3 German Dividend Stocks Yielding Up To 6.8%

As global markets face turbulence, Germany's DAX index has seen a significant decline, reflecting broader economic concerns. Despite this volatility, dividend stocks remain an attractive option for investors seeking steady income. In the current market environment, a good dividend stock is characterized by its ability to provide consistent payouts and demonstrate financial resilience.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Allianz (XTRA:ALV)	5.49%	★★★★★★
Edel SE KGaA (XTRA:EDL)	6.88%	★★★★★★
Deutsche Post (XTRA:DHL)	4.99%	★★★★★★
Mercedes-Benz Group (XTRA:MBG)	9.09%	★★★★★☆
Südzucker (XTRA:SZU)	7.53%	★★★★★☆
INDUS Holding (XTRA:INH)	5.87%	★★★★★☆
MLP (XTRA:MLP)	5.36%	★★★★★☆
Deutsche Telekom (XTRA:DTE)	3.19%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.40%	★★★★★☆
FRoSTA (DB:NLM)	3.23%	★★★★★☆

Click here to see the full list of 31 stocks from our Top German Dividend Stocks screener.

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

Allianz (XTRA:ALV)

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

Overview: Allianz SE, with a market cap of €97.42 billion, operates globally through its subsidiaries offering property-casualty insurance, life/health insurance, and asset management products and services.

Operations: Allianz SE generates revenue from three primary segments: €73.12 billion from property-casualty insurance, €44.96 billion from life/health insurance, and €3.23 billion from asset management products and services worldwide.

Dividend Yield: 5.5%

Allianz SE offers a high and reliable dividend yield of 5.49%, placing it in the top 25% of dividend payers in Germany. The dividends have been stable and growing over the past decade, supported by a reasonable payout ratio (65.1%) and strong cash flow coverage (24%). Recent M&A activities, including potential acquisitions in Queensland and Singapore, highlight Allianz's strategic growth initiatives. Additionally, Allianz completed a €500 million share buyback program this year.

• Get an in-depth perspective on Allianz's performance by reading our dividend report here.
• Our comprehensive valuation report raises the possibility that Allianz is priced lower than what may be justified by its financials.

Edel SE KGaA (XTRA:EDL)

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

Overview: Edel SE & Co. KGaA, with a market cap of €92.76 million, operates as an independent music company in Europe through its subsidiaries.

Operations: Edel SE & Co. KGaA generates revenue through its various subsidiaries, primarily focusing on music production, distribution, and related services across Europe.

Dividend Yield: 6.9%

Edel SE & Co. KGaA provides a high and reliable dividend yield of 6.88%, placing it in the top 25% of German dividend payers. The dividends have been stable and growing over the past decade, supported by a reasonable payout ratio (52.7%) and solid cash flow coverage (71%). Despite high debt levels, recent earnings results showed net income growth to €5.82 million for H1 2024, maintaining steady basic earnings per share at €0.27 year-on-year.

• Click here to discover the nuances of Edel SE KGaA with our detailed analytical dividend report.
• Insights from our recent valuation report point to the potential undervaluation of Edel SE KGaA shares in the market.

KSB SE KGaA (XTRA:KSB)

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

Overview: KSB SE & Co. KGaA, with a market cap of €1.11 billion, manufactures and supplies pumps, valves, and related services globally through its subsidiaries.

Operations: KSB SE & Co. KGaA generates revenue through the global manufacturing and supply of pumps, valves, and associated services.

Dividend Yield: 4%

KSB SE KGaA trades at 78.3% below its estimated fair value, with a dividend payout ratio of 30.7% and a cash payout ratio of 24.2%, indicating strong coverage by earnings and cash flows. However, its dividend track record has been volatile over the past decade despite recent growth in payments. The current yield is lower than the top quartile of German dividend payers. Recent H1 2024 results show sales increased to €1.44 billion, while net income slightly decreased to €58.2 million from €62 million last year.

• Navigate through the intricacies of KSB SE KGaA with our comprehensive dividend report here.
• In light of our recent valuation report, it seems possible that KSB SE KGaA is trading behind its estimated value.

Next Steps

• Explore the 31 names from our Top German Dividend Stocks screener here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Ready To Venture Into Other Investment Styles?

• 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