Top German Dividend Stocks To Watch In August 2024

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As global markets navigate a period of volatility, the German DAX has shown resilience, posting modest gains amid broader economic concerns. With industrial output on the rise and a shrinking trade surplus reflecting mixed signals, investors are keenly watching dividend stocks for stable returns. In such an environment, reliable dividend stocks can offer both income and potential growth, making them an attractive option for those seeking stability amidst market fluctuations.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.39%

★★★★★★

Deutsche Post (XTRA:DHL)

5.13%

★★★★★★

Talanx (XTRA:TLX)

3.53%

★★★★★☆

Brenntag (XTRA:BNR)

3.29%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

9.22%

★★★★★☆

Südzucker (XTRA:SZU)

7.50%

★★★★★☆

INDUS Holding (XTRA:INH)

5.85%

★★★★★☆

MLP (XTRA:MLP)

5.20%

★★★★★☆

FRoSTA (DB:NLM)

3.36%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.31%

★★★★★☆

Click here to see the full list of 29 stocks from our Top German Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Bayerische Motoren Werke

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles, motorcycles, and related spare parts and accessories globally, with a market cap of approximately €49.27 billion.

Operations: Bayerische Motoren Werke Aktiengesellschaft generates revenue from its Automotive segment (€132.39 billion), Motorcycles segment (€3.15 billion), and Financial Services segment (€37.87 billion).

Dividend Yield: 7.6%

BMW's dividend yield of 7.6% places it in the top 25% of German dividend payers, but its sustainability is questionable as dividends are not covered by free cash flow and have been volatile over the past decade. Despite a reasonable payout ratio of 36%, recent financial results show declining sales and net income, raising concerns about future stability. However, BMW trades at good value compared to peers and industry standards.

XTRA:BMW Dividend History as at Aug 2024
XTRA:BMW Dividend History as at Aug 2024

MLP

Simply Wall St Dividend Rating: ★★★★★☆

Overview: MLP SE, with a market cap of €627.50 million, provides financial services to private, corporate, and institutional clients in Germany through its subsidiaries.

Operations: MLP SE generates revenue through various segments, including Financial Consulting (€426.19 million), FERI (€221.45 million), Banking (€195.50 million), DOMCURA (€131.71 million), Real Estate (€51.96 million), and Industrial Broker (€35.97 million).