The top DAX stocks with a dividend yield of more than 5%? Of course, the selection in this circle is not too large. However, there are two strong and enduring candidates at the moment who might well fit that description.
For me, Allianz and BASF are two of the biggest stocks on the DAX that currently have a dividend yield of over 5%. But much more importantly: where the opportunities should outweigh the risks due to this fairly dovish rating. Let’s take a closer look at that.
Leading DAX holding with 5% dividend: BASF
One of the first major stocks on the DAX to have such a rating at the moment is BASF. In fact, with a payout of €3.40 and the current share price of around €54, the dividend yield is even higher than 6%. A valuation measure that historically looks pretty cheap even for cyclicals.
Of course, BASF’s action has some risks. For example, a cyclical strategic orientation due to the quite cyclical segment. But the management of the chemical company balances this cyclicality with consistency whenever it can. Take the dividend, for example, which has at least remained constant despite all adversity and has increased again this year by 10 euro cents.
With a dividend yield of more than 6%, the BASF share is one of the top DAX stocks currently attracting attention with economic advantages. But even a price-earnings ratio of a moderate 9 after a very successful 2021 fiscal year is pretty cheap. Investors with a long-term perspective who don’t mind cyclicality can certainly take a closer look at this valuation.
Allianz: Favorable risk-benefit ratio!
For me, Allianz is also one of the top DAX stocks that now has a 5% dividend yield. With an expected dividend of €10.80 and a share price of around €214, the dividend yield is slightly above this minimum. But being quick could pay off: In recent weeks, Allianz stock has risen significantly again, meanwhile we’ve even seen a 6% dividend yield as a valuation.
Insurers are also somewhat sensitive to the economy. But the Allianz stock makes up for it with consistency wherever possible. The dividend has been a model of consistency, reliability and even modest growth since the last financial crisis. In more difficult years, management at least always kept the dividend per share constant, share buybacks were the bargaining chip, which was partially eliminated.
But here, too, the overall valuation is so cheap that we can talk about a top DAX stock that has good prospects. At current share prices, the P/E ratio is less than 12. Definitely not too expensive to generate a solid total return with moderate growth and a strong and growing dividend for years to come.
Item 2 of the top DAX Stocks with a Dividend Yield of over 5%! first appeared in The Motley Fool Germany.
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Vincent owns shares in Allianz and BASF. The Motley Fool does not own any of the shares mentioned.
Motley Fool Germany 2022
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