10 Best German Dividend Stocks To Buy Now

4. BASF SE (XETRA:BAS.DE)

Dividend Yield as of April 21: 5.36%

BASF SE (XETRA:BAS.DE) is a German player in the chemicals industry, offering a wide range of products across six business segments – Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. Its products range from petrochemicals and high-performance materials to additives for industrial use, coatings, and crop protection. BASF SE (XETRA:BAS.DE) ranks 4th on our list of the best German dividend stocks to buy.

On March 25, BASF SE (XETRA:BAS.DE) sold its 49% stake in the Nordlicht 1 and 2 wind farms back to Vattenfall. However, the partnership is not ending. BASF will continue working with Vattenfall through a long-term renewable energy supply deal to power its European chemical operations. While the sale will lead to a €300 million accounting loss in early 2025, BASF stays committed to cutting carbon dioxide emissions. Renewable electricity now makes up 26% of its total usage, up from 20% the year before, and it plans to keep pushing that number higher.

In 2024, BASF’s sales dropped to €65.3 billion from €68.9 billion in 2023, driven by price cuts and lower precious metal prices in the Surface Technologies segment. While core businesses and agricultural solutions saw volume increases, the overall decline was impacted by competition and currency fluctuations. However, net income rose to €1.3 billion, which included a significant gain from selling Wintershall Dea assets. Cash flow from operations decreased by €1.2 billion to €6.9 billion, and free cash flow also dropped to €748 million. BASF invested €5.1 billion, focusing on the Verbund site in China, and stayed under its investment forecast. The company plans to return at least €12 billion to shareholders from 2025 to 2028, with a proposed 2024 dividend of €2.25 per share.