8 Best German Dividend Stocks To Invest In

5. Deutsche Post AG (XETRA:DHL.DE)

Dividend Yield as of December 27: 5.50%

Deutsche Post AG (XETRA:DHL.DE) is a global mail and logistics provider with operations in Europe, the Americas, Asia Pacific, the Middle East, and Africa. It provides express courier services, freight solutions via air, sea, and land, tailored logistics and supply chain solutions, parcel delivery, cross-border services, and mail communications. Established in 1995, Deutsche Post AG (XETRA:DHL.DE) is based in Bonn, Germany. In October 2024, the Universal Postal Union recognized Deutsche Post, along with Swiss Post, as the top postal service provider worldwide. This conclusion comes from the UN’s annual study, which evaluates the performance and progress of 174 postal operators globally.

Deutsche Post AG (XETRA:DHL.DE)’s Q3 2024 results met expectations, with EBIT flat year-on-year, an improvement from the 20% decline in Q1 and Q2. B2C parcel markets are ramping up seasonally, but B2B volumes remain subdued, particularly in Europe, due to the macroeconomic environment. Express showed slight EBIT growth and solid margins, while DGFF and P&P Germany faced challenges. The company revised its 2024 EBIT forecast to >€5.8 billion and adjusted its mid-term growth expectation for 2026 EBIT to >€7.0 billion.

Deutsche Post AG (XETRA:DHL.DE) has revised its FY 2024 capex guidance to €3.0-3.2 billion and free cash flow guidance to €2.8-3.0 billion, supporting dividend continuity and the share buyback program. The firm remains committed to paying 40%-60% of net profit as dividends, ensuring next year’s payout matches this year’s. The current share buyback plan will be concluded by year-end. DHL is one of the best German dividend stocks for an income portfolio.