Top German Dividend Stocks To Watch In August 2024

As the European economy experiences a boost from the Paris Olympics and hopes rise for potential rate cuts by the ECB, Germany's DAX has shown promising gains, reflecting a positive sentiment among investors. In this favorable environment, dividend stocks can offer stability and income, making them an attractive option for those looking to navigate these dynamic market conditions.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Allianz (XTRA:ALV)	4.99%	★★★★★★
Deutsche Post (XTRA:DHL)	4.82%	★★★★★★
All for One Group (XTRA:A1OS)	3.02%	★★★★★☆
MLP (XTRA:MLP)	5.16%	★★★★★☆
OVB Holding (XTRA:O4B)	4.69%	★★★★★☆
INDUS Holding (XTRA:INH)	5.42%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.47%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.31%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.78%	★★★★★☆
FRoSTA (DB:NLM)	3.33%	★★★★★☆

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

We're going to check out a few of the best picks from our screener tool.

Bayerische Motoren Werke (XTRA:BMW)

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

Overview: Bayerische Motoren Werke Aktiengesellschaft develops, manufactures, and sells automobiles, motorcycles, and spare parts and accessories globally, with a market cap of approximately €52.92 billion.

Operations: Bayerische Motoren Werke Aktiengesellschaft's revenue segments include €132.39 billion from Automotive, €3.15 billion from Motorcycles, and €37.87 billion from Financial Services.

Dividend Yield: 7.1%

BMW's dividend yield of 7.08% places it in the top 25% of German dividend payers, but its high cash payout ratio (5457.9%) raises concerns about sustainability. Although trading at a good value (17.5% below fair estimate) and having a low earnings payout ratio (36%), dividends have been volatile over the past decade. Recent buybacks (€879 million for 8,891,035 shares) may support share prices but don't directly address dividend reliability issues.

• Click to explore a detailed breakdown of our findings in Bayerische Motoren Werke's dividend report.
• The valuation report we've compiled suggests that Bayerische Motoren Werke's current price could be quite moderate.

MLP (XTRA:MLP)

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

Overview: MLP SE, with a market cap of €635.02 million, offers financial services to private, corporate, and institutional clients in Germany through its subsidiaries.

Operations: MLP SE generates revenue from various segments, including Financial Consulting (€429.61 million), FERI (€231.23 million), Banking (€206.97 million), DOMCURA (€129.26 million), Deutschland.Immobilien (€51.61 million), and Industrial Broker (€36.51 million).

Dividend Yield: 5.2%

MLP SE's recent earnings report showed a notable increase in net income to €10.31 million for Q2 2024, compared to €2.39 million a year ago, indicating strong financial performance. The company's dividend payments have been volatile over the past decade but are well-covered by both earnings (54.2% payout ratio) and cash flows (11.1% cash payout ratio). Although MLP's dividend yield is attractive and among the top 25% in Germany, its unstable dividend track record may concern some investors seeking consistent returns.

• Get an in-depth perspective on MLP's performance by reading our dividend report here.
• In light of our recent valuation report, it seems possible that MLP is trading behind its estimated value.

Mensch und Maschine Software (XTRA:MUM)

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

Overview: Mensch und Maschine Software SE offers CAD/CAM/CAE, product data management, and building information modeling/management solutions in Germany and internationally, with a market cap of €931.21 million.

Operations: Mensch und Maschine Software SE's revenue is derived from two primary segments: M+M Software (€107.71 million) and M+M Digitization (€216.19 million).

Dividend Yield: 3%

Mensch und Maschine Software SE reported solid earnings growth for Q2 2024, with net income rising to €7.34 million from €6.58 million a year ago. Despite stable and growing dividend payments over the past decade, the current dividend yield of 3.01% is below Germany's top-tier payers. The company's high payout ratio (91%) indicates dividends are not well covered by earnings, though they are supported by cash flows (65% cash payout ratio).

• Click here and access our complete dividend analysis report to understand the dynamics of Mensch und Maschine Software.
• Our valuation report here indicates Mensch und Maschine Software may be undervalued.

Key Takeaways

• Get an in-depth perspective on all 32 Top German Dividend Stocks by using our screener here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready For A Different Approach?

• 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.

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