Yahoo Finance Top Three German Dividend Stocks For July 2024
As of June 2024, Germany's DAX index has shown resilience with a modest increase of 0.40%, despite broader European market fluctuations and rising unemployment within the country. This backdrop sets a nuanced stage for investors considering German dividend stocks, where stability and consistent yield are particularly appealing in uncertain economic times. A good dividend stock typically offers not just yield but also stability and potential for long-term growth, qualities that are especially valuable in the current economic environment marked by political uncertainties and fluctuating markets across Europe.
Top 10 Dividend Stocks In Germany
Name | Dividend Yield | Dividend Rating |
Allianz (XTRA:ALV) | 5.31% | ★★★★★★ |
Deutsche Post (XTRA:DHL) | 4.67% | ★★★★★★ |
Südzucker (XTRA:SZU) | 6.41% | ★★★★★☆ |
OVB Holding (XTRA:O4B) | 4.79% | ★★★★★☆ |
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) | 6.67% | ★★★★★☆ |
MLP (XTRA:MLP) | 5.14% | ★★★★★☆ |
INDUS Holding (XTRA:INH) | 4.98% | ★★★★★☆ |
Deutsche Telekom (XTRA:DTE) | 3.24% | ★★★★★☆ |
Mercedes-Benz Group (XTRA:MBG) | 8.12% | ★★★★★☆ |
Uzin Utz (XTRA:UZU) | 3.14% | ★★★★★☆ |
Click here to see the full list of 31 stocks from our Top Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Allianz
Simply Wall St Dividend Rating: ★★★★★★
Overview: Allianz SE operates globally, offering property-casualty insurance, life/health insurance, and asset management services with a market capitalization of approximately €100.94 billion.
Operations: Allianz SE generates revenue primarily through three segments: property-casualty insurance (€73.12 billion), life/health insurance (€44.96 billion), and asset management (€3.23 billion).
Dividend Yield: 5.3%
Allianz SE, with a dividend yield of 5.33%, stands out in the German market. The company's dividends are well-supported by both earnings and cash flows, with payout ratios of 65.1% and 24% respectively, indicating sustainability. Recent strategic moves include a potential partnership with Income Insurance Limited, enhancing its market position. Additionally, Allianz has shown commitment to shareholder returns through a recent share buyback of €500 million and has maintained stable earnings growth forecasts for 2024.
Dive into the specifics of Allianz here with our thorough dividend report.
Our valuation report here indicates Allianz may be undervalued.
KSB SE KGaA
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: KSB SE & Co. KGaA operates globally, manufacturing and supplying pumps, valves, and related services with a market capitalization of approximately €1.14 billion.
Operations: KSB SE & Co. KGaA generates revenue through its three primary segments: Pumps (€1.51 billion), Valves (€361.44 million), and KSB Supremeserv (€943.90 million).
Dividend Yield: 3.9%
KSB SE KGaA offers a dividend yield of 3.85%, which is below the top quartile in the German market. Despite this, its dividends are well-covered with a payout ratio of 29.9% and a cash payout ratio of 26.2%, ensuring sustainability from both earnings and cash flow perspectives. However, KSB's dividend history shows volatility over the past decade, with significant annual drops exceeding 20%. The company’s recent earnings growth was robust at 46.9%, but dividends have not consistently grown year-over-year.
Mercedes-Benz Group
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Mercedes-Benz Group AG is a global automotive company based in Germany, with a market capitalization of approximately €63.83 billion.
Operations: Mercedes-Benz Group AG generates revenue primarily through three segments: Mercedes-Benz Cars (€110.66 billion), Mercedes-Benz Vans (€20.57 billion), and Mercedes-Benz Mobility (€26.93 billion).
Dividend Yield: 8.1%
Mercedes-Benz Group AG's recent dividend increase to €5.30 per share reflects a steady commitment to shareholder returns, despite a slight dip in net income and sales in Q1 2024 compared to the previous year. The company's dividends are supported by a payout ratio of 41.9% and a cash payout ratio of 68.6%, indicating reasonable coverage by earnings and cash flows respectively. However, the dividend track record has been unstable over the past decade, suggesting potential volatility for investors relying on consistent dividend growth.
Navigate through the intricacies of Mercedes-Benz Group with our comprehensive dividend report here.
Where To Now?
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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:ALV XTRA:KSB and XTRA:MBG.
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