3 German Dividend Stocks Yielding Up To 7.3%

With European inflation nearing the central bank’s target and Germany’s DAX reaching fresh peaks, the German market is showing promising signs of stability. In this environment, dividend stocks can offer a reliable income stream for investors looking to capitalize on steady economic conditions.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
OVB Holding (XTRA:O4B)	4.74%	★★★★★★
Allianz (XTRA:ALV)	4.90%	★★★★★★
MLP (XTRA:MLP)	5.26%	★★★★★☆
SAF-Holland (XTRA:SFQ)	4.99%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.55%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	7.63%	★★★★★☆
Südzucker (XTRA:SZU)	7.39%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.36%	★★★★★☆
MVV Energie (XTRA:MVV1)	3.78%	★★★★★☆
FRoSTA (DB:NLM)	3.33%	★★★★★☆

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

Underneath we present a selection of stocks filtered out by our screen.

K+S

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

Overview: K+S Aktiengesellschaft, with a market cap of €1.90 billion, operates globally as a supplier of mineral products for the agricultural, industrial, consumer, and community sectors.

Operations: K+S generates €3.72 billion in revenue from its Operating Unit Europe+.

Dividend Yield: 6.6%

K+S's dividend yield of 6.6% is among the top 25% in Germany, but its payout ratio of 2952.2% indicates dividends are not covered by earnings, raising sustainability concerns. While dividends have grown over the past decade, they remain volatile and unreliable. Recent financials show mixed results: Q2 sales increased to €873.8 million, but net loss was €6.1 million; H1 net income dropped significantly to €12.6 million from €218.2 million last year.

• Get an in-depth perspective on K+S' performance by reading our dividend report here.

• According our valuation report, there's an indication that K+S' share price might be on the cheaper side.

XTRA:SDF Dividend History as at Sep 2024

SAF-Holland

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

Overview: SAF-Holland SE manufactures and supplies chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses, with a market cap of €773.52 million.

Operations: SAF-Holland SE generates revenue from three primary regions: €863.53 million from the Americas, €276.09 million from Asia/Pacific (APAC)/China/India, and €942.98 million from Europe, The Middle East, and Africa (EMEA).

Dividend Yield: 5%

SAF-Holland's dividend yield of 4.99% places it in the top 25% of German dividend payers, and its low payout ratio of 41.5% indicates dividends are well covered by earnings and cash flows. However, the company's dividend history has been volatile over the past decade. Recent financials show mixed results: Q2 sales dropped to €507.09 million from €555.67 million last year, but net income rose to €24.04 million from €17.58 million, with EPS increasing to €0.53 from €0.39.

• Delve into the full analysis dividend report here for a deeper understanding of SAF-Holland.

• Upon reviewing our latest valuation report, SAF-Holland's share price might be too pessimistic.

XTRA:SFQ Dividend History as at Sep 2024

Südzucker

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

Overview: Südzucker AG is a company that produces and sells sugar products in Germany, the rest of the European Union, the United Kingdom, the United States, and internationally, with a market cap of €2.49 billion.

Operations: Südzucker AG generates revenue from various segments including Fruit (€1.58 billion), Sugar (€4.59 billion), Starch (€1.12 billion), CropEnergies (€1.16 billion), and Special Products excluding Starch (€2.40 billion).

Dividend Yield: 7.4%

Südzucker's dividend yield of 7.39% ranks it among the top 25% of German dividend payers, supported by a low payout ratio of 39.4%. However, its dividend history has been volatile over the past decade. Recent Q1 earnings showed sales of €2.55 billion and net income dropping to €83 million from €171 million last year, with EPS declining to €0.36 from €0.80. Additionally, Südzucker completed a share buyback program worth €1.55 million in June 2024.

• Click here and access our complete dividend analysis report to understand the dynamics of Südzucker.

• In light of our recent valuation report, it seems possible that Südzucker is trading behind its estimated value.

XTRA:SZU Dividend History as at Sep 2024

Key Takeaways

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include XTRA:SDF XTRA:SFQ and XTRA:SZU.

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