Top 3 German Dividend Stocks To Watch

As Germany's DAX Index has recently seen a 1.70% rise amid growing hopes for interest rate cuts by the European Central Bank, investors are increasingly looking at dividend stocks as a stable income source in these uncertain times. In this environment, a good dividend stock not only offers consistent payouts but also demonstrates resilience and growth potential in fluctuating market conditions.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Allianz (XTRA:ALV)	4.92%	★★★★★★
All for One Group (XTRA:A1OS)	3.02%	★★★★★☆
MLP (XTRA:MLP)	5.22%	★★★★★☆
OVB Holding (XTRA:O4B)	4.74%	★★★★★☆
SAF-Holland (XTRA:SFQ)	4.87%	★★★★★☆
INDUS Holding (XTRA:INH)	5.41%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.53%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.27%	★★★★★☆
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.

Below we spotlight a couple of our favorites from our exclusive screener.

All for One Group (XTRA:A1OS)

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

Overview: All for One Group SE, with a market cap of €235.02 million, offers business software solutions for SAP, Microsoft, and IBM across Germany, Switzerland, Austria, Poland, Luxembourg, and internationally through its subsidiaries.

Operations: All for One Group SE generates revenue primarily from its CORE segment (€442.47 million) and LOB segment (€77.01 million).

Dividend Yield: 3%

All for One Group offers a reliable dividend yield of 3.02%, which is lower than the top 25% of German dividend payers. However, its dividends are well-covered by earnings and cash flows, with payout ratios of 49% and 19%, respectively. The company has consistently increased its dividends over the past decade and maintains stable payments. Recent earnings reports show improved financial performance, with net income rising to €10.29 million for nine months ending June 30, 2024.

• Delve into the full analysis dividend report here for a deeper understanding of All for One Group.
• Insights from our recent valuation report point to the potential undervaluation of All for One Group shares in the market.

OVB Holding (XTRA:O4B)

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

Overview: OVB Holding AG, with a market cap of €270.77 million, offers advisory and brokerage services to private households across Europe through its subsidiaries.

Operations: OVB Holding AG generates €382.93 million in revenue from its insurance brokerage services for private households in Europe.

Dividend Yield: 4.7%

OVB Holding reported strong earnings for Q2 2024, with revenue rising to €104.56 million and net income increasing to €4.84 million. The company offers a reliable dividend yield of 4.74%, though slightly below the top 25% of German dividend payers. Dividends have been stable and growing over the past decade, supported by a payout ratio of 70.3% from earnings and 56.6% from cash flows, indicating sustainability and reliability for investors seeking steady income streams.

• Navigate through the intricacies of OVB Holding with our comprehensive dividend report here.
• Our expertly prepared valuation report OVB Holding implies its share price may be lower than expected.

ProCredit Holding (XTRA:PCZ)

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

Overview: ProCredit Holding AG, with a market cap of €505.35 million, provides commercial banking services to small and medium enterprises and private customers across Europe, South America, and Germany through its subsidiaries.

Operations: ProCredit Holding AG generates €422.15 million in revenue from its banking services.

Dividend Yield: 7.5%

ProCredit Holding reported half-year net income of €57.6 million, down from €64.06 million last year, with earnings per share at €0.98 versus €1.09 previously. Despite a volatile dividend history over the past 7 years, its current payout ratio of 35.3% ensures dividends are well covered by earnings and forecasted to remain sustainable at 37.2%. The dividend yield stands in the top 25% of German payers but is less reliable due to historical volatility and high bad loans (2.4%).

• Unlock comprehensive insights into our analysis of ProCredit Holding stock in this dividend report.
• The valuation report we've compiled suggests that ProCredit Holding's current price could be quite moderate.

Next Steps

• Delve into our full catalog of 32 Top German Dividend Stocks here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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.

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