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Top German (DAX) Capital Goods Dividend Stocks
UPDATED May 15, 2022
What are the best German (DAX) Capital Goods Dividend Stocks? According to our Simply Wall St analysis these are the best German Capital Goods 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.
3 companies meet this criteria in the German market
XTRA:WAC
Wacker Neuson
Wacker Neuson SE manufactures and distributes light and compact equipment under the Wacker Neuson, Kramer, and Weidemann brand names in Europe, the Americas, and the Asia-Pacific.
Dividend Criteria
Dividend Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: WAC's dividend (4.63%) is in the top 25% of dividend payers in the German market (4.29%)
Notable Dividend
Stable Dividend
Rewards
Trading at 41.3% below our estimate of its fair value
Earnings are forecast to grow 11% per year
Earnings grew by 318.9% over the past year
Risks
No risks detected for WAC from our risks checks.
XTRA:NOEJ
NORMA Group
NORMA Group SE, together with its subsidiaries, manufactures and sells engineered joining technology solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific.
Dividend Criteria
Dividend Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: NOEJ's dividend (2.98%) is low compared to the top 25% of dividend payers in the German market (4.29%).
Stable Dividend
Rewards
Trading at 78.8% below our estimate of its fair value
Earnings are forecast to grow 21.59% per year
Earnings grew by 249.2% over the past year
Risks
Debt is not well covered by operating cash flow
XTRA:KRN
Krones
Krones AG, together with its subsidiaries, plans, develops, and manufactures machines and lines for the production, filling, and packaging technology in Germany and internationally.
Dividend Criteria
Dividend Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: KRN's dividend (1.74%) is low compared to the top 25% of dividend payers in the German market (4.29%).
Stable Dividend
Rewards
Trading at 61.8% below our estimate of its fair value
Earnings are forecast to grow 19.1% per year
Became profitable this year
Risks
No risks detected for KRN from our risks checks.