Choosing Beyond Siltronic For One Superior Dividend Stock
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In the German equity market, where dividends have seen an average growth of 6.4% over the past year, investors are often drawn to stocks offering attractive payouts. However, it's crucial to examine not just the size of the dividend but its growth trajectory as well. Companies with declining dividends, such as Siltronic, may pose risks for those relying on dividend income for long-term financial stability.
Top 10 Dividend Stocks In Germany
| Name | Dividend Yield | Dividend Rating |
| Allianz (XTRA:ALV) | 5.31% | ★★★★★★ |
| Deutsche Post (XTRA:DHL) | 4.67% | ★★★★★★ |
| Südzucker (XTRA:SZU) | 6.41% | ★★★★★☆ |
| OVB Holding (XTRA:O4B) | 4.79% | ★★★★★☆ |
| DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) | 6.67% | ★★★★★☆ |
| MLP (XTRA:MLP) | 5.14% | ★★★★★☆ |
| INDUS Holding (XTRA:INH) | 4.98% | ★★★★★☆ |
| Deutsche Telekom (XTRA:DTE) | 3.24% | ★★★★★☆ |
| Mercedes-Benz Group (XTRA:MBG) | 8.12% | ★★★★★☆ |
| Uzin Utz (XTRA:UZU) | 3.14% | ★★★★★☆ |
Click here to see the full list of 31 stocks from our Top Dividend Stocks screener.
Here we highlight one of our preferred stocks from the screener and one that could be better to shun.
Top Pick
Heidelberg Materials
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Heidelberg Materials AG operates globally, producing and distributing cement, aggregates, ready-mixed concrete, and asphalt, with a market capitalization of approximately €17.59 billion.
Operations: The company generates revenue through several key segments: €11.21 billion from cement, €4.88 billion from aggregates, and €5.90 billion from ready-mixed concrete and asphalt.
Dividend Yield: 3.1%
Heidelberg Materials AG, despite a volatile dividend history over the past decade, has demonstrated resilience with a recent 15% increase in its annual dividend payout to €3 per share. The company's dividends are well-covered by both earnings and cash flows, with payout ratios of 27.3% and 29%, respectively. This coverage is complemented by consistent earnings growth, including a notable 26.6% rise last year and an expected annual growth rate of 4.28%. However, its current yield of 3.16% remains below the German market's top quartile average of 4.66%. Recent strategic moves include significant fixed-income green bond offerings totaling €685 million and an aggressive share buyback program signaling strong financial confidence moving forward.
One To Reconsider
Siltronic
Simply Wall St Dividend Rating: ★★☆☆☆☆