Significant increases despite stock market sadness – how much dividend yield the MDAX companies are offering this year

The MDAX, which has contained 50 companies instead of 60 since autumn 2021, usually receives significantly less attention than the German stock exchange barometer DAX. But especially in the dividend season, it can pay off to broaden your horizons and analyze the smaller German corporations more closely. On average, the best dividend payers from the MDAX offer a higher dividend yield than those from the much-noticed DAX.

Who will win the title of MDAX Dividend King?

The title of the best dividend payer from the MDAX goes to RTL this year (expected dividend yield of 9.91 percent). The media company based in Luxembourg and Cologne, which operates 68 television and 31 radio channels, is increasing its dividend from EUR 3.00 per share in the previous year to EUR 5.00 per share. Although RTL is extremely generous with its dividend payments, it should not be forgotten that the company’s share price performance has been disappointing in recent years.

Telefonica, ProSiebenSat.1, freenet and WACKER CHEMIE complete the top five

With ProSiebenSat.1 Media (6.89 percent), an RTL rival also ends up in the top five of the best MDAX dividend payers. The telecommunications company Telefonica Deutschland (7.16 percent) also spoils its shareholders with high dividends year after year. However, the share prices of the O2 mother have been so weak in recent years that the high dividend yields are likely to be little consolation for long-term oriented shareholders. The industry rival freenet (6.44 percent) also attracts investors with a high profit distribution and thus ranks fourth among the best dividend payers. Competitor United Internet (1.61 percent), the parent company of providers such as 1&1, GMX and Web.de, acts much more sparingly in the dividend season. The top five in the MDAX dividend ranking list is completed by the Munich company WACKER CHEMIE (5.07 percent), whose share price has risen sharply in recent years.

Real estate companies always with high returns

In addition to the telecommunications and media companies, real estate groups also enjoy a reputation as solid dividend payers. The high distributions from the MDAX real estate companies Grand City Properties (4.54 percent), TAG Immobilien (4.48 percent), Aroundtown (4.41 percent) and LEG Immobilien (3.96 percent) will also reinforce this reputation in 2022. According to “Börse Online”, however, the shareholders of the real estate company Deutsche Wohnen, which was taken over by Vonovia in autumn 2021, will have to forego a dividend this time.

Chemical companies traditionally reliable dividend payers

Chemical companies are once again offering high dividend yields in the MDAX dividend season: Evonik (4.65 percent), FUCHS PETROLUB (3.15 percent) and LANXESS (2.63 percent) have yields well above two percent. Shareholders of the fertilizer manufacturer K+S (0.71 percent), on the other hand, have to be satisfied with a significantly lower return – but in view of the impressive performance of the K+S share price, this is certain for shareholders who pursue a buy-and-hold strategy to get over.

The insurance company Talanx (3.96 percent), the outdoor advertising service provider Ströer (3.60 percent) and the rental car company Sixt (2.98 percent) are also in the top dividend yield group of the MDAX. All three companies have been strong performers on the German stock exchanges in recent years, with Talanx and Ströer in particular constantly increasing their dividends.

Industry sector mostly pays average dividend yields

The MDAX industrial companies from German medium-sized companies mostly pay average dividend yields. The cooking system manufacturer RATIONAL (1.59 percent), the waste disposal company Befesa (1.75 percent), the copper producer Aurubis (1.54 percent), the mechanical engineering companies AIXTRON (1.50 percent) and Dürr ( 1.86 percent), the packaging company Gerresheimer (1.89 percent) and the cell tower operator Vantage Towers (1.91 percent). The defense company Rheinmetall (1.71 percent) also offers a comparatively low dividend yield. But: The low percentage is related to the recent price rally as a result of the Bundeswehr rearmament. In fact, Rheinmetall increased its payouts significantly compared to the previous year.

GEA, KION GROUP and Knorr- Bremse pay a dividend yield of more than two percent

Some companies from the industrial sector, on the other hand, can still come up with at least two percent dividend yields. These include the diversified industrial group GEA (2.37 percent), the two mechanical engineering companies Jungheinrich (2.71 percent) and KION GROUP (2.52 percent) and the brake system manufacturer Knorr- Bremse (2.67 percent). On the other hand, the consumer goods group Beiersdorf (0.73 percent) pays a low dividend, which in March was relegated from the DAX to the second index league for the second time in just a few months. The luxury textiles manufacturer HUGO BOSS (1.33 percent), which is on the upswing, increased its dividend significantly compared to last year, the new CEO Daniel Grieder brings much needed fresh wind to the traditional company from Metzingen.

No dividends: These MDAX companies do not pay a dividend

As is well known, exceptions confirm the rule: Even in the MDAX, which has a high dividend overall, there are some companies that do not pay dividends. While at Lufthansa and Fraport this is probably mainly related to the significantly reduced passenger volume in air traffic due to the Corona crisis, the growth-oriented companies TeamViewer, Hypoport, EVOTEC or CTS Eventim prefer to reinvest profits for further growth. The reasons for the waiver of dividends by Commerzbank and thyssenkrupp, on the other hand, are of a different nature: This is not related to investments in growth innovations, but can primarily be explained by the problematic financial situation of these flagging traditional companies.

Some MDAX companies rather stingy

Siemens Energy (0.71 percent), the medical technology company Carl Zeiss Meditec (0.67 percent) and the IT system house Bechtle (1.09 percent) are rather stingy when it comes to their dividend payments. The very successful construction software manufacturer Nemetschek (0.44 percent) pays out a very low dividend, but has been able to inspire shareholders with enormous price increases in recent years. The share price, which has been strong recently, is thus pushing down the dividend yield, while in absolute terms it has recently risen constantly. On the other hand, the energy company Uniper (0.30 percent), which is suffering significantly from the Western sanctions against Russia, has lost considerable value in recent weeks. Thus, the low dividend is just a drop in the ocean.

Some growth stocks pay large dividends

However, the semiconductor company Siltronic (3.26 percent), the battery manufacturer Varta (2.76 percent), the IT infrastructure provider Software AG (2.43 percent), the online marketplace Scout24 (1.61 percent) and the IT Service company CANCOM (1.79 percent) with its relatively high dividend yields, that growth orientation and profit distribution are not necessarily contradictory.

An important side note: The dividend amounts mentioned here are only expected values ​​- the actual payment, however, will be decided at the respective general meetings of the companies.

Incidentally, the MDAX dividend season is already in full swing. Most of the general meetings of companies take place in April and May. The last general meeting will be that of Vantage Towers on July 28, 2022.

Editorial office finanzen.net

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