Deutsche Telekom And Two More Premier German Dividend Stocks

editorial-team@simplywallst.com (Simply Wall St)

26 May 2024 at 11:04 pm·4-min read

Amidst a mixed performance in global markets, with particular stability observed in Germany's DAX index, investors continue to seek reliable income streams. In this context, dividend stocks like Deutsche Telekom offer potential resilience and consistent returns, aligning well with the cautious optimism seen in current market conditions.

Top 10 Dividend Stocks In Germany

Name	Dividend Yield	Dividend Rating
Edel SE KGaA (XTRA:EDL)	6.41%	★★★★★★
Allianz (XTRA:ALV)	5.21%	★★★★★★
Deutsche Post (XTRA:DHL)	4.75%	★★★★★★
Südzucker (XTRA:SZU)	6.47%	★★★★★☆
SAF-Holland (XTRA:SFQ)	4.86%	★★★★★☆
MLP (XTRA:MLP)	4.70%	★★★★★☆
Deutsche Telekom (XTRA:DTE)	3.54%	★★★★★☆
DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)	6.10%	★★★★★☆
Mercedes-Benz Group (XTRA:MBG)	8.03%	★★★★★☆
Uzin Utz (XTRA:UZU)	3.32%	★★★★★☆

Click here to see the full list of 29 stocks from our Top Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Deutsche Telekom

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

Overview: Deutsche Telekom AG operates as a provider of integrated telecommunication services and has a market capitalization of approximately €107.69 billion.

Operations: Deutsche Telekom AG generates revenue primarily from three segments: €25.34 billion in Germany, €11.97 billion in Europe, and €72.18 billion in the United States, along with additional contributions from Systems Solutions and Group Headquarters & Group Services totaling €3.94 billion and €2.27 billion respectively.

Dividend Yield: 3.5%

Deutsche Telekom AG reported a slight increase in Q1 2024 sales to €28.59 billion from €28.49 billion year-over-year, with net income significantly reduced to €1.98 billion from €15.36 billion due to unspecified factors, impacting earnings per share which stood at €0.40 compared to previous €3.09. Despite this, the company maintains a stable dividend yield of 3.54%, supported by both earnings and cash flows with payout ratios of 87% and 19.4% respectively, suggesting sustainability albeit below the top German dividend payers' average of 4.6%. Analysts predict potential stock price growth of 24%.

XTRA:DTE Dividend History as at May 2024

EDAG Engineering Group

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

Overview: EDAG Engineering Group AG specializes in the development of vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle industries globally, with a market capitalization of €298.75 million.

Operations: EDAG Engineering Group AG generates its revenue primarily from three segments: Vehicle Engineering (€488.93 million), Production Solutions (€268.86 million), and Electrics/Electronics (€111.45 million).

Dividend Yield: 4.6%

EDAG Engineering Group AG, with a Price-To-Earnings ratio of 10.8x, is valued below the German market average. Despite a dividend yield of 4.6%, which ranks in the top quartile in Germany, its dividend history over the past 8 years shows volatility and inconsistency in payments. Dividends are well-covered by both earnings and cash flows with payout ratios of 49.7% and 46.4% respectively, suggesting financial prudence but raising concerns about future stability given recent management changes and slight declines in net income as reported on May 8, 2024.

XTRA:ED4 Dividend History as at May 2024

Uzin Utz

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

Overview: Uzin Utz SE, with a market cap of approximately €243.14 million, is engaged in developing, manufacturing, and selling construction chemical system products across Germany, the United States, the Netherlands, and other international markets.

Operations: Uzin Utz SE generates revenue through various segments, with €210.21 million from Germany - Laying Systems, €83.83 million from Western Europe, €82.87 million from Netherlands - Laying Systems, €73.33 million from the USA, €36.31 million from Netherlands - Wholesale, €35.16 million from Germany - Surface Care and Refinement, and €32.53 million from Germany - Machinery and Tools; smaller contributions include €25.98 million from Southern/Eastern Europe.

Dividend Yield: 3.3%

Uzin Utz SE, with a Price-To-Earnings ratio of 10.8x, trades below the average in the German market. Its dividend yield stands at 3.32%, lower than the top quartile of German dividend stocks. The company's dividends are supported by a conservative payout ratio of 35.7% and an even lower cash payout ratio of 23.9%, indicating strong coverage by both earnings and cash flows. Despite a slight decline in net income and sales for the year ended December 31, 2023, Uzin Utz has maintained stable dividends over the past decade, although its growth prospects are modest with an expected earnings increase of about 5.64% annually.

XTRA:UZU Dividend History as at May 2024

Next Steps

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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.

Companies discussed in this article include XTRA:DTEXTRA:ED4 XTRA:UZU and

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Top 10 Dividend Stocks In Germany

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