Top German (DAX) Software Dividend Stocks

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%).

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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%)

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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

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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.

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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%).

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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.

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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

See Full Stock Report

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.

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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

See Full Stock Report

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.

View all Risks and Rewards
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