Amid a backdrop of moderate growth and heightened political stability in Europe, Germany's market has shown resilience, with the DAX index gaining 1.32% recently. In such an environment, dividend stocks like Heidelberg Materials can appeal to investors looking for steady income streams coupled with potential capital appreciation.
Top 10 Dividend Stocks In Germany
Name
Dividend Yield
Dividend Rating
Allianz (XTRA:ALV)
5.26%
★★★★★★
Südzucker (XTRA:SZU)
6.51%
★★★★★☆
OVB Holding (XTRA:O4B)
4.64%
★★★★★☆
INDUS Holding (XTRA:INH)
5.01%
★★★★★☆
Mercedes-Benz Group (XTRA:MBG)
8.11%
★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)
Overview: Heidelberg Materials AG operates globally, producing and distributing cement, aggregates, ready-mixed concrete, and asphalt, with a market capitalization of approximately €18.05 billion.
Operations: Heidelberg Materials AG generates revenue primarily through its cement (€11.21 billion), aggregates (€4.88 billion), and ready-mixed concrete-asphalt (€5.90 billion) segments.
Dividend Yield: 3%
Heidelberg Materials AG, a German-based company, has demonstrated mixed performance in its dividend strategy. Recently, it increased its dividend to €3 per share, up 15% from the previous year. Despite this increase and a relatively low payout ratio of 27.3%, the company's dividend history over the past decade has been unstable with significant fluctuations in payments. Furthermore, recent financial maneuvers include significant fixed-income green bond offerings totaling €1.37 billion and an aggressive share repurchase program valued at €1.2 billion through 2026, indicating a focus on leveraging financial strategies to potentially stabilize future payouts and shareholder value.
Overview: INDUS Holding AG is a private equity firm focused on mergers, acquisitions, and corporate spin-offs, with a market capitalization of approximately €644.15 million.
Operations: INDUS Holding AG generates its revenue from three primary segments: Materials (€601.79 million), Engineering (€588.82 million), and Infrastructure (€572.78 million).
Dividend Yield: 5%
INDUS Holding AG's recent financial results show a decrease in sales and net income, with sales dropping to €411.24 million and net income to €10.16 million. Despite this downturn, the company maintains a sustainable dividend profile with a low payout ratio of 47% and cash payout ratio of 21%, indicating dividends are well-covered by earnings and cash flows. However, its dividend history has been marked by volatility over the past decade, challenging its reliability as a consistent dividend payer. Trading at 72.4% below estimated fair value suggests potential undervaluation relative to peers.
Overview: Wacker Neuson SE is a company based in Germany that manufactures and distributes light and compact equipment across various regions including Germany, Austria, the United States, and internationally, with a market capitalization of approximately €1.03 billion.
Operations: Wacker Neuson SE generates revenue through three primary segments: Services (€490 million), Light Equipment (€500.70 million), and Compact Equipment (€1.61 billion).
Dividend Yield: 7.6%
Wacker Neuson SE's recent earnings reveal a significant drop, with Q1 sales at €593.1 million and net income at €23.3 million, down from last year's €667.2 million and €62.4 million respectively. Despite this downturn, the company boasts a high dividend yield of 7.63%, ranking in the top 25% in Germany, supported by a decade of growth in dividend payments. However, its dividends are not well-covered by either earnings or cash flows, indicating potential sustainability issues despite a reasonable payout ratio of 53.4%. Analysts predict a possible stock price increase of 42.6%, suggesting some optimism about its valuation relative to peers.
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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.
Companies discussed in this article include XTRA:HEI XTRA:INH and XTRA:WAC.
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