10 Best German Dividend Stocks To Buy Now

2. Volkswagen AG (XETRA:VOW3.DE)

Dividend Yield as of April 21: 7.10%

Volkswagen AG (XETRA:VOW3.DE) is a German automotive company that designs, manufactures, and sells vehicles worldwide. The company owns several well-known brands, including Volkswagen, Audi, Porsche, Lamborghini, Bentley, Ducati, and more. In addition to building cars, trucks, and buses, VOW also provides services like vehicle financing, leasing, insurance, and fleet management. It is one of the best German dividend stocks to consider, with a dividend yield of 7.10% as of April 21.

In the first quarter, Volkswagen AG (XETRA:VOW3.DE)’s global deliveries of fully electric vehicles increased by nearly 60%. Europe led the way, with EV deliveries doubling and electric cars now accounting for about 19% of total sales in Western Europe. Orders across all vehicle types rose by 29%, bringing the total backlog in the region to about one million vehicles. While sales in China dropped as expected, solid growth in Europe and the Americas more than made up for it.

Volkswagen AG’s group sales revenue saw a modest increase in 2024, primarily supported by strong results from the Financial Services segment. However, sales revenue from the automotive business came in at €265.9 billion, declining slightly year-over-year due to lower vehicle volumes. Automotive net cash flow for the year stood at €5 billion, down from €10.7 billion in 2023, reflecting continued high levels of investment and reduced operating profit. Nevertheless, Q4 2024 showed improvement, with €1.7 billion in net cash flow supported by a drop in working capital. The company proposed a dividend of €6.30 per ordinary share and €6.36 per preferred share, corresponding to a payout ratio of approximately 30%, aligning with the company’s long-term dividend policy.