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Top German (DAX) Dividend Stocks
UPDATED Jun 04, 2023
What are the best German (DAX) Dividend Stocks?
According to our Simply Wall St analysis these are the best German dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
14 companies meet this criteria in the German market
All for One Group SE, together with its subsidiaries, provides business software solutions for SAP, Microsoft, and IBM in Germany, Switzerland, Austria, Poland, Luxembourg, Italy, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: A1OS's dividend (3.54%) is low compared to the top 25% of dividend payers in the German market (4.73%).
Rewards
Trading at 60.3% below our estimate of its fair value
Earnings are forecast to grow 29.46% per year
Risks
No risks detected for A1OS from our risks checks.
Fresenius Medical Care AG & Co. KGaA provides dialysis and related services for individuals with renal diseases in Germany, North America, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: FME's dividend (2.74%) is low compared to the top 25% of dividend payers in the German market (4.73%).
Rewards
Trading at 47.9% below our estimate of its fair value
Earnings are forecast to grow 20.9% per year
Risks
Profit margins (3.1%) are lower than last year (4.9%)
Has a high level of debt
Schloss Wachenheim AG produces and distributes sparkling and semi-sparkling wine products in Europe and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: SWA's dividend (3.61%) is low compared to the top 25% of dividend payers in the German market (4.73%).
Rewards
Trading at 74.9% below our estimate of its fair value
Earnings are forecast to grow 26.16% per year
Risks
No risks detected for SWA from our risks checks.
freenet AG provides telecommunications, radio and multimedia, mobile communications, mobile Internet, and digital lifestyle services in Germany.
Dividend Criteria
Growing Dividend
Future Dividend Coverage
High Dividend: FNTN's dividend (7.3%) is in the top 25% of dividend payers in the German market (4.73%)
Notable Dividend
Earnings Coverage
Stable Dividend
Rewards
Trading at 51.5% below our estimate of its fair value
Earnings are forecast to grow 32.08% per year
Risks
Profit margins (2.9%) are lower than last year (6.6%)
CENIT Aktiengesellschaft operates as an IT consultancy and software company that serves manufacturing and financial service industries.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: CSH's dividend (3.73%) is low compared to the top 25% of dividend payers in the German market (4.73%).
Stable Dividend
Rewards
Trading at 29.7% below our estimate of its fair value
Earnings are forecast to grow 17.62% per year
Earnings grew by 60% over the past year
Risks
No risks detected for CSH from our risks checks.
OHB SE operates as a space and technology company in Germany, rest of Europe, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: OHB's dividend (1.9%) is low compared to the top 25% of dividend payers in the German market (4.73%).
Stable Dividend
Rewards
Trading at 55.7% below our estimate of its fair value
Earnings are forecast to grow 18.36% per year
Earnings grew by 32.5% over the past year
Risks
Debt is not well covered by operating cash flow
Large one-off items impacting financial results
Cliq Digital AG sells subscription-based streaming services that bundle movies and series, music, audiobooks, sports, and games to consumers worldwide.
Dividend Criteria
Earnings Coverage
Future Dividend Coverage
High Dividend: CLIQ's dividend (7.25%) is in the top 25% of dividend payers in the German market (4.73%)
Notable Dividend
Growing Dividend
Stable Dividend
Rewards
Trading at 46.1% below our estimate of its fair value
Earnings are forecast to grow 15.93% per year
Earnings grew by 54.5% over the past year
Risks
High level of non-cash earnings
New Work SE operates professional networking platforms in Germany and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: NWO's dividend (5.36%) is in the top 25% of dividend payers in the German market (4.73%)
Notable Dividend
Stable Dividend
Rewards
Trading at 38.2% below our estimate of its fair value
Earnings are forecast to grow 10.56% per year
Risks
Large one-off items impacting financial results
Volatile share price over the past 3 months