In this article, we will take a look at 10 Best German Dividend Stocks To Buy Now.
At the end of January this year, Germany’s government significantly slashed its GDP growth forecast for 2025 to just 0.3% from the prior estimate of 1.1%. German economy minister Robert Habeck expressed concern, highlighting stagnation despite some positive signs like rising credit demand. This revision is in line with projections from other institutions like the IMF and Bundesbank. Germany’s economy shrank by 0.2% in 2024, following a 0.3% decline in 2023. The government pointed to stagnant growth plans, geopolitical uncertainties, and structural issues such as labor shortages and weak investment. While the country faces challenges, there is hope for better growth by 2026.
Similarly, Germany’s Ifo Institute has also cut its 2025 growth forecast to just 0.2%, pointing to sluggish consumer spending and hesitancy among companies to invest. While a slight improvement to 0.8% is expected next year, the outlook remains shaky due to political uncertainty and possible US trade policies. Despite some recovery in purchasing power, consumer confidence is still low, and industries are feeling the pressure from weak demand and growing global competition. Ifo also warned that US tariffs on European goods could pose a serious threat to German exports.
According to the Association of German Banks, a stronger recovery is not likely until 2026, when growth could reach 1.4%. The outlook has worsened, especially after the U.S. announced a 25% tariff on imported cars, causing a major blow to German automakers. Corporate investment is also expected to stay sluggish, with even the projected 3.5% increase in 2026 falling short of previous post-crisis rebounds. Still, experts say that strong reforms and a more competitive tax policy from the next government could help turn things around sooner.
Jari Stehn, Chief European Economist at Goldman Sachs Research, shed some light on the German economy and commented back in December 2024:
“Even though industrial production is down significantly over the last few years, the amount of value added has actually been much more stable. German companies have been able to respond by moving out of relatively low-margin production in chemicals or paper, and so on, into higher value production. I think the way forward essentially is for German companies to continue to do that.”
With that outlook in mind, individuals who want to diversify their portfolios and add income-generating stocks to their investment mix can invest in some stable German dividend stocks. Let’s take a look below.
Copyright: felker / 123RF Stock Photo
Our Methodology
For this article, we used the iShares DivDAX® UCITS ETF (DE) to filter out German dividend stocks. The ETF aims to replicate the performance of an index comprising 15 high dividend yield stocks selected from the 30 largest and most actively traded companies on the Frankfurt Stock Exchange’s Prime Standard segment. From this fund, we focused on picking prominent stocks with positive investor sentiment, stable yields, and strong dividend policies. The list below is ranked in ascending order of dividend yield as of April 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Deutsche Telekom AG (XETRA:DTE.DE)
Dividend Yield as of April 21: 3.26%
Headquartered in Bonn, Germany, Deutsche Telekom AG (XETRA:DTE.DE) is a global telecommunications provider that provides fixed-network, broadband, mobile, and internet-based TV services. The company also dabbles in cloud and security solutions for enterprises and public institutions. On January 23, Bernstein lifted the price target on Deutsche Telekom AG (XETRA:DTE.DE) from €32 to €38 and maintained an Outperform rating on the shares. The company is exhibiting strong growth, especially in the US, driven by its 5G lead and pricing power. Analysts are optimistic, though the stock has not fully reflected its potential. It is one of the best German dividend stocks to watch.
Deutsche Telekom AG (XETRA:DTE.DE)’s service revenue was up 3.7%, and both free cash flow and adjusted earnings per share climbed 19% during 2024. The company invested over €10 billion in US deals, demonstrating confidence in the market and a push beyond just connectivity. DTE regained a 51.5% stake in T-Mobile US, and its shares reached a 24-year high last year. In Germany, the company added around 300,000 new mobile customers due to a strong multi-segment strategy.
Deutsche Telekom AG (XETRA:DTE.DE) is doubling down on fiber and 5G expansion, especially in Germany and across Europe, and investing in new tech and services to generate extra revenue. Their B2B business will focus on cloud, security, and AI, and DTE is targeting €1.5 billion in new consumer revenue through platforms like Magenta Moments. The company is also prioritizing shareholder returns, with up to €2 billion in share buybacks set for 2025.
9. Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (XETRA:MUV2.DE)
Dividend Yield as of April 21: 3.33%
Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (XETRA:MUV2.DE), based in Munich and founded in 1880, is a global insurance and reinsurance company. Its plans include policies from life, health, and property reinsurance to specialty coverage like cyber, agriculture, and natural catastrophes. Munich Re is one of the best German dividend stocks to invest in, with a dividend yield of 3.33% as of April 21.
On March 24, Goldman Sachs raised the price target on Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (XETRA:MUV2.DE) from €562 to €573, but downgraded the stock from Buy to Neutral. Munich Re’s stock has climbed about 20% since September 2024, outperforming the broader market. While analysts at Goldman Sachs still see strong earnings and capital return potential, the current valuation looks a bit stretched, and with earnings estimates now matching market expectations, there is not much room left for surprise gains.
Munich Re reported a net profit of €5.7 billion in 2024, beating its annual targets for the fourth year in a row. The company’s performance continues to outpace its peers, both in earnings and in shareholder returns. Since launching its Ambition 2025 strategy back in 2021, the share price has essentially doubled, crossing €500 in 2024. Munich Re also plans to increase its dividend to €20 per share and has approved a new €2 billion share buyback, €500 million more than last year, pending shareholder approval.
8. E.ON SE (XETRA:EOAN.DE)
Dividend Yield as of April 21: 3.60%
Ranking 8th on our list of the best German dividend stocks is E.ON SE (XETRA:EOAN.DE), an Essen-based energy company operating in Germany, the UK, Sweden, the Netherlands, and internationally. The company manages power and gas distribution networks, provides sustainable energy solutions for cities, industries, and households, and installs smart energy meters, solar systems, and heating solutions.
On January 9, 2025, E.ON SE (XETRA:EOAN.DE) raised €1.75 billion through two new bond issues – an €850 million bond due in 2033 with a 3.5% coupon, and a €900 million green bond maturing in 2040 with a 4.0% coupon. The offering saw strong demand, attracting over €4.3 billion in orders. With this, E.ON has already covered a large part of its 2025 funding needs early in the year.
In fiscal year 2024, E.ON SE (XETRA:EOAN.DE) reported an adjusted EBITDA of €9.0 billion, landing at the high end of its guidance, and a net income of €2.9 billion. 2023 had some one-off gains, so profits in 2024 were slightly lower than last year. However, underlying performance improved because of smart investments and solid operations. E.ON invested a record €7.5 billion into expanding and modernizing its energy networks. That includes nearly half a million new connections to the grid across Europe. The company also poured more money into digital energy tools, battery storage, EV charging, and smart meters, especially in the UK and Germany. E.ON plans to invest €43 billion between 2024 and 2028, with the bulk going toward electricity networks.
7. Brenntag SE (XETRA:BNR.DE)
Dividend Yield as of April 21: 3.79%
Brenntag SE (XETRA:BNR.DE) is a German distributor of chemicals and specialty ingredients, with operations in the US, the UK, China, Canada, and across Europe. The company also offers services like custom blending, repackaging, inventory and logistics support, and technical advice. Brenntag supports a wide range of industries, including nutrition, pharma, beauty, water treatment, and multiple industrial sectors such as coatings, construction, and rubber. Brenntag SE (XETRA:BNR.DE) is one of the best German dividend stocks to purchase.
On November 22, 2024, Berenberg upgraded Brenntag SE (XETRA:BNR.DE) stock from Hold to Buy, with a price target of €76. Brenntag’s stock had fallen 28% year-to-date in November, but Berenberg sees this as a buying opportunity. The firm believes the current price offers a good entry point and sees the market’s expectations for next year as more realistic. The new price target suggests a potential 30% upside from current levels.
Brenntag SE (XETRA:BNR.DE) partnered exclusively with GFBiochemicals on March 18 to distribute their eco-friendly levulinate esters across Europe’s CASE markets. These next-gen solvents are made from agricultural waste like corn cobs and sugarcane residue, offering a safer, biodegradable alternative to traditional fossil-based options. With no flammability or toxicity issues, they are designed to meet the growing demand for sustainable, high-performance solutions in coatings and industrial applications. This collaboration aligns with both companies’ goals to drive greener chemistry and help the industry reduce its environmental impact.
6. Allianz SE (XETRA:ALV.DE)
Dividend Yield as of April 21: 4.42%
Allianz SE (XETRA:ALV.DE) is a Munich-based global financial services company that specializes in insurance and asset management. It provides property, life, health, and travel insurance for individuals and businesses, as well as asset management services like investment funds and real estate. It is one of the best German dividend stocks to consider, with a dividend yield of 4.42% as of April 21.
