In This Article:
In the search for reliable dividend stocks in Germany, investors often find themselves navigating through a mix of attractive opportunities and potential pitfalls. A key factor to consider is the sustainability of a company's dividend payouts. High payout ratios, such as those seen with Thyssenkrupp, can be a red flag indicating that dividends might not be supported by the firm’s financial health over the long term.
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.
We're going to check out one of the best picks from our screener tool and one that could be a dividend trap.
Top Pick
EDAG Engineering Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: EDAG Engineering Group AG specializes in designing vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle sectors globally, with a market capitalization of €270 million.
Operations: The company generates revenue through three primary segments: Vehicle Engineering (€488.93 million), Production Solutions (€268.86 million), and Electrics/Electronics (€111.45 million).
Dividend Yield: 5.1%
EDAG Engineering Group AG, with a dividend yield of 5.09%, stands out in the German market. Despite a recent dip in net income from €8.34 million to €7.04 million and EPS from €0.33 to €0.28, its dividends are supported by a sustainable payout ratio of 49.7% and cash payout ratio of 46.4%. However, the dividend track record has been unstable with volatile payments over the past eight years, reflecting some risk for dividend-focused investors.
One To Reconsider
thyssenkrupp
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: thyssenkrupp AG is a diversified industrial and technology company based in Germany, operating globally with a market capitalization of approximately €2.55 billion.
Operations: The company's revenue is derived from various segments, including Steel Europe (€11.43 billion), Marine Systems (€1.80 billion), Materials Services (€12.49 billion), and Automotive Technology (€5.37 billion).