MLP and 2 Top German Dividend Stocks to Consider

Amid fluctuations in global markets, Germany’s DAX index showed resilience with a slight rise, reflecting investors’ cautious optimism. During this time, dividend stocks in Germany could offer potential stability and steady returns, making them an attractive consideration for those looking to diversify their investment portfolios.

Top 10 dividend stocks in Germany

Click here to see the full list of 33 stocks in our pick of the highest dividend stocks.

We’ll take a look at some of the top picks from our selection tool.

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

Preview: MLP SE operates as a financial services provider serving private, corporate and institutional clients primarily in Germany, with a market capitalization of approximately €0.70 billion.

Operations: MLP SE generates revenue across different segments, with financial advisory contributing €0.43 billion, FERI €0.22 billion, banking €0.20 billion, DOMCURA €0.13 billion euros, real estate in Germany for 0.05 billion euros and the industrial broker adding an additional 0.05 billion euros. 0.04 billion.

Dividend yield: 4.8%

MLP SE, which trades 35.8% below its estimated fair value, offers a dividend yield of 4.78%, ranking in the top 25% of the German market. Despite a volatile dividend history over the past decade, recent earnings growth (9.5% per year over five years) and forecasts (8.85% per year) suggest improvement. Dividends are well covered by earnings with a payout ratio of 62.3% and strongly supported by cash flow with a cash payout ratio of just 10.9%. Recent activities include consistent share buybacks and inclusion in the German SDAX index, improving its investment profile amid fluctuating dividends.

The story continues

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

Preview: K+S Aktiengesellschaft operates globally as a supplier of mineral products to various sectors, including the agricultural, industrial and consumer markets, with a market capitalization of approximately €2.28 billion.

Operations: K+S Aktiengesellschaft generates its revenue mainly from the Europe+ business unit, which contributed €3.67 billion.

Dividend yield: 5.5%

K+S Aktiengesellschaft has seen a significant decline in revenue and net profit in recent quarters, with revenue falling to 988 million euros in the first quarter of 2024 and net profit to 18, 6 million euros compared to the much higher figures of the previous year. Despite these difficulties, the company maintains a dividend of €0.70, even if its sustainability is questionable given the unprofitability and insufficient coverage by profits or free cash flow. The past share repurchase program may provide some confidence to investors, but the overall reliability of dividends remains uncertain due to historical volatility and current financial pressures.

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

Preview: WashTec AG specializes in providing car wash solutions in Germany, Europe, North America and the Asia-Pacific region, with a market capitalization of approximately €0.55 billion.

Operations: WashTec AG generates revenue mainly from its operations in North America, with a contribution of 98.39 million euros.

Dividend yield: 5.4%

WashTec AG’s dividend yield stands at 5.39%, ranking in the top 25% of German dividend payers. However, its payout ratio is high at 106.6%, indicating that dividends are not well covered by earnings, although they are supported by a more reasonable cash payout ratio of 53.5%. Despite historically rising dividends, their reliability has been compromised by volatility over the past decade. Recent financial data shows a slight decline, with sales and net profit for the first quarter of 2024 falling to €100.76 million and €3.12 million respectively from last year’s higher figures, suggesting potential pressure on future payments.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account 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:MLP XTRA:SDF and XTRA:WSU.

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