10 Best German Dividend Stocks To Buy Now

3. Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE)

Dividend Yield as of April 21: 6.12%

Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE) is a well-known German company that designs and produces cars and motorcycles under popular brands like BMW, MINI, and Rolls-Royce. It also operates BMW Motorrad for motorcycles and special-purpose vehicles. BMW is one of the best German dividend stocks to buy. In 2024, BMW ended the year with €7.5 billion in pre-tax earnings and €4.9 billion in free cash flow, despite investing €18.2 billion in R&D and capital projects. Strategic inventory reductions in Q4 helped boost cash flow. The company’s financial position remains solid, with automotive net financial assets holding steady at €46 billion.

Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE) proposed a dividend of €4.30 per common share and €4.32 per preferred share, totaling €2.7 billion, putting the payout ratio at 36.7%, comfortably within its target range. BMW also fast-tracked its €2 billion share buyback program, completing it six months early and reducing its total shares by over 7%. At the next AGM, the company plans to seek approval for a new five-year share buyback authorization of up to 10% of the share capital.

In Q1 2025, Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE) delivered 586,000 vehicles globally, down 1.4% due to weak demand in China, but the company experienced growth in Europe and the US, up  6.2% and 4%, respectively. EV sales climbed 32.4% to over 109,000 units, with Europe up 64%. BMW is on track to hit 3 million electrified and 1.5 million fully electric vehicles sold globally this year.