Top German Dividend Stocks To Consider

As the German market navigates through a period of cautious investor sentiment due to escalating Middle East tensions, major indices like the DAX have experienced notable declines. Amidst this backdrop, dividend stocks can offer a measure of stability and income potential, making them an appealing option for investors seeking resilience in uncertain times.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Edel SE KGaA (XTRA:EDL)	6.73%	★★★★★★
Deutsche Post (XTRA:DHL)	4.84%	★★★★★★
SAF-Holland (XTRA:SFQ)	5.41%	★★★★★☆
OVB Holding (XTRA:O4B)	4.69%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.69%	★★★★★☆
Allianz (XTRA:ALV)	4.73%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.28%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	9.25%	★★★★★☆
FRoSTA (DB:NLM)	3.33%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.66%	★★★★★☆

Click here to see the full list of 33 stocks from our Top German Dividend Stocks screener.

Let's review some notable picks from our screened stocks.

Allianz (XTRA:ALV)

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

Overview: Allianz SE, along with its subsidiaries, offers property-casualty insurance, life/health insurance, and asset management services globally, with a market cap of approximately €112.71 billion.

Operations: Allianz SE generates revenue through its key segments: Property-Casualty insurance (€74.95 billion), Life/Health insurance (€45.52 billion), and Asset Management (€3.34 billion).

Dividend Yield: 4.7%

Allianz offers a stable dividend yield of 4.73%, backed by a low cash payout ratio of 23% and a reasonable earnings payout ratio of 60%. Over the past decade, dividends have been reliable and growing. Recent activities include completing a $1.25 billion fixed-income offering and affirming an operating profit target for 2024 at €14.8 billion. The company also expanded its share buyback program to €1.5 billion, reflecting strong financial management practices.

• Get an in-depth perspective on Allianz's performance by reading our dividend report here.
• The analysis detailed in our Allianz valuation report hints at an deflated share price compared to its estimated value.

SAF-Holland (XTRA:SFQ)

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

Overview: SAF-Holland SE manufactures and supplies chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses with a market cap of €712.69 million.

Operations: SAF-Holland SE generates revenue from three primary regions: €863.53 million from the Americas, €276.09 million from Asia/Pacific (APAC)/China/India, and €942.98 million from Europe, the Middle East, and Africa (EMEA).

Dividend Yield: 5.4%

SAF-Holland's dividend yield of 5.41% ranks in the top 25% among German dividend payers. Despite a volatile dividend history over the past decade, current payouts are well-covered by earnings and cash flows, with payout ratios at 41.5% and 25%, respectively. Recent earnings growth of 38.3% supports this coverage, although high debt levels pose a risk. The company forecasts annual sales of around €2 billion for 2024 amidst slightly lower second-half sales expectations.

• Click here to discover the nuances of SAF-Holland with our detailed analytical dividend report.
• Our expertly prepared valuation report SAF-Holland implies its share price may be lower than expected.

technotrans (XTRA:TTR1)

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

Overview: technotrans SE is a global technology and services company with a market cap of €118.81 million.

Operations: technotrans SE generates its revenue from two main segments: Technology, contributing €184.28 million, and Services, accounting for €62.21 million.

Dividend Yield: 3.6%

technotrans offers a dividend yield of 3.6%, below the top quartile in Germany. Despite a volatile and unreliable dividend history, current payouts are adequately covered by earnings and cash flows, with payout ratios at 56.7% and 32.3%, respectively. The stock trades significantly below its estimated fair value, presenting potential for capital appreciation alongside dividends. However, high share price volatility may concern risk-averse investors seeking stable income sources.

• Navigate through the intricacies of technotrans with our comprehensive dividend report here.
• The valuation report we've compiled suggests that technotrans' current price could be quite moderate.

Taking Advantage

• Unlock more gems! Our Top German Dividend Stocks screener has unearthed 30 more companies for you to explore.Click here to unveil our expertly curated list of 33 Top German Dividend Stocks.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

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.

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