As the German market navigates through a period of cautious investor sentiment due to escalating Middle East tensions and a potential rate cut by the European Central Bank, dividend stocks continue to attract attention for their potential to provide steady income amidst volatility. In such an environment, selecting stocks with strong fundamentals and consistent dividend payouts can be an effective strategy for investors seeking stability in their portfolios.
Top 10 Dividend Stocks In Germany
Name
Dividend Yield
Dividend Rating
Edel SE KGaA (XTRA:EDL)
6.73%
★★★★★★
Deutsche Post (XTRA:DHL)
4.92%
★★★★★★
SAF-Holland (XTRA:SFQ)
5.61%
★★★★★☆
OVB Holding (XTRA:O4B)
4.64%
★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)
Overview: FRoSTA Aktiengesellschaft, along with its subsidiaries, develops, produces, and markets frozen food products across Germany, Poland, Austria, Italy, and Eastern Europe with a market cap of €415.57 million.
Operations: FRoSTA Aktiengesellschaft generates revenue through the development, production, and marketing of frozen food products in multiple European countries including Germany, Poland, Austria, Italy, and Eastern Europe.
Dividend Yield: 3.3%
FRoSTA's dividends are well-supported by both earnings and cash flows, with a payout ratio of 40% and a cash payout ratio of 19.3%. The company has demonstrated consistent dividend growth over the past decade, maintaining stability without significant volatility. Though its dividend yield of 3.31% is lower than the top quartile in Germany, FRoSTA trades significantly below its estimated fair value, potentially offering value to investors seeking reliable income streams.
Overview: Bertrandt Aktiengesellschaft offers engineering services and has a market cap of €202.11 million.
Operations: Bertrandt Aktiengesellschaft generates revenue from three primary segments: Digital Engineering (€640.06 million), Physical Engineering (€253.89 million), and Electrical Systems/Electronics (€409.76 million).
Dividend Yield: 6%
Bertrandt's dividend yield of 6% ranks in the top 25% of German payers, though its track record has been volatile over the past decade. The dividends are covered by earnings and cash flows, with payout ratios of 71.1% and 26.8%, respectively. Despite recent inclusion in the S&P Global BMI Index, Bertrandt reported a net loss for Q3 2024 amid declining profit margins, raising concerns about future dividend stability despite trading below estimated fair value.
Overview: EDAG Engineering Group AG specializes in the development of vehicles, derivatives, modules, and production facilities for the global automotive and commercial vehicle industries, with a market cap of €224.50 million.
Operations: EDAG Engineering Group AG generates its revenue through three primary segments: Vehicle Engineering (€485.66 million), Production Solutions (€276.56 million), and Electrics/Electronics (€110.02 million).
Dividend Yield: 6.1%
EDAG Engineering Group's dividend yield of 6.12% is among the top 25% in Germany, but its track record over eight years has been unstable with declining payments. While dividends are well-covered by earnings (54.1% payout ratio) and cash flows (28.5%), high debt levels pose risks to sustainability. Recent earnings showed a decline, with net income dropping to €3.46 million for Q2 2024 from €5.63 million a year earlier, potentially impacting future payouts despite trading below analyst targets.
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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 DB:NLM XTRA:BDT and XTRA:ED4.
