Top German Dividend Stocks To Watch In May 2024

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As the German market experiences a robust upswing, with the DAX index gaining 4.28% on better-than-expected corporate earnings and optimism around potential interest rate cuts, investors are increasingly looking at dividend stocks as a reliable source of income. In such an environment, a good dividend stock typically combines consistent payout history with solid financial health and growth prospects, making it an attractive option for those seeking stability amidst market fluctuations.

Top 10 Dividend Stocks In Germany

Name

Dividend Yield

Dividend Rating

Edel SE KGaA (XTRA:EDL)

6.38%

★★★★★★

Südzucker (XTRA:SZU)

4.98%

★★★★★☆

Brenntag (XTRA:BNR)

3.01%

★★★★★☆

FRoSTA (DB:NLM)

3.03%

★★★★★☆

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

6.02%

★★★★★☆

MLP (XTRA:MLP)

4.88%

★★★★★☆

SAF-Holland (XTRA:SFQ)

4.82%

★★★★★☆

Mercedes-Benz Group (XTRA:MBG)

7.76%

★★★★★☆

Deutsche Post (XTRA:DHL)

4.59%

★★★★★☆

Uzin Utz (XTRA:UZU)

3.14%

★★★★★☆

Click here to see the full list of 30 stocks from our Top Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

SAF-Holland

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

Overview: SAF-Holland SE manufactures and supplies chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses, with a market cap of €799.85 million.

Operations: SAF-Holland SE generates revenue from manufacturing and supplying chassis-related assemblies and components for trailers (€1.12 billion), trucks (€0.63 billion), semi-trailers (€0.45 billion), and buses (€0.18 billion).

Dividend Yield: 4.8%

SAF-Holland's dividend payments have increased over the past decade but have been volatile and unreliable. Despite trading at 38.9% below estimated fair value, the company's dividends are well covered by earnings (44.5% payout ratio) and cash flows (31.6% cash payout ratio). Recent Q1 2024 results showed a rise in net income to €26.23 million from €19.56 million, indicating strong performance, although high debt levels remain a concern for investors seeking stability in dividend stocks.

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

Südzucker

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

Overview: Südzucker AG, with a market cap of €2.87 billion, produces and sells sugar products in Germany, the European Union, the United Kingdom, and internationally.

Operations: Südzucker AG's revenue segments comprise €1.57 billion from Fruit, €4.18 billion from Sugar, €1.23 billion from Starch, €1.23 billion from CropEnergies, and €2.42 billion from Special Products (excluding Starch).