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3 Top German Dividend Stocks With Yields From 5% to 9.9%

Amid a backdrop of moderate gains in the German DAX and broader European indices, investors are keenly observing market dynamics as political and economic developments unfold. In such an environment, dividend stocks remain a point of interest for those seeking yields in a landscape marked by fluctuating manufacturing outputs and cautious central bank policies.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.31%

★★★★★★

Deutsche Post (XTRA:DHL)

4.68%

★★★★★★

OVB Holding (XTRA:O4B)

4.66%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

8.39%

★★★★★☆

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

6.80%

★★★★★☆

MLP (XTRA:MLP)

5.24%

★★★★★☆

SAF-Holland (XTRA:SFQ)

4.78%

★★★★★☆

Deutsche Telekom (XTRA:DTE)

3.26%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.20%

★★★★★☆

FRoSTA (DB:NLM)

3.12%

★★★★★☆

Click here to see the full list of 32 stocks from our Top Dividend Stocks screener.

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We're going to check out a few of the best picks from our screener tool.

Bayerische Motoren Werke

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

Overview: Bayerische Motoren Werke Aktiengesellschaft (BMW) operates globally in the development, manufacturing, and sale of automobiles and motorcycles, along with spare parts and accessories, boasting a market capitalization of approximately €55.16 billion.

Operations: Bayerische Motoren Werke Aktiengesellschaft (BMW) generates revenue primarily through its Automotive and Motorcycles segments, with €131.95 billion and €3.15 billion respectively, supplemented by its Financial Services segment which contributes €36.93 billion.

Dividend Yield: 6.8%

Bayerische Motoren Werke offers a dividend yield of 6.84%, higher than the German market average, but its sustainability is questionable due to coverage issues. Dividend payments have shown volatility over the past decade and are currently not well supported by earnings or free cash flows, with a high cash payout ratio of 168.2%. Despite trading below estimated fair value by 20.8%, financial analysts anticipate potential stock price growth of 29.2%. Recent strategic moves include a significant investment in lithium supply for electric vehicles, aligning with industry trends towards electrification and digitalization.

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

CR Energy

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

Overview: CR Energy AG is an investment company focused on technology firms in Germany, with a market capitalization of approximately €0.15 billion.

Operations: CR Energy AG generates €68.57 million from its real estate rental segment.

Dividend Yield: 10%

CR Energy AG's recent financial performance shows a decline, with revenue dropping to €68.64 million and net income at €65.78 million for 2023. Despite this, the company maintains a low payout ratio of 22.4% and a higher cash payout ratio of 62.6%, ensuring dividends are well-covered by earnings and cash flows. CR Energy has been paying increasing dividends for six years, offering a yield of 9.96%, placing it in the top quartile of German dividend stocks despite its short dividend history and some shareholder dilution over the past year.

XTRA:CRZK Dividend History as at Jul 2024
XTRA:CRZK Dividend History as at Jul 2024

Deutsche Lufthansa

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

Overview: Deutsche Lufthansa AG is a global aviation company with a market capitalization of approximately €7.14 billion.

Operations: Deutsche Lufthansa AG generates revenue primarily through its Passenger Airlines segment at €28.69 billion, followed by Maintenance, Repair and Overhaul Services at €6.78 billion, Logistics at €2.85 billion, and Additional Businesses and Group Functions contributing €0.97 billion.

Dividend Yield: 5%

Deutsche Lufthansa AG has a mixed track record with dividends, characterized by volatility and inconsistencies over the past decade. Despite this, its current dividend yield of 5.03% ranks in the top 25% of German dividend stocks. The dividends are reasonably secure, supported by a low payout ratio of 22.3% and a cash payout ratio of 50.3%. However, recent financial challenges include a net loss of €734 million for Q1 2024, underscoring potential concerns about sustainability amidst operational pressures.

XTRA:LHA Dividend History as at Jul 2024
XTRA:LHA Dividend History as at Jul 2024

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Curious About Other Options?

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:BMWXTRA:CRZK XTRA:LHA and

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