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Mercedes-Benz stock probably offers the highest dividend yield
High dividend yield mainly in the automobile and insurance sectors
Low dividend yield for growth-oriented companies
In recent weeks, shareholders have had to deal with some bad news: from the drastic increase in inflation rates to the Omicron wave and the war in Ukraine. But DAX dividends were little affected. On the contrary: 36 of the 40 companies in the main German index are likely to pay dividends; of these, 34 are even expected to increase their dividends. It is particularly worth taking a look at the company’s dividend yield: this figure indicates the connection between the dividend and the current share price and therefore gives investors an indication of a share’s performance. From this perspective, which DAX stocks are particularly interesting this dividend season?
More than 7 percent dividend yield: Mercedes-Benz, Covestro and BMW
In all likelihood, Mercedes-Benz stock will offer the highest dividend yield this dividend season. According to data from “Brese Online”, the long-established company from Stuttgart shows a generous return of 7.88 percent. The automaker will triple its dividend last year from the expected €1.30 to €5.00 per Mercedes-Benz share.
It is closely followed by the materials manufacturer Covestro, which spun out of Bayer’s plastics division in 2015. In terms of dividend yield, Covestro (7.45 percent) clearly outperforms its former parent company Bayer (3.17 percent). percent), while Bayer shares have recently performed much better than Covestro shares. BMW ranks third among the best DAX dividend payers. Shares of the Bavarian carmaker offer shareholders a dividend yield of 7.34 percent.
High dividend yield, especially in the automobile and insurance sectors
Two other companies in the automotive industry land in the following places with the highest dividend yields: in addition to Mercedes-Benz and BMW, Volkswagen (4.8 percent) and Daimler Truck (4.78 percent) also offer a return respectable dividend. Porsche shares (2.90 percent) are also interesting in this regard.
DAX representatives of the insurance industry are traditionally good dividend payers. Dividend yields are also high this year: Allianz (4.95 percent), Munich Re (4.53 percent) and new DAX member Hannover Re (3.77 percent).
Also in the top ten: BASF, E.ON and HeidelbergCement
In addition to these auto and insurance stocks, there are three other DAX stocks in the top ten that come from different sectors. First and foremost is BASF: The chemical giant from Ludwigshafen is convincing, as is often the case this dividend season, with a whopping 6.52 percent return.
With a yield of 4.71 percent, the generous power provider E.ON is far ahead of its competitor RWE (2.29 percent). However, RWE investors will certainly be able to tolerate this, because RWE has performed significantly better than E.ON on the stock market in recent years. HeidelbergCement is also in the top ten (4.61 percent). The building materials company has been offering its investors a high dividend yield for years, while HeidelbergCement’s share price has been weak for several years.
Deutsche Post, Deutsche Telekom and Siemens with high payouts
In the upper middle field there are several traditional German companies from different areas. Deutsche Post, whose share price has lost ground in recent weeks after a temporary rise in the koruna, still offers its shareholders a high dividend yield of 4.24 percent. Investors in Deutsche Telekom (3.71 percent) and Siemens (3.31 percent) can also expect a reward. Shares of property giant Vonovia, which took over industry rival Deutsche Wohnen in autumn 2021, also pamper investors with a dividend yield of 3.84%.
SAP and Linde with significant dividend increases
The two DAX heavyweights, SAP and Linde, don’t offer particularly high dividend yields of 2.46 percent and 1.45 percent respectively, but both companies are significantly increasing their dividends from last year. Important for Linde: Since the company merged with the Irish company Praxair in 2018, Linde has been based in Dublin and is also listed on the US S&P 500 index. As a result, Linde does not pay an annual dividend, but four dividends quarterly. This dividend policy is common in the United States.
After last year’s number zero: Airbus, Deutsche Bank and Continental pay dividends again
Last year, the number of companies distributing profits from the DAX was lower than in 2022. Due to corona, Airbus, Deutsche Bank and Continental waived a profit distribution in 2021. This year, however, all three companies are paying again: tire maker Continental is again one of the offensive dividend payers with 3.33 percent, while Deutsche Bank (1.69 percent) and Airbus (1.35 percent) are taking it calmly. The aviation industry’s second largest DAX company, MTU Aero Engines, offers investors only a low dividend yield of 1.01 percent.
Dividend payers in the middle: Fresenius, Brenntag, Deutsche Brse and Co.
Many companies from various sectors are in the mid-dividend range: In addition to DAX newcomers Brenntag (2.00 percent) and Siemens Healthineers (1.69 percent), there are also DAX veterans like technology group Fresenius (2.77 percent), dialysis provider Fresenius Medical Care (2.22 percent), Deutsche Börse (2.00 percent), and sporting goods manufacturer adidas (1.52 percent).
Five companies offer a dividend yield of less than 1 percent
The group of DAX companies that offer less than one percent dividend yield, but don’t want to forego a dividend altogether, is a diverse bunch. These include the semiconductor manufacturer Infineon (0.98 percent) and the currently extremely successful pharmaceutical company Merck (0.97 percent). Three groups recently included in the course of the DAX expansion in 2021 also offer low dividend yields: sporting goods manufacturer PUMA (0.94 per cent), Lower Saxony scent maker Symrise (0.94 per cent) and the laboratory supplier Sartorius (0.37 percent). After all, all five companies mentioned here increased their dividend payments compared to the previous year; In addition, its share prices have developed very strongly in recent years.
Four growth-oriented companies do not pay dividends
Ten percent of DAX companies, that is four companies, are not paying dividends this year: food supplier Delivery Hero, meal kit service provider HelloFresh, biotech company QIAGEN and fashion retailer in Zalando line. All four of these companies paid no dividends last year and prefer to reinvest earnings for future growth. But Delivery Hero didn’t even make a profit last year. Rather, the Berlin-based company is still in deficit, but sees itself on the right track in view of strong sales growth.
The dividend yield levels given here are expected values. The actual payout ratio, on the other hand, will only be decided at the respective general meetings of the companies. Therefore, it is quite possible that actual earnings distributions will differ from the dividend yields projected here, especially since the dividend yield is directly influenced by fluctuations in stock price. The general rule here is: the weaker stock prices develop, the higher the dividend yield, provided a fixed dividend has been announced beforehand.
Incidentally, the DAX dividend season started in mid-February with chipmaker Infineon. A particularly large number of general meetings are scheduled for the end of April and May. In all likelihood, the DAX dividend season will end with QIAGEN; The annual general meeting of the biotech company is scheduled for June 29, 2022.
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