On December 13, 2024, Jefferies raised the price target on Allianz SE (XETRA:ALV.DE) to €325 from €310, but adjusted its rating from Buy to Hold. Jefferies has taken note of Allianz’s stronger growth strategy, which now aims for a 7-9% annual increase in earnings per share. However, the stock was downgraded to Hold as the market has already priced in the optimistic outlook.
Allianz SE (XETRA:ALV.DE) announced on March 17 that it is selling its 26% stake in both Bajaj Allianz General and Life Insurance to its partner, Bajaj Finserv, for around €2.6 billion. While it is stepping away from the joint ventures, Allianz still sees strong growth potential in India and plans to explore new ways to grow there, not just as an investor but also as an operator. The sale, which will be completed in phases and needs regulatory approval, aligns with Allianz’s updated capital strategy, focusing on reinvesting in promising opportunities, especially in India.
5. Deutsche Post AG (XETRA:DHL.DE)
Dividend Yield as of April 21: 5.17%
Deutsche Post AG (XETRA:DHL.DE) is a German multinational mail and logistics company. The company offers fast delivery services, transportation by air, sea, and land, customized logistics and warehousing solutions, parcel shipping and international deliveries, and local mail and package services. It is one of the best German dividend stocks for a diversified income portfolio.
On April 17, Deutsche Bank reiterated a Buy rating on Deutsche Post AG (XETRA:DHL.DE) but trimmed the price target from €50 to €42. Deutsche Bank cut its 2025 earnings forecast for DHL to €5.98 billion, just below the company’s target of €6 billion, due to trade uncertainties and recession risks. Despite the cautious outlook, the investment firm sees value in the stock.
Deutsche Post AG (XETRA:DHL.DE) announced on April 7 that it is investing €2 billion over the next five years to strengthen its healthcare and life sciences logistics. The company plans to expand cold chain capacity, build new pharma hubs, and upgrade tech for better visibility and reliability. Through its new brand, DHL Health Logistics, and the recent acquisition of CRYOPDP, the company aims to support faster, safer delivery of critical treatments like biopharma and cell therapies. With this move, DHL plans to double its healthcare revenue to €10 billion by 2030 and stay ahead in patient-focused logistics.
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.
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.
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.
1. Mercedes-Benz Group AG (XETRA:MBG.DE)
Dividend Yield as of April 21: 8.56%
Mercedes-Benz Group AG (XETRA:MBG.DE) tops our list of the best German dividend stocks to buy. Based in Stuttgart, Germany, Mercedes-Benz is a global automotive company specializing in premium cars, vans, and mobility services. It operates under brands like Mercedes-Benz, AMG, Maybach, and G-Class.
On April 17, RBC Capital Markets maintained an Outperform rating on Mercedes-Benz Group AG (XETRA:MBG.DE) but trimmed the price target from €79 to €73. RBC Capital expects tariffs to lower Mercedes-Benz’s EBIT by 8% and has cut its price target. Despite this, the stock is considered undervalued, with a potential 24% upside. The company’s strong shareholder returns of 13-14% via dividends and buybacks support RBC’s Outperform rating.
Mercedes-Benz Group AG (XETRA:MBG.DE) announced on April 3 that it is investing several hundred million euros to build a new eco-friendly Next Generation Paintshop at its Sindelfingen site, set to open in 2028. The new facility will run entirely on renewable energy, cut energy use by half, and recycle water and materials. It is being built in partnership with Dürr Systems and will be equipped with smart tech like AI monitoring and a digital twin to speed up construction and ramp-up.
In 2024, Mercedes-Benz Cars sold 1.98 million vehicles, matching the previous year, with strong Q4 sales driven by demand in Germany, China, and the United States. Top-End model sales rose 34% in Q4, led by the G-Class and AMG models, but annual sales fell slightly to 281,500 units due to weak EV demand and challenges in China. The S-Class maintained a 50% market share in its segment. Core segment sales grew 6% to 1.17 million units, supported by strong E-Class and GLC demand.
Overall, Mercedes-Benz Group AG (XETRA:MBG.DE) ranks first on our list of the best German dividend stocks. While we acknowledge the potential of German stocks as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than MBG but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the dirt cheap dividend stock.
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