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3 High-Yielding German Dividend Stocks With Up To 5.7% Yield

Amidst a backdrop of political uncertainty and fluctuating markets across Europe, Germany's economic landscape presents unique opportunities for investors seeking stability through dividend stocks. In such times, high-yielding German dividend stocks can be particularly appealing, offering potential buffers against volatility while providing income.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.45%

★★★★★★

Deutsche Post (XTRA:DHL)

4.90%

★★★★★★

Südzucker (XTRA:SZU)

6.56%

★★★★★☆

Deutsche Telekom (XTRA:DTE)

3.40%

★★★★★☆

SAF-Holland (XTRA:SFQ)

5.33%

★★★★★☆

MLP (XTRA:MLP)

4.91%

★★★★★☆

INDUS Holding (XTRA:INH)

4.85%

★★★★★☆

DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)

6.10%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

8.39%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.17%

★★★★★☆

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

ANNUNCIO PUBBLICITARIO

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

MVV Energie

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

Overview: MVV Energie AG operates primarily in Germany, offering services such as electricity, heat, gas, water, and waste treatment and disposal with a market capitalization of approximately €2.06 billion.

Operations: MVV Energie AG generates revenue through three main segments: New Energies (€959.74 million), Customer Solutions (€7.54 billion), and Generation and Infrastructure (€1.75 billion).

Dividend Yield: 3.7%

MVV Energie AG's recent earnings reveal a significant drop in net income and EPS, reflecting larger one-off items affecting its financial health. Despite a stable dividend history over the past decade, the current 3.69% yield is below the German market's top quartile, and both earnings and free cash flows currently do not cover these payments. Although trading close to fair value with a low payout ratio of 30.5%, concerns about debt coverage and profit margins persist, casting doubts on future dividend sustainability.

XTRA:MVV1 Dividend History as at Jun 2024
XTRA:MVV1 Dividend History as at Jun 2024

PWO

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

Overview: PWO AG specializes in producing lightweight construction components from aluminum and steel for the mobility industry, operating across Germany, Czechia, Canada, Mexico, Serbia, and China with a market capitalization of €95 million.

Operations: PWO AG generates its revenue primarily through the sale of auto parts and accessories, totaling €562.18 million.

Dividend Yield: 5.8%

PWO AG's recent financial performance shows a steady increase in sales and net income, with first quarter 2024 sales rising to €146.87 million from €141 million the previous year, and annual earnings growing by 25%. Despite this, PWO's dividend history is marked by instability; its dividends have not shown consistent growth and have been volatile over the past decade. However, dividends are currently well-supported financially, evidenced by a low payout ratio of 33.3% and cash payout ratio of 23%, suggesting that while payments are secure, dividend growth remains uncertain.

XTRA:PWO Dividend History as at Jun 2024
XTRA:PWO Dividend History as at Jun 2024

Schloss Wachenheim

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

Overview: Schloss Wachenheim AG is a company that produces and distributes sparkling and semi-sparkling wines across Europe and internationally, with a market capitalization of approximately €0.12 billion.

Operations: Schloss Wachenheim AG generates €441.16 million in revenue from its alcoholic beverages segment.

Dividend Yield: 3.9%

Schloss Wachenheim AG's recent financial results indicate a downturn, with a net loss of €3.07 million in Q3 2024, deepening from €0.502 million the previous year, despite growing sales to €337.91 million over nine months. Analysts predict a potential stock price increase of 32.5%. The company's dividend yield stands at 3.87%, below the top German dividend payers' average of 4.68%. While dividends have been stable for a decade and are supported by earnings with a payout ratio of 54.2%, their sustainability is questionable due to coverage issues by cash flows, highlighted by a high cash payout ratio of 113.1%.

XTRA:SWA Dividend History as at Jun 2024
XTRA:SWA Dividend History as at Jun 2024

Next Steps

  • Get an in-depth perspective on all 31 Top Dividend Stocks by using our screener here.

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Contemplating Other Strategies?

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.

Companies discussed in this article include XTRA:MVV1 XTRA:PWO and XTRA:SWA.

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