Exploring Dividend Stocks: Choosing One Over RWE For Better Opportunities
In This Article:
Investors often look to dividend stocks in Germany for a reliable income stream. However, it's important to scrutinize the stability of these dividends. Companies like RWE have experienced significant fluctuations in their dividend payouts, presenting a higher risk for those dependent on consistent dividend income.
Top 10 Dividend Stocks In Germany
| Name | Dividend Yield | Dividend Rating |
| Allianz (XTRA:ALV) | 5.32% | ★★★★★★ |
| Deutsche Post (XTRA:DHL) | 4.90% | ★★★★★★ |
| Brenntag (XTRA:BNR) | 3.34% | ★★★★★☆ |
| Südzucker (XTRA:SZU) | 6.62% | ★★★★★☆ |
| DATA MODUL Produktion und Vertrieb von elektronischen Systemen (XTRA:DAM) | 6.62% | ★★★★★☆ |
| MLP (XTRA:MLP) | 5.24% | ★★★★★☆ |
| INDUS Holding (XTRA:INH) | 4.99% | ★★★★★☆ |
| Deutsche Telekom (XTRA:DTE) | 3.28% | ★★★★★☆ |
| Mercedes-Benz Group (XTRA:MBG) | 8.21% | ★★★★★☆ |
| Uzin Utz (XTRA:UZU) | 3.14% | ★★★★★☆ |
Click here to see the full list of 30 stocks from our Top Dividend Stocks screener.
Let's take a closer look at one of our picks from the screened companies and one you may wish to avoid.
Top Pick
Novem Group
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Novem Group S.A. is a Luxembourg-based company specializing in the development and supply of trim elements and decorative function elements for car interiors, operating globally with a market capitalization of approximately €0.25 billion.
Operations: The company generates €0.64 billion in revenue from its Auto Parts & Accessories segment.
Dividend Yield: 7.0%
Novem Group S.A., with a dividend yield of 6.99%, stands out in the top 25% of German dividend payers. The company's dividends are well-supported by earnings and cash flows, with payout ratios at 37.7% and 36.1%, respectively, indicating sustainability despite recent declines in sales and net income for FY2024 to EUR 635.5 million and EUR 34.8 million from previous higher figures. However, its short dividend history and lack of growth in payments highlight potential concerns for long-term stability.
-
Click to explore a detailed breakdown of our findings in Novem Group's dividend report.
-
Upon reviewing our latest valuation report, Novem Group's share price might be too pessimistic.
One To Reconsider
RWE
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: RWE Aktiengesellschaft operates in the generation and supply of electricity from both renewable and conventional sources across Germany, the UK, other parts of Europe, North America, and internationally, with a market capitalization of approximately €23.77 billion.
Operations: RWE's revenue segments include €2.44 billion from Offshore Wind, €29.53 billion from Supply & Trading, €3.56 billion from Onshore Wind/Solar, €10.58 billion from Flexible Generation, and €4.84 billion from Phaseout Technologies.