Top 3 German Dividend Stocks To Watch In October 2024

As global markets react to China's robust stimulus measures, Germany's DAX has surged, reflecting a renewed optimism despite recent economic challenges. Against this backdrop of fluctuating confidence and potential interest rate cuts in Europe, dividend stocks offer a stable income stream for investors. In the current market environment, characterized by mixed economic signals and hopes for stabilization, selecting dividend stocks with strong fundamentals becomes crucial. Here are three German dividend stocks to watch in October 2024.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Edel SE KGaA (XTRA:EDL)	6.76%	★★★★★★
MLP (XTRA:MLP)	5.17%	★★★★★☆
SAF-Holland (XTRA:SFQ)	5.09%	★★★★★☆
OVB Holding (XTRA:O4B)	4.69%	★★★★★☆
Allianz (XTRA:ALV)	4.68%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.69%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	9.13%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.39%	★★★★★☆
FRoSTA (DB:NLM)	3.23%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.66%	★★★★★☆

Click here to see the full list of 34 stocks from our Top German Dividend Stocks screener.

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

OVB Holding (XTRA:O4B)

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

Overview: OVB Holding AG, with a market cap of €273.63 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 to private households across Europe.

Dividend Yield: 4.7%

OVB Holding pays a reliable 4.69% dividend, covered by earnings (70.3%) and cash flows (56.6%). Earnings grew 32.6% last year and are forecast to grow 2.42% annually, supporting sustainable dividends. The stock trades at a 32.6% discount to its estimated fair value, adding potential for capital appreciation alongside stable dividend payments that have increased over the past decade. Recent earnings show strong growth with Q2 revenue at €104.56 million and net income of €4.84 million.

• Navigate through the intricacies of OVB Holding with our comprehensive dividend report here.
• According our valuation report, there's an indication that OVB Holding's share price might be on the cheaper side.

Sixt (XTRA:SIX2)

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

Overview: Sixt SE, with a market cap of €2.86 billion, offers mobility services globally through a network of corporate and franchise stations for both private and business customers.

Operations: Sixt SE generates revenue from various regions, including €1.49 billion in Europe, €1.22 billion in Germany, and €1.21 billion in North America.

Dividend Yield: 5.9%

Sixt SE's dividend yield of 5.95% is among the top 25% in Germany but lacks coverage by free cash flows, raising sustainability concerns. Despite a payout ratio of 75.8%, dividends have been volatile and unreliable over the past decade. Recent earnings show Q2 revenue at €1 billion with net income halved to €48.29 million year-on-year, reflecting financial strain. The stock trades at a favorable P/E ratio of 12.7x compared to the German market's 16.7x, indicating good relative value despite recent index exclusion and expansion efforts in North America.

• Click here to discover the nuances of Sixt with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Sixt is trading behind its estimated value.

WashTec (XTRA:WSU)

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

Overview: WashTec AG provides car wash solutions across Germany, Europe, North America, and the Asia Pacific, with a market cap of €508.53 million.

Operations: WashTec AG's revenue segments include €91.10 million from North America and a segment adjustment of €393.04 million.

Dividend Yield: 5.8%

WashTec's dividend yield of 5.79% ranks in the top 25% in Germany but is not well covered by earnings, with a payout ratio of 101.5%. Despite recent growth in net income and EPS, dividends have been volatile over the past decade. The company’s cash payout ratio of 47.9% suggests better coverage by cash flows, yet high debt levels pose risks. Recent Q2 earnings showed sales at €119.41 million and net income at €7.55 million, up from last year’s €6.17 million.

• Click here and access our complete dividend analysis report to understand the dynamics of WashTec.
• Our comprehensive valuation report raises the possibility that WashTec is priced lower than what may be justified by its financials.

Next Steps

• Click here to access our complete index of 34 Top German Dividend Stocks.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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Ready For A Different Approach?

• 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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