As the German economy faces a contraction for the second consecutive year, with factory orders experiencing a significant decline, investors are increasingly turning their attention to dividend stocks as a potential source of stability and income. In this challenging economic environment, selecting dividend stocks with strong fundamentals can offer resilience and consistent returns amidst market fluctuations.

Top 10 Dividend Stocks In Germany

Click here to see the full list of 33 stocks from our Top German Dividend Stocks screener.

We'll examine a selection from our screener results.

OVB Holding

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

Overview: OVB Holding AG, with a market cap of €273.63 million, operates through its subsidiaries to offer advisory and brokerage services to private households across Europe.

Operations: OVB Holding AG generates revenue primarily from its Insurance Brokers segment, which amounts to €382.93 million.

Dividend Yield: 4.7%

OVB Holding AG, trading at 32.4% below its estimated fair value, offers a stable and reliable dividend history over the past decade. Recent earnings growth of 32.6% supports its dividend sustainability, with a payout ratio of 70.3% and cash flow coverage at 56.6%. Despite a slightly lower yield of 4.69% compared to top German dividend payers, OVB's consistent financial performance underpins its attractiveness for income-focused investors seeking stability in their portfolio returns.

• Click here to discover the nuances of OVB Holding with our detailed analytical dividend report.

• Our expertly prepared valuation report OVB Holding implies its share price may be lower than expected.

Sixt

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

Overview: Sixt SE operates a global network offering mobility services to private and business customers through both corporate and franchise stations, with a market cap of €3.09 billion.

Operations: Sixt SE generates its revenue primarily from Europe (€1.49 billion), Germany (€1.22 billion), and North America (€1.21 billion).

Dividend Yield: 5.5%

Sixt SE's dividend yield ranks in the top 25% of German payers, but its sustainability is questionable due to insufficient free cash flow coverage. Despite a favorable price-to-earnings ratio compared to the market, profit margins have declined from last year. The company's dividends have been volatile over the past decade, indicating unreliability for consistent income. Recent U.S. expansion efforts highlight growth potential; however, dropping from the FTSE All-World Index may affect investor sentiment.