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The Mercedes-Benz share probably offers the highest dividend yield
High dividend yield mainly in auto and insurance sectors
Low dividend yields for growth-oriented companies
In the past few weeks, shareholders have had to cope with some bad news: from the dramatically increasing inflation rates to the Omicron wave and the Ukraine war. But the DAX dividends were little affected. On the contrary: 36 of the 40 companies in the leading German index probably pay a dividend – of these, 34 are even expected to increase their dividends. It is particularly worth taking a look at the company’s dividend yield: This figure indicates the connection between the dividend and the current share price and therefore offers investors an indication of the return on a share. From this perspective, which DAX stocks are particularly interesting in this dividend season?
Over 7 percent dividend yield: Mercedes-Benz, Covestro and BMW
In all likelihood, Mercedes-Benz shares will offer the highest dividend yield this dividend season. According to data from “Brese Online”, the long-established Stuttgart company is showing a lavish return of 7.88 percent. The car manufacturer will triple its last year’s dividend from EUR 1.30 to an expected EUR 5.00 per Mercedes-Benz share.
The materials manufacturer Covestro, which emerged from the Bayer plastics division in 2015, follows closely behind. In terms of dividend yield, Covestro (7.45 percent) has clearly overtaken its former parent company Bayer (3.17 percent), whereas Bayer shares have recently performed significantly better than Covestro shares. BMW is in third place among the best DAX dividend payers. The shares of the Bavarian car manufacturer offer shareholders a dividend yield of a whopping 7.34 percent.
High dividend yield, especially in the auto and insurance sectors
Two other companies from the vehicle industry land in the next places with the highest dividend yields: in addition to Mercedes-Benz and BMW, Volkswagen (4.8 percent) and Daimler Truck (4.78 percent) also offer a respectable dividend yield. The shares of Porsche (2.90 percent) are also interesting in this respect.
The DAX representatives from the insurance industry are traditionally good dividend payers. Dividend yields are also high this year: Allianz (4.95 percent), Munich Re (4.53 percent) and the new DAX member Hannover Re (3.77 percent).
Also in the top ten: BASF, E.ON and HeidelbergCement
Aside from these auto and insurance stocks, there are three other DAX stocks in the top ten that come from different sectors. First and foremost is BASF: The chemical giant from Ludwigshafen is convincing, as is so often the case this dividend season, with a whopping return of 6.52 percent.
With a return of 4.71 percent, the generous energy supplier E.ON is well ahead of its competitor RWE (2.29 percent). However, RWE investors will certainly be able to put up with this, because RWE has performed significantly better than E.ON on the stock exchange in recent years. HeidelbergCement is also in the top ten (4.61 percent). The building materials company has been offering its investors a high dividend yield for years, while HeidelbergCement’s share price has been weak for several years.
Deutsche Post, Deutsche Telekom and Siemens with high payouts
In the upper middle field there are several traditional German companies from different areas. Deutsche Post, whose share price has lost ground in the past few weeks after a temporary corona soaring, still offers its shareholders a high dividend yield of 4.24 percent. Investors in Deutsche Telekom (3.71 percent) and Siemens (3.31 percent) can also look forward to a bounty. The shares of the real estate giant Vonovia, which took over the industry rival Deutsche Wohnen in autumn 2021, also spoil investors with a dividend yield of 3.84 percent.
SAP and Linde with significant dividend increases
The two DAX heavyweights, SAP and Linde, do not offer particularly high dividend yields of 2.46 percent and 1.45 percent respectively, but both companies are significantly increasing their dividends from last year. Important for Linde: Since the company merged with the Irish company Praxair in 2018, Linde is headquartered in Dublin and is also listed in the US S&P 500 index. As a result, Linde does not pay one annual dividend, but four quarterly dividends. This dividend policy is common in the USA.
After last year’s zero number: Airbus, Deutsche Bank and Continental are paying dividends again
Last year, the number of profit-distributing companies from the DAX was smaller than in 2022. Due to corona, Airbus, Deutsche Bank and Continental waived a profit distribution in 2021. This year, however, the three companies are paying again: The tire manufacturer Continental is again one of the offensive dividend payers with 3.33 percent, while Deutsche Bank (1.69 percent) and Airbus (1.35 percent) are taking it easy. The second DAX company from the aviation industry, MTU Aero Engines, offers investors only a low dividend yield of 1.01 percent.
Dividend payers in the middle: Fresenius, Brenntag, Deutsche Brse and Co.
Many companies from various sectors are in the middle dividend range: In addition to the DAX newcomers Brenntag (2.00 percent) and Siemens Healthineers (1.69 percent), there are also DAX veterans such as the medical technology group Fresenius (2.77 percent), dialysis provider Fresenius Medical Care (2.22 percent), Deutsche Börse (2.00 percent) and the sports goods manufacturer adidas (1.52 percent).
Five companies offer less than 1 percent dividend yield
The group of DAX companies that offer less than one percent dividend yield, but do not want to forego a dividend entirely, is a diverse group. These include the semiconductor manufacturer Infineon (0.98 percent) and the currently extremely successful pharmaceutical company Merck (0.97 percent). Three groups newly included in the course of the DAX expansion in 2021 also offer low dividend yields: the sporting goods manufacturer PUMA (0.94 percent), the Lower Saxony aroma manufacturer Symrise (0.94 percent) and the laboratory supplier Sartorius (0.37 percent). After all, all five companies mentioned here increased their dividend payments compared to the previous year; In addition, their share prices have developed very strongly in recent years.
Four growth-oriented companies pay no dividends
Ten percent of the DAX companies, i.e. four companies, are not paying a dividend this year: the food supplier Delivery Hero, the meal kit service provider HelloFresh, the biotech company QIAGEN and the online fashion retailer Zalando. All four of these companies paid no dividends last year and prefer to reinvest profits for future growth. But Delivery Hero did not even make any profits in the past year. Rather, the Berlin company is still in deficit, but sees itself on the right track in view of the strong growth in sales.
The levels of dividend yields given here are expected values. The actual payout ratio, on the other hand, will only be decided at the respective general meetings of the companies. It is therefore quite possible that the actual profit distributions will differ from the dividend yields forecast here – especially since the dividend yield is directly influenced by the fluctuations in the share price. The rule of thumb here is: the weaker the share prices develop, the higher the dividend yield, provided a fixed dividend has been announced beforehand.
Incidentally, the DAX dividend season started in mid-February with the chip manufacturer Infineon. A particularly large number of general meetings are scheduled for the end of April and May. In all likelihood, the DAX dividend season will end with QIAGEN; the annual general meeting of the biotech company is scheduled for June 29, 2022.
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