German Dividend Stocks To Watch In July 2024

As of July 2024, the German market has faced a notable downturn, with the DAX index dropping by 3.07% amidst broader European economic challenges and rising global trade tensions. This environment prompts investors to consider the stability offered by dividend-paying stocks, which can provide potential income streams and a degree of protection against market volatility.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Allianz (XTRA:ALV)	5.26%	★★★★★★
INDUS Holding (XTRA:INH)	5.26%	★★★★★☆
MLP (XTRA:MLP)	5.24%	★★★★★☆
OVB Holding (XTRA:O4B)	4.79%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.29%	★★★★★☆
Südzucker (XTRA:SZU)	7.58%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.41%	★★★★★☆
Deutsche Telekom (XTRA:DTE)	3.19%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.38%	★★★★★☆
FRoSTA (DB:NLM)	3.12%	★★★★★☆

Click here to see the full list of 29 stocks from our Top German Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

Brenntag (XTRA:BNR)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: Brenntag SE operates as a distributor of industrial and specialty chemicals and ingredients across regions including Germany, Europe, the Middle East, Africa, the Americas, and Asia Pacific, with a market capitalization of approximately €9.43 billion.

Operations: Brenntag SE generates revenue through its Brenntag Essentials segment, with sales distributed as follows: €4.28 billion in North America, €3.34 billion in Europe, the Middle East & Africa (EMEA), €708 million in Asia Pacific (APAC), and €670.20 million in Latin America.

Dividend Yield: 3.2%

Brenntag SE offers a consistent dividend yield of 3.21%, although it's lower than the top German market payers. The dividends are well-supported, with a payout ratio of 48.9% and a cash payout ratio of 28.1%, indicating sustainability from both earnings and cash flow perspectives. Dividends have shown stability over the past decade, growing without significant volatility, despite recent earnings declines as Q1 2024 sales dropped to €4 billion from €4.53 billion year-over-year, impacting net income which fell to €141.4 million from €215.9 million.

• Click here and access our complete dividend analysis report to understand the dynamics of Brenntag.
• The analysis detailed in our Brenntag valuation report hints at an deflated share price compared to its estimated value.

INDUS Holding (XTRA:INH)

Simply Wall St Dividend Rating: ★★★★★☆

Overview: INDUS Holding AG is a private equity firm that specializes in mergers and acquisitions as well as corporate spin-offs, with a market capitalization of approximately €613.22 million.

Operations: INDUS Holding AG generates its revenue from three primary segments: Materials (€601.79 million), Engineering (€588.82 million), and Infrastructure (€572.78 million).

Dividend Yield: 5.3%

INDUS Holding AG's dividend yield of 5.26% ranks in the top 25% of German dividend payers, supported by a modest payout ratio of 47% and a low cash payout ratio of 21%, indicating sustainability from earnings and cash flow perspectives. Despite this, the company's dividends have shown volatility over the past decade, with significant annual fluctuations. Recent financials reveal a downturn, with Q1 2024 sales dropping to €411.24 million from €451.88 million year-over-year and net income decreasing to €10.16 million from €16.03 million, impacting basic EPS which fell to €0.38 from €0.93 previously.

• Get an in-depth perspective on INDUS Holding's performance by reading our dividend report here.
• Upon reviewing our latest valuation report, INDUS Holding's share price might be too pessimistic.

Wacker Neuson (XTRA:WAC)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Wacker Neuson SE is a global manufacturer and distributor of light and compact equipment, operating primarily in Germany, Austria, the United States, with a market capitalization of approximately €0.98 billion.

Operations: Wacker Neuson SE generates revenue through three main segments: Services (€490 million), Light Equipment (€500.70 million), and Compact Equipment (€1.61 billion).

Dividend Yield: 8%

Wacker Neuson SE's dividend yield of 7.96% positions it well above the German market average, despite recent financial setbacks with Q1 2024 sales and net income dropping to €593.1 million and €23.3 million respectively from higher figures last year. The company's dividend sustainability is questionable, as it is not well covered by free cash flows, and its history shows volatility in payments over the past decade. However, its low price-to-earnings ratio at 6.7x suggests a good value relative to peers.

• Dive into the specifics of Wacker Neuson here with our thorough dividend report.
• The valuation report we've compiled suggests that Wacker Neuson's current price could be quite moderate.

Make It Happen

• Take a closer look at our Top German Dividend Stocks list of 29 companies by clicking here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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