Top German Dividend Stocks: Allianz And 2 More Yielding Investments

The German market has shown robust performance recently, with the DAX climbing 3.38% amid growing hopes for interest rate cuts. In this favorable economic environment, dividend stocks can offer a reliable income stream and potential for capital appreciation.

When selecting dividend stocks, it is crucial to consider factors such as the company’s financial health, consistent earnings growth, and a solid track record of paying dividends. With these criteria in mind, let’s explore three top German dividend stocks: Allianz and two other yielding investments that stand out in today’s market conditions.

Top 10 Dividend Stocks In Germany

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

Let’s uncover some gems from our specialized screener.

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

Overview: Allianz SE, along with its subsidiaries, offers property-casualty insurance, life/health insurance, and asset management services globally, with a market cap of approximately €104.55 billion.

Operations: Allianz SE generates revenue from property-casualty insurance (€74.95 billion), life/health insurance (€45.52 billion), and asset management (€3.34 billion) services worldwide.

Dividend Yield: 5.1%

Allianz SE’s dividend payments are well-covered by both earnings (60% payout ratio) and free cash flows (23.1% cash payout ratio), ensuring sustainability. Dividends have been stable and growing over the past 10 years, with a current yield of 5.12%, placing it among the top 25% of German dividend payers. Recent news includes a new partnership with Jetty and Fortegra, reaffirmed earnings guidance for 2024, and robust half-year financial results showing net income growth to €4.99 billion from €4.37 billion last year.

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

Overview: CR Energy AG is an investment company focused on investing in technology companies in Germany, with a market cap of €151.47 million.

Operations: CR Energy AG generates revenue primarily from its Real Estate – Rental segment, which amounts to €68.57 million.

Dividend Yield: 9.7%

CR Energy AG’s dividend yield of 9.71% places it in the top 25% of German dividend payers, though the company has only paid dividends for seven years. Despite recent revenue and net income declines to €68.64 million and €65.78 million respectively, dividends remain well-covered by earnings (22.4% payout ratio) and cash flows (62.6% cash payout ratio). Shareholder dilution over the past year is a concern, but overall value remains attractive at 49.9% below fair value estimates.

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

Overview: KSB SE & Co. KGaA, with a market cap of €1.13 billion, manufactures and supplies pumps, valves, and related services globally through its subsidiaries.

Operations: KSB SE & Co. KGaA generates revenue from three primary segments: €1.52 billion from Pumps, €370.94 million from Fittings, and €978.20 million from KSB Supremeserv.

Dividend Yield: 3.9%

KSB SE KGaA’s dividend payments are well-covered by earnings (29.9% payout ratio) and cash flows (24.2% cash payout ratio). However, its 3.88% dividend yield is lower than the top 25% of German dividend payers. Despite a volatile dividend track record, KSB has increased dividends over the past decade and trades at a significant discount to estimated fair value (77.2%). Recent half-year earnings showed sales of €1.44 billion with net income slightly down to €58.2 million from €62 million last year.

Key Takeaways

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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.

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