3 German Dividend Stocks With Up To 5.5% Yield

The German stock market has shown resilience, with the DAX index gaining 1.70% amid growing optimism for potential interest rate cuts by the European Central Bank. Despite a weak manufacturing sector, eurozone business activity has been buoyed by events like the Paris Olympics. In this context, dividend stocks can offer a stable income stream and potential capital appreciation, making them an attractive option for investors seeking reliable returns in uncertain economic times.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Edel SE KGaA (XTRA:EDL)	7.08%	★★★★★★
Allianz (XTRA:ALV)	5.02%	★★★★★★
Deutsche Post (XTRA:DHL)	4.83%	★★★★★★
All for One Group (XTRA:A1OS)	3.12%	★★★★★☆
MLP (XTRA:MLP)	5.15%	★★★★★☆
OVB Holding (XTRA:O4B)	4.71%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.51%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.24%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.81%	★★★★★☆
FRoSTA (DB:NLM)	3.33%	★★★★★☆

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

Let's uncover some gems from our specialized screener.

FRoSTA (DB:NLM)

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

Overview: FRoSTA Aktiengesellschaft, with a market cap of €412.16 million, develops, produces, and markets frozen food products in Germany, Poland, Austria, Italy, and Eastern Europe.

Operations: FRoSTA Aktiengesellschaft generates revenue through the development, production, and marketing of frozen food products across Germany, Poland, Austria, Italy, and Eastern Europe.

Dividend Yield: 3.3%

FRoSTA pays a reliable dividend of 3.33%, though it's lower than the top 25% of German dividend payers. The company's dividends have been stable and growing over the past decade, supported by a low cash payout ratio (19.3%) and earnings payout ratio (40%). Recent earnings for H1 2024 showed steady performance with net income at €15.5 million, indicating continued financial stability to support future dividends.

• Click to explore a detailed breakdown of our findings in FRoSTA's dividend report.
• Our expertly prepared valuation report FRoSTA implies its share price may be too high.

Bertrandt (XTRA:BDT)

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

Overview: Bertrandt Aktiengesellschaft, with a market cap of €246.58 million, provides engineering services.

Operations: Bertrandt Aktiengesellschaft generates revenue from three primary segments: Digital Engineering (€640.06 million), Electrical Systems/Electronics (€409.76 million), and Physical Engineering (€253.89 million).

Dividend Yield: 4.9%

Bertrandt's dividend yield of 4.92% ranks in the top 25% of German dividend payers, with a payout ratio of 71.1%, indicating earnings cover the dividends. However, recent earnings showed a net loss for Q3 2024 and decreased net income over nine months compared to last year. The company's dividend payments have been volatile over the past decade, though they are well covered by cash flows with a cash payout ratio of 26.8%.

• Click here and access our complete dividend analysis report to understand the dynamics of Bertrandt.
• Upon reviewing our latest valuation report, Bertrandt's share price might be too pessimistic.

EDAG Engineering Group (XTRA:ED4)

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

Overview: EDAG Engineering Group AG develops vehicles, derivatives, modules, and production facilities for the global automotive and commercial vehicle industries, with a market cap of €246.50 million.

Operations: EDAG Engineering Group AG generates revenue through three main segments: Vehicle Engineering (€488.93 million), Production Solutions (€268.86 million), and Electrics/Electronics (€111.45 million).

Dividend Yield: 5.6%

EDAG Engineering Group offers a dividend yield of 5.58%, placing it in the top 25% of German dividend payers. The company's dividends are well covered by both earnings (payout ratio: 49.7%) and cash flows (cash payout ratio: 46.4%). However, EDAG's dividend history is less stable, with payments being volatile over its eight-year track record. Despite this, its Price-to-Earnings ratio of 8.9x suggests good value compared to the broader German market average of 16.6x.

• Delve into the full analysis dividend report here for a deeper understanding of EDAG Engineering Group.
• Upon reviewing our latest valuation report, EDAG Engineering Group's share price might be too optimistic.

Seize The Opportunity

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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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