As global markets face turbulence, Germany's DAX index has seen a significant decline, reflecting broader economic concerns. Despite this volatility, dividend stocks remain an attractive option for investors seeking steady income. In the current market environment, a good dividend stock is characterized by its ability to provide consistent payouts and demonstrate financial resilience.
Overview: Allianz SE, with a market cap of €97.42 billion, operates globally through its subsidiaries offering property-casualty insurance, life/health insurance, and asset management products and services.
Operations: Allianz SE generates revenue from three primary segments: €73.12 billion from property-casualty insurance, €44.96 billion from life/health insurance, and €3.23 billion from asset management products and services worldwide.
Dividend Yield: 5.5%
Allianz SE offers a high and reliable dividend yield of 5.49%, placing it in the top 25% of dividend payers in Germany. The dividends have been stable and growing over the past decade, supported by a reasonable payout ratio (65.1%) and strong cash flow coverage (24%). Recent M&A activities, including potential acquisitions in Queensland and Singapore, highlight Allianz's strategic growth initiatives. Additionally, Allianz completed a €500 million share buyback program this year.
Overview: Edel SE & Co. KGaA, with a market cap of €92.76 million, operates as an independent music company in Europe through its subsidiaries.
Operations: Edel SE & Co. KGaA generates revenue through its various subsidiaries, primarily focusing on music production, distribution, and related services across Europe.
Dividend Yield: 6.9%
Edel SE & Co. KGaA provides a high and reliable dividend yield of 6.88%, placing it in the top 25% of German dividend payers. The dividends have been stable and growing over the past decade, supported by a reasonable payout ratio (52.7%) and solid cash flow coverage (71%). Despite high debt levels, recent earnings results showed net income growth to €5.82 million for H1 2024, maintaining steady basic earnings per share at €0.27 year-on-year.
Overview: KSB SE & Co. KGaA, with a market cap of €1.11 billion, manufactures and supplies pumps, valves, and related services globally through its subsidiaries.
Operations: KSB SE & Co. KGaA generates revenue through the global manufacturing and supply of pumps, valves, and associated services.
Dividend Yield: 4%
KSB SE KGaA trades at 78.3% below its estimated fair value, with a dividend payout ratio of 30.7% and a cash payout ratio of 24.2%, indicating strong coverage by earnings and cash flows. However, its dividend track record has been volatile over the past decade despite recent growth in payments. The current yield is lower than the top quartile of German dividend payers. Recent H1 2024 results show sales increased to €1.44 billion, while net income slightly decreased to €58.2 million from €62 million last year.
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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:EDL and XTRA:KSB.
