Deutsche Telekom And Two More German Dividend Stocks To Consider

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As the Eurozone emerges from a recession with a surprising GDP growth and moderated core inflation, the broader European markets have shown mixed responses amid fluctuating interest rate expectations. In this context, German dividend stocks like Deutsche Telekom offer an interesting consideration for investors looking for potential stability and yield in a recovering economic landscape.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Edel SE KGaA (XTRA:EDL)

6.30%

★★★★★★

Deutsche Post (XTRA:DHL)

4.75%

★★★★★★

Talanx (XTRA:TLX)

3.41%

★★★★★☆

SAF-Holland (XTRA:SFQ)

5.15%

★★★★★☆

FRoSTA (DB:NLM)

3.05%

★★★★★☆

DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM)

5.92%

★★★★★☆

MLP (XTRA:MLP)

5.35%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

7.75%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.14%

★★★★★☆

K+S (XTRA:SDF)

5.09%

★★★★★☆

Click here to see the full list of 30 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, with a market capitalization of approximately €108.45 billion.

Operations: Deutsche Telekom AG generates revenue primarily from three segments: Germany (€25.19 billion), the United States (€72.44 billion), and Europe (€11.79 billion).

Dividend Yield: 3.5%

Deutsche Telekom AG, a major player in the telecommunications sector, reported a significant increase in net income to €17.79 billion for 2023 from €8.00 billion the previous year, despite a slight decline in annual sales from €117.05 billion to €114.69 billion. The company maintains a stable dividend history over the past decade but faces challenges with its dividend coverage; its current payout ratio stands at 93.6%, indicating potential sustainability issues as dividends are not well covered by earnings or free cash flow (19.5% cash payout ratio). Additionally, Deutsche Telekom's dividend yield of 3.52% is lower than the top quartile of German dividend payers at 4.6%. Despite these concerns, recent strategic conferences and partnerships indicate active efforts to innovate and expand its market presence.

XTRA:DTE Dividend History as at May 2024
XTRA:DTE Dividend History as at May 2024

EDAG Engineering Group

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

Overview: EDAG Engineering Group AG specializes in designing vehicles, derivatives, modules, and production facilities for the automotive and commercial vehicle sectors globally, with a market capitalization of approximately €288.75 million.