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Top German (DAX) Software Dividend Stocks
UPDATED Nov 23, 2022
What are the best German (DAX) Software Dividend Stocks?
According to our Simply Wall St analysis these are the best German Software 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.
5 companies meet this criteria in the German market
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 (1.85%) is low compared to the top 25% of dividend payers in the German market (4.99%).
Rewards
Trading at 35.7% below our estimate of its fair value
Earnings are forecast to grow 26.97% per year
Risks
Profit margins (10.5%) are lower than last year (20.8%)
CENIT Aktiengesellschaft operates as an IT consultancy and software company that serves manufacturing and financial service industries.
Dividend Criteria
Growing Dividend
Future Dividend Coverage
High Dividend: CSH's dividend (5.77%) is in the top 25% of dividend payers in the German market (4.92%)
Notable Dividend
Earnings Coverage
Stable Dividend
Rewards
Trading at 51.9% below our estimate of its fair value
Earnings are forecast to grow 35.96% per year
Earnings grew by 29.1% over the past year
Risks
No risks detected for CSH from our risks checks.
Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets in Germany, rest of Europe, the Americas, the Asia Pacific, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: NEM's dividend (0.83%) is low compared to the top 25% of dividend payers in the German market (4.92%).
Rewards
Trading at 41.1% below our estimate of its fair value
Earnings are forecast to grow 12.84% per year
Earnings grew by 31.5% over the past year
Risks
No risks detected for NEM from our risks checks.
All for One Group SE, together with its subsidiaries, provides business software solutions for SAP, Microsoft, and IBM in Germany, Switzerland, Austria, Luxembourg, Italy, and internationally.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: A1OS's dividend (3.24%) is low compared to the top 25% of dividend payers in the German market (4.92%).
Stable Dividend
Rewards
Price-To-Earnings ratio (19.3x) is below the IT industry average (22x)
Earnings are forecast to grow 26.56% per year
Risks
No risks detected for A1OS from our risks checks.
PSI Software AG develops and sells software systems and products for the energy supply, production, infrastructure, software technology, internet applications, and business consultancy sectors worldwide.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: PSAN's dividend (1.78%) is low compared to the top 25% of dividend payers in the German market (4.92%).
Stable Dividend
Rewards
Trading at 51.7% below our estimate of its fair value
Earnings are forecast to grow 21.71% per year
Risks
No risks detected for PSAN from our risks checks.