This article presents an overview of the 5 Best German Dividend Stocks. For a detailed overview of such stocks, read our article, 12 Best German Dividend Stocks.
5. Volkswagen Pfd (XETRA:VOW3)
Dividend Yield: 7%
Wolfsburg, Germany-based car company Volkswagen Pfd (XETRA:VOW3) is another high-yield dividend stock in our list of the best German dividend stock. According to Yahoo Finance data the stock’s dividend yield as of January 12 was around 7%.
In November last year Volkswagen Pfd (XETRA:VOW3) warned that layoffs and brand changes might be coming as Volkswagen Pfd (XETRA:VOW3) planned to cut costs amid lackluster EV sales.
4. BASF SE (ETR:BAS)
Dividend Yield: 7.5%
BASF SE (ETR:BAS) ranks fourth in our list of the best German dividend stocks to buy now. The stock has a dividend yield of about 7.5% as of January 11.
In November 2023, JPMorgan published a list of its top European stock picks. BASF SE (ETR:BAS) made it to the list as JPMorgan highlighted BASF SE’s (ETR:BAS) dividend and market cap for ranking.
3. Bayerische Motoren Werke ADR (OTC:BMWYY)
Dividend Yield: 8%
Munich, Germany-based luxury car company Bayerische Motoren Werke ADR (OTC:BMWYY) ranks third in our list of the best German dividend stocks to buy now, with a dividend yield of about over 8%.
In November Bayerische Motoren Werke ADR (OTC:BMWYY) posted third quarter results. GAAP EPS in the third quarter came in at €4.20. Revenue in the period jumped about 3.4% year over year to €38.46 billion.
2. Mercedes Benz Group ADR (XETRA:MBGYY)
Dividend Yield: 8%
German automotive giant Mercedes Benz Group ADR (XETRA:MBGYY) ranks second in our list of the best German dividend stocks to buy now. Mercedes Benz Group ADR (XETRA:MBGYY) has a dividend yield of over 8% as of January 11 according to Yahoo Finance data.
In November last year, Mercedes Benz Group ADR (XETRA:MBGYY) opened its first dedicated EV charging station hub in North America in Atlanta.
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.
