5 Best German Dividend Stocks

1. Wacker Chemie AG (ETR:WCH)

Dividend Yield: 11%

German chemical company Wacker Chemie AG (ETR:WCH) ranks first in our list of the best German dividend stocks. Earlier this month UBS issued a list of stocks it believes are leaders in Green Technology. Wacker Chemie AG (ETR:WCH) made it to the list. UBS believes Wacker Chemie AG (ETR:WCH) has low valuation and European policies for renewables capacity should benefit Wacker Chemie AG (ETR:WCH).

German chemical company Wacker Chemie AG (ETR:WCH) in October talked about its free cash flow, dividends and other important updates during Q3 earnings call:

“Cash flow from investing activities came in at EUR 550 million, primarily representing investments and M&A as we expand our capabilities and capacities in line with our 2030 strategy. Including the dividend payment of about EUR 600 million in May, we ended the first 9 months with a low net debt of about EUR 160 million. So yes, our investments are high at a time of weak demand. On the one hand, these investments represent decisions taken before the slowdown, but they also include recent decisions. I see this as a clear sign of confidence in our markets. We want to be prepared when market conditions improve and markets pick up. We are completing maintenance today and making the needed investments to support our customers’ growing demand for innovative and sustainable solutions. These new capacities will allow us to service our customers better once demand recovers.”

Wacker Chemie AG’s (ETR:WCH) dividend seems safe due to its decent payout ratio. Wacker Chemie AG (ETR:WCH) has a three-year median payout ratio of 48%.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also look at the 11 Best Foreign Stocks To Buy Now and the Centi-Billionaire Bill Gates’ Top 15 Dividend Stocks.