Top 3 German Dividend Stocks to Consider in July 2024

In July 2024, the German market experienced notable volatility, with the DAX index falling by 3.07% amid rising trade tensions between the US and China and mixed signals from economic indicators across Europe. In such a volatile environment, dividend stocks can offer investors potential stability and regular income streams, making them an attractive option to consider.

Top 10 Dividend Stocks in Germany

Name	Dividend yield	Dividend Rating
Allianz (XTRA:ALV)	5.26%	★★★★★★
MLP (XTRA:MLP)	5.21%	★★★★★☆
INDUS Holding (XTRA:INH)	5.19%	★★★★★☆
OVB Holding (XTRA:O4B)	4.71%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.25%	★★★★★☆
Sugar to Sugar (XTRA:SZU)	7.50%	★★★★★☆
DATA MODULE Production and installation of electronic systems (XTRA:DAM)	7.41%	★★★★★☆
Deutsche Telekom (XTRA:DTE)	3.17%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.38%	★★★★★☆
FRoSTA (DB:NLM)	3.15%	★★★★★☆

Click here to see the full list of 30 stocks in our Top German Dividend Stocks filter.

Let’s explore several notable options among the screener results.

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

Preview: Brenntag SE is a global distributor of industrial and specialty chemicals and ingredients, operating in regions including Germany, Europe, the Middle East, Africa, the Americas and Asia Pacific, with a market capitalization of approximately EUR 9.45 billion.

Operations: Brenntag SE generates revenues through its Brenntag Essentials segment in different regions, with €4.28 billion in North America, €3.34 billion in Europe, the Middle East and Africa (EMEA), €708 million in Asia Pacific (APAC) and €670.20 million in Latin America.

Dividend yield: 3.2%

Brenntag SE has demonstrated consistent dividend reliability over the past decade, with its payments well supported by both earnings and cash flow, with payout ratios of 48.9% and 28.1% respectively. Despite yielding 3.21% lower than some German market leaders, dividends are stable and have shown growth. Recent activities include significant share buybacks totalling €750 million and consistent cash dividends paid in May 2024, highlighting continued returns to shareholders against a backdrop of fluctuating quarterly earnings of €4.53 billion to €4 billion year-on-year with net income declining from €215.9 million to €141.4 million.

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

Preview: DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemsen is a Germany-based company specializing in the development, manufacturing and distribution of flat panel displays, monitors, electronic subassemblies and information systems worldwide, with a market capitalization of approximately EUR 95.21 million.

Operations: DATA MODUL generates revenues mainly through two segments: EUR 98.96 million from systems and EUR 175.39 million from displays.

Dividend yield: 7.4%

DATA MODUL’s recent financial performance shows a decline in sales and net income, with first quarter sales down from EUR 72.41 million to EUR 63.53 million and net income down to EUR 2.74 million from EUR 3.31 million year-on-year. Despite a historically unstable dividend history and payout volatility, dividends are supported by a reasonable payout ratio of 50.7% and a low cash payout ratio of 26.9%. Furthermore, its price-to-earnings ratio of 6.8x is significantly below the German market average of 17.8x, suggesting good value relative to its peers.

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

Preview: PWO AG specializes in the production of lightweight construction components made of aluminum and steel for the mobility industry, operating in Germany, the Czech Republic, Canada, Mexico, Serbia and China, with a market capitalization of approximately EUR 91.88 million.

Operations: PWO AG generates sales of EUR 562.18 million in its automotive parts and accessories segment.

Dividend yield: 6%

PWO reported a slight increase in revenue in the first quarter of 2024, to €146.87 million, and net income to €3.32 million, with earnings per share up to €1.06. Despite a high dividend yield of 5.95%, PWO’s dividend history shows volatility over the past decade, with significant annual fluctuations of over 20%. However, dividends are well supported by earnings and cash flows, with payout ratios of 33.3% and 23% respectively, indicating sustainability in current conditions, but caution due to past volatility remains warranted.

Key points to remember

• Unlock more treasures! Our Best German Dividend Stocks Picker has found 27 more companies to discover. Click here to see our carefully curated list of the 30 best German dividend stocks.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.

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