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3 German Dividend Stocks Offering Up To 7.1% Yield

Amidst a backdrop of fluctuating global markets and heightened geopolitical tensions, the German market has shown resilience with key indices like the DAX reflecting cautious investor sentiment. In such an environment, dividend stocks can be appealing for those seeking potential income stability and long-term value in their investment portfolios.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Edel SE KGaA (XTRA:EDL)

6.25%

★★★★★★

Talanx (XTRA:TLX)

3.33%

★★★★★☆

DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)

5.62%

★★★★★☆

MLP (XTRA:MLP)

5.36%

★★★★★☆

Deutsche Post (XTRA:DHL)

4.74%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

7.16%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.21%

★★★★★☆

Bayerische Motoren Werke (XTRA:BMW)

5.64%

★★★★★☆

K+S (XTRA:SDF)

5.04%

★★★★★☆

ProCredit Holding (XTRA:PCZ)

7.19%

★★★★☆☆

Click here to see the full list of 25 stocks from our Top Dividend Stocks screener.

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Let's uncover some gems from our specialized screener.

Uzin Utz

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

Overview: Uzin Utz SE, with a market capitalization of €251.21 million, is engaged in developing, manufacturing, and selling construction chemical system products across Germany, the United States, the Netherlands, and other international markets.

Operations: Uzin Utz SE generates revenue through various segments, including €210.21 million from Germany - Laying Systems, €82.87 million from Netherlands - Laying Systems, €83.83 million from Western Europe, €73.33 million from the USA, €36.31 million from Netherlands - Wholesale, €35.16 million from Germany - Surface Care and Refinement, and €32.53 million from Germany - Machinery and Tools; Southern/Eastern Europe contributes an additional €25.98 million.

Dividend Yield: 3.2%

Uzin Utz offers a modest dividend yield of 3.21%, lower than the top German dividend payers. Despite this, its dividends are well-supported, with a payout ratio of 35.7% and a cash payout ratio of 23.9%, indicating strong coverage by both earnings and cash flows. The company has demonstrated reliability in its dividend payments over the past decade, showing consistent growth and stability in dividends per share. However, recent financials reveal a slight decline in net income and sales for the year ended December 31, 2023, which might raise concerns about future profitability and sustained dividend growth.

XTRA:UZU Dividend History as at Apr 2024
XTRA:UZU Dividend History as at Apr 2024

ProCredit Holding

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

Overview: ProCredit Holding AG operates as a commercial bank offering services primarily to small and medium enterprises and private customers across Europe, South America, and Germany, with a market capitalization of approximately €524.20 million.

Operations: ProCredit Holding AG generates its revenue primarily through banking services, with a reported segment total of €399.40 million.

Dividend Yield: 7.2%

ProCredit Holding, trading at 60.3% below estimated fair value, offers a compelling dividend yield of 7.19%, ranking in the top 25% in the German market. Despite a high bad loans ratio of 2.7%, its dividends are well-covered with a payout ratio of 33.2%. Earnings have surged by 587.2% over the past year and are expected to grow by 10.05% annually, supporting future dividends despite an unstable track record and volatility in payments over its seven-year dividend history.

XTRA:PCZ Dividend History as at Apr 2024
XTRA:PCZ Dividend History as at Apr 2024

Bayerische Motoren Werke

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

Overview: Bayerische Motoren Werke Aktiengesellschaft (BMW) operates globally, focusing on the development, manufacture, and sale of automobiles and motorcycles, along with spare parts and accessories, with a market capitalization of approximately €67.03 billion.

Operations: Bayerische Motoren Werke Aktiengesellschaft (BMW) generates revenue primarily through its Automotive segment, which brought in €132.28 billion, and its Financial Services segment, which contributed €36.23 billion, along with a smaller contribution of €3.21 billion from Motorcycles.

Dividend Yield: 5.6%

BMW's dividend yield of 5.64% positions it in the top quartile of German dividend stocks, despite a history of fluctuating payouts over the past decade. The company maintains a low earnings payout ratio of 33.9% and a cash payout ratio of 57.1%, ensuring dividends are well-supported by both profits and cash flow. However, BMW faces challenges with declining profit margins, from 12.6% to 7.3%, and an expected average annual earnings decline of 0.7% over the next three years, potentially pressuring future dividends.

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

Key Takeaways

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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:UZUXTRA:PCZ and XTRA:BMW.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com