Heidelberg Materials And 2 Other Top German Dividend Stocks To Own

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As the European economy experiences a boost from the Paris Olympics and hopes rise for interest rate cuts by the ECB, Germany's DAX has seen a notable uptick. Amid this backdrop of cautious optimism, dividend stocks remain an attractive option for investors seeking stable returns. In this article, we will explore Heidelberg Materials and two other top German dividend stocks that stand out in today's market environment. These companies offer potential resilience and consistent income streams amidst economic fluctuations.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Allianz (XTRA:ALV)

5.00%

★★★★★★

Deutsche Post (XTRA:DHL)

4.82%

★★★★★★

All for One Group (XTRA:A1OS)

3.23%

★★★★★☆

MLP (XTRA:MLP)

5.21%

★★★★★☆

OVB Holding (XTRA:O4B)

4.71%

★★★★★☆

INDUS Holding (XTRA:INH)

5.42%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

8.54%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.35%

★★★★★☆

MVV Energie (XTRA:MVV1)

3.78%

★★★★★☆

FRoSTA (DB:NLM)

3.31%

★★★★★☆

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

Let's uncover some gems from our specialized screener.

Heidelberg Materials

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

Overview: Heidelberg Materials AG, with a market cap of €16.91 billion, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide through its subsidiaries.

Operations: Heidelberg Materials AG generates revenue from various segments, including €10.90 billion from cement, €4.92 billion from aggregates, and €5.71 billion from ready-mixed concrete and asphalt.

Dividend Yield: 3.2%

Heidelberg Materials has shown a volatile dividend history over the past decade, with payments sometimes dropping by over 20%. Despite this, dividends are well-covered by earnings (payout ratio: 29.6%) and cash flows (cash payout ratio: 27.3%). Recent earnings reports show a decline in net income to €574.3 million for H1 2024 from €718.7 million in H1 2023, which could impact future dividend stability. Additionally, the company is executing a share repurchase program worth up to €1.2 billion through 2026, potentially affecting dividend payouts and stock value.

XTRA:HEI Dividend History as at Aug 2024
XTRA:HEI Dividend History as at Aug 2024

Deutsche Lufthansa

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

Overview: Deutsche Lufthansa AG operates as an aviation company worldwide and has a market cap of approximately €6.82 billion.

Operations: Deutsche Lufthansa AG generates revenue primarily from Passenger Airlines (€29.04 billion), Maintenance, Repair and Overhaul Services (MRO) (€7.06 billion), Logistics (€2.93 billion), and Additional Businesses and Group Functions (€1.01 billion).