in Europe and internationally, with a market capitalization of approximately €121.18 million.
Operations: Schloss Wachenheim AG generates €441.16 million in revenue from its alcoholic beverages segment.
Dividend Yield: 3.9%
Schloss Wachenheim AG (SWA) maintains a stable dividend history over the past decade, with dividends increasing despite a low yield of 3.92% compared to the German market's top quartile. While earnings are projected to grow by 16.23% annually, SWA's dividend sustainability is questionable due to a high cash payout ratio of 113.1%, indicating dividends are not well-covered by cash flows. Recent financials show declining profitability with a net loss in the latest quarter, complicating its dividend outlook.
Where To Now?
Take a closer look at our Top Dividend Stocks list of 32 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 XTRA:MVV1 XTRA:PWO and XTRA:SWA.
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