Top Dividend Stocks On The German Exchange

As the European Central Bank's recent rate cuts fuel optimism for further monetary easing, Germany's DAX Index has seen a notable increase, reflecting a positive sentiment in the market. In this context of economic adjustments and investor interest, dividend stocks on the German exchange stand out as attractive options for those seeking steady income streams amidst fluctuating market conditions.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Deutsche Post (XTRA:DHL)	4.89%	★★★★★★
SAF-Holland (XTRA:SFQ)	5.96%	★★★★★☆
OVB Holding (XTRA:O4B)	4.66%	★★★★★☆
Mensch und Maschine Software (XTRA:MUM)	3.02%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.09%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.31%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	9.08%	★★★★★☆
Allianz (XTRA:ALV)	4.68%	★★★★★☆
FRoSTA (DB:NLM)	3.23%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.76%	★★★★★☆

Click here to see the full list of 32 stocks from our Top German Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

SIMONA (DB:SIM0)

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

Overview: SIMONA Aktiengesellschaft is a company that develops, manufactures, and markets a variety of semi-finished thermoplastics, pipes, fittings, and profiles globally, with a market cap of €372 million.

Operations: SIMONA Aktiengesellschaft generates revenue of €578.85 million from its segments, which include semi-finished plastics and pipes, as well as fittings and finished parts.

Dividend Yield: 3.1%

SIMONA's dividend yield of 3.14% is below the German market's top quartile, yet its dividends are well covered by both earnings and cash flows, with payout ratios at 35.7% and 35%, respectively. Despite a decade of increasing dividends, their stability remains questionable due to past volatility. Recent financials show net income growth to €13.24 million for H1 2024, suggesting potential earnings support for future payouts despite lower sales figures compared to last year.

• Dive into the specifics of SIMONA here with our thorough dividend report.
• Upon reviewing our latest valuation report, SIMONA's share price might be too pessimistic.

Heidelberg Materials (XTRA:HEI)

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

Overview: Heidelberg Materials AG, with a market cap of €17.32 billion, operates globally through its subsidiaries to produce and distribute cement, aggregates, ready-mixed concrete, and asphalt.

Operations: Heidelberg Materials AG generates revenue primarily from its Cement segment (€10.90 billion), followed by Ready-Mixed Concrete-Asphalt (€5.71 billion), and Aggregates (€4.92 billion).

Dividend Yield: 3.1%

Heidelberg Materials' dividend yield of 3.1% is lower than the top 25% of German dividend payers, but its dividends are well covered by earnings and cash flows, with payout ratios at 29.6% and 27.2%, respectively. Despite a history of volatility, dividends have grown over the past decade. Recent financials indicate decreased net income to €574.3 million for H1 2024, while a recent €495.73 million fixed-income offering highlights strategic financial maneuvers amidst fluctuating earnings.

• Navigate through the intricacies of Heidelberg Materials with our comprehensive dividend report here.
• Insights from our recent valuation report point to the potential undervaluation of Heidelberg Materials shares in the market.

Wacker Neuson (XTRA:WAC)

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

Overview: Wacker Neuson SE manufactures and distributes light and compact equipment across Germany, Austria, the United States, and internationally, with a market cap of approximately €984.86 million.

Operations: Wacker Neuson's revenue is primarily derived from Compact Equipment (€1.53 billion), Services (€502.60 million), and Light Equipment (€480.20 million).

Dividend Yield: 7.9%

Wacker Neuson offers a high dividend yield of 7.94%, ranking in the top 25% of German dividend payers, but its sustainability is questionable due to a high cash payout ratio of 418.3%. Despite past volatility, dividends have grown over the last decade. Recent earnings show declines, with Q2 sales dropping to €611.7 million and net income halving to €31.4 million year-on-year, impacting profit margins now at 4.6% from last year's 8%.

• Click here to discover the nuances of Wacker Neuson with our detailed analytical dividend report.
• Our comprehensive valuation report raises the possibility that Wacker Neuson is priced lower than what may be justified by its financials.

Make It Happen

• Gain an insight into the universe of 32 Top German Dividend Stocks by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com