Top German (DAX) Dividend Stocks

Top German (DAX) Dividend Stocks

UPDATED Jun 28, 2022

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.

27 companies meet this criteria in the German market

Deutsche Beteiligungs AG is a private equity firm specializing in direct and fund of fund investments.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: DBAN's dividend (6.08%) is in the top 25% of dividend payers in the German market (4.5%)

  • Notable Dividend

  • Stable Dividend

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Rewards

  • Trading at 63.2% below our estimate of its fair value

  • Earnings are forecast to grow 63.47% per year

Risks

No risks detected for DBAN from our risks checks.

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CEWE Stiftung & Co. KGaA operates as a photo service and online printing provider in Germany and internationally.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: CWC's dividend (2.87%) is low compared to the top 25% of dividend payers in the German market (4.5%).

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Rewards

  • Trading at 54.2% below our estimate of its fair value

  • Earnings are forecast to grow 9.61% per year

Risks

No risks detected for CWC from our risks checks.

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KPS AG provides management consulting services in the areas of business transformation and process optimization in retail and consumer goods sectors in Germany and Europe.

Dividend Criteria

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • High Dividend: KSC's dividend (4.56%) is in the top 25% of dividend payers in the German market (4.5%)

  • Notable Dividend

  • Stable Dividend

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Rewards

  • Trading at 49.4% below our estimate of its fair value

  • Earnings are forecast to grow 19.9% per year

Risks

No risks detected for KSC from our risks checks.

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Fresenius Medical Care AG & Co. KGaA provides dialysis care and related dialysis care services in Germany, North America, and internationally.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: FME's dividend (2.82%) is low compared to the top 25% of dividend payers in the German market (4.5%).

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Rewards

  • Trading at 63.1% below our estimate of its fair value

  • Earnings are forecast to grow 18.58% per year

Risks

  • Has a high level of debt

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Hannover Rück SE, together with its subsidiaries, provides reinsurance products and services worldwide.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: HNR1's dividend (3.27%) is low compared to the top 25% of dividend payers in the German market (4.5%).

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Rewards

  • Trading at 64.2% below our estimate of its fair value

  • Earnings are forecast to grow 11.59% per year

  • Earnings grew by 33.9% over the past year

Risks

No risks detected for HNR1 from our risks checks.

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Fresenius SE & Co. KGaA, a health care company, provides products and services for dialysis, hospitals, and outpatient medical care.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: FRE's dividend (3.17%) is low compared to the top 25% of dividend payers in the German market (4.5%).

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Rewards

  • Trading at 85.7% below our estimate of its fair value

  • Earnings are forecast to grow 12.12% per year

Risks

  • Has a high level of debt

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USU Software AG, together with its subsidiaries, provides information technology (IT) and knowledge management software solutions for knowledge-based service management in Germany and internationally.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: OSP2's dividend (2.69%) is low compared to the top 25% of dividend payers in the German market (4.5%).

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Rewards

  • Trading at 46.1% below our estimate of its fair value

  • Earnings are forecast to grow 25.02% per year

  • Earnings have grown 19% per year over the past 5 years

Risks

No risks detected for OSP2 from our risks checks.

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SAP SE, together with its subsidiaries, operates as an enterprise application software company worldwide.

Dividend Criteria

  • Stable Dividend

  • Earnings Coverage

  • Growing Dividend

  • Future Dividend Coverage

  • Notable Dividend

  • High Dividend: SAP's dividend (2.14%) is low compared to the top 25% of dividend payers in the German market (4.5%).

See Full Stock Report

Rewards

  • Trading at 68.3% below our estimate of its fair value

  • Earnings are forecast to grow 19.02% per year

Risks

  • Large one-off items impacting financial results

View all Risks and Rewards
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