8 Best German Dividend Stocks To Invest In

3. BASF SE (XETRA:BAS.DE)

Dividend Yield as of December 27: 7.99%

BASF SE (XETRA:BAS.DE), founded in 1865 and headquartered in Ludwigshafen, Germany, is a global chemical company operating in six segments – Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. BASF SE (XETRA:BAS.DE) provides petrochemicals, advanced materials, additives, coatings, crop protection products, and digital farming tools, serving industries like automotive, electronics, and consumer goods. The company also engages in engineering, leasing, and commodity trading.

BASF SE (XETRA:BAS.DE) reported sales of €15,739 million in Q3 2024, on par with the previous year. Growth in volumes across core segments like Chemicals, Materials, Industrial Solutions, Nutrition & Care, and Agricultural Solutions drove sales, while Surface Technologies saw a decline due to weak automotive demand. Sales were negatively impacted by currency effects, particularly from the Argentine peso and Brazilian real, and lower prices in most segments, especially for metals in Surface Technologies. The Chemicals segment performed well, with strong sales in Petrochemicals driven by higher prices in the propylene value chain, although competition-led price reductions in Intermediates partially offset these gains.

BASF SE (XETRA:BAS.DE) targets an EBITDA of €10-12 billion and a free cash flow of over €12 billion by 2028, with a 10% ROCE. It plans to distribute €12 billion to shareholders from 2025 to 2028, including annual dividends of at least €2.25 per share and €4 billion in share buybacks starting by 2027. It is one of the best German dividend stocks to invest in.