Top German Dividend Stocks For October 2024

Simply Wall St · 10/16 03:03

As the German economy faces a contraction for the second consecutive year, with factory orders experiencing a significant decline, investors are increasingly turning their attention to dividend stocks as a potential source of stability and income. In this challenging economic environment, selecting dividend stocks with strong fundamentals can offer resilience and consistent returns amidst market fluctuations.

Top 10 Dividend Stocks In Germany

Name Dividend Yield Dividend Rating
Edel SE KGaA (XTRA:EDL) 6.61% ★★★★★★
Deutsche Post (XTRA:DHL) 4.87% ★★★★★★
SAF-Holland (XTRA:SFQ) 5.95% ★★★★★☆
OVB Holding (XTRA:O4B) 4.69% ★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) 7.58% ★★★★★☆
Allianz (XTRA:ALV) 4.58% ★★★★★☆
Uzin Utz (XTRA:UZU) 3.29% ★★★★★☆
Mercedes-Benz Group (XTRA:MBG) 9.25% ★★★★★☆
FRoSTA (DB:NLM) 3.39% ★★★★★☆
MVV Energie (XTRA:MVV1) 3.76% ★★★★★☆

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

We'll examine a selection from our screener results.

OVB Holding (XTRA:O4B)

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

Overview: OVB Holding AG, with a market cap of €273.63 million, operates through its subsidiaries to offer advisory and brokerage services to private households across Europe.

Operations: OVB Holding AG generates revenue primarily from its Insurance Brokers segment, which amounts to €382.93 million.

Dividend Yield: 4.7%

OVB Holding AG, trading at 32.4% below its estimated fair value, offers a stable and reliable dividend history over the past decade. Recent earnings growth of 32.6% supports its dividend sustainability, with a payout ratio of 70.3% and cash flow coverage at 56.6%. Despite a slightly lower yield of 4.69% compared to top German dividend payers, OVB's consistent financial performance underpins its attractiveness for income-focused investors seeking stability in their portfolio returns.

XTRA:O4B Dividend History as at Oct 2024
XTRA:O4B Dividend History as at Oct 2024

Sixt (XTRA:SIX2)

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

Overview: Sixt SE operates a global network offering mobility services to private and business customers through both corporate and franchise stations, with a market cap of €3.09 billion.

Operations: Sixt SE generates its revenue primarily from Europe (€1.49 billion), Germany (€1.22 billion), and North America (€1.21 billion).

Dividend Yield: 5.5%

Sixt SE's dividend yield ranks in the top 25% of German payers, but its sustainability is questionable due to insufficient free cash flow coverage. Despite a favorable price-to-earnings ratio compared to the market, profit margins have declined from last year. The company's dividends have been volatile over the past decade, indicating unreliability for consistent income. Recent U.S. expansion efforts highlight growth potential; however, dropping from the FTSE All-World Index may affect investor sentiment.

XTRA:SIX2 Dividend History as at Oct 2024
XTRA:SIX2 Dividend History as at Oct 2024

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 €519.23 million.

Operations: WashTec AG's revenue segments include €91.10 million from North America, with additional adjustments amounting to €393.04 million.

Dividend Yield: 5.7%

WashTec's dividend yield of 5.67% is among the top 25% in Germany, yet its sustainability is challenged by a high payout ratio of 101.5%, indicating dividends are not well covered by earnings, though cash flow coverage at a 47.9% cash payout ratio is more favorable. Earnings grew modestly by €1.38 million year-over-year for Q2 2024 despite a decline in sales, reflecting some financial resilience amidst fluctuating dividend payments over the past decade.

XTRA:WSU Dividend History as at Oct 2024
XTRA:WSU Dividend History as at Oct 2024

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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.