MLP And 2 Top German Dividend Stocks For Your Portfolio

As global markets navigate mixed economic signals and fluctuating earnings reports, Germany's DAX has shown resilience with a notable 1.35% gain. In this dynamic environment, dividend stocks can offer a stable income stream and potential for long-term growth. When considering dividend stocks, it's essential to focus on companies with strong financial health, consistent earnings, and a solid track record of dividend payments.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Allianz (XTRA:ALV)	5.27%	★★★★★★
INDUS Holding (XTRA:INH)	5.14%	★★★★★☆
OVB Holding (XTRA:O4B)	4.66%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.60%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.46%	★★★★★☆
Südzucker (XTRA:SZU)	7.43%	★★★★★☆
MLP (XTRA:MLP)	5.14%	★★★★★☆
Deutsche Telekom (XTRA:DTE)	3.20%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.33%	★★★★★☆
FRoSTA (DB:NLM)	3.17%	★★★★★☆

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

Let's dive into some prime choices out of the screener.

MLP (XTRA:MLP)

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

Overview: MLP SE, with a market cap of €635.11 million, offers financial services to private, corporate, and institutional clients in Germany through its subsidiaries.

Operations: MLP SE generates revenue through various segments including Financial Consulting (€426.19 million), FERI (€221.45 million), Banking (€195.50 million), DOMCURA (€131.71 million), Real Estate (€51.96 million), and Industrial Broker services (€35.97 million).

Dividend Yield: 5.1%

MLP SE's recent earnings report shows a solid performance with revenue rising to €284.11 million and net income increasing to €27.76 million for Q1 2024. Despite its volatile dividend history, MLP's current dividend yield of 5.14% is among the top in Germany, and dividends are well-covered by both earnings (62.3%) and cash flows (10.9%). The company also completed a share buyback program, repurchasing over 1 million shares for €6.2 million, which may support future dividend stability.

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

Sixt (XTRA:SIX2)

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

Overview: Sixt SE, with a market cap of €2.82 billion, provides global mobility services for private and business customers through its corporate and franchise station network.

Operations: Sixt SE generates revenue from various regions, including €1.49 billion from Europe, €1.21 billion from Germany, and €1.14 billion from North America.

Dividend Yield: 6%

Sixt SE’s dividend payments have been volatile over the past decade, though they are covered by earnings with a payout ratio of 54.6%. Despite trading at good value and being in the top 25% of dividend payers in Germany, Sixt's dividends are not supported by free cash flows. Recent expansions in the U.S., including new branches and ride-hailing services, highlight growth potential but also come amid a net loss of €23.12 million for Q1 2024.

• Take a closer look at Sixt's potential here in our dividend report.
• Our expertly prepared valuation report Sixt implies its share price may be lower than expected.

WashTec (XTRA:WSU)

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

Overview: WashTec AG offers car wash solutions across Germany, Europe, North America, and the Asia Pacific with a market cap of €496.48 million.

Operations: WashTec AG's revenue segments include €98.39 million from North America and €393.63 million from segment adjustments.

Dividend Yield: 5.9%

WashTec's dividend yield of 5.93% places it in the top 25% of German dividend payers, though its high payout ratio of 106.6% indicates dividends are not well covered by earnings. Despite a reasonable cash payout ratio of 53.5%, dividends have been volatile over the past decade, with no consistent growth pattern. Recent Q1 2024 results showed a decline in sales to €100.76 million and net income to €3.12 million compared to the previous year.

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

Key Takeaways

• Click this link to deep-dive into the 31 companies within our Top German Dividend Stocks screener.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com