8 Best German Dividend Stocks To Invest In

2. Mercedes-Benz Group AG (XETRA:MBG.DE)

Dividend Yield as of December 27: 9.92%

Mercedes-Benz Group AG (XETRA:MBG.DE), headquartered in Stuttgart, Germany, develops, manufactures, and sells cars and vans under brands like Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, and G-Class. It also offers spare parts, financing, leasing, rentals, fleet management, insurance, and digital services for charging and payments. With an impressive dividend yield of 9.92% as of December 27, Mercedes-Benz Group AG (XETRA:MBG.DE) is one of the best German dividend stocks to buy.

Mercedes-Benz Group AG (XETRA:MBG.DE) reported revenue of €107,144 million for the first nine months of 2024, slightly below the €112,414 million from the prior year, due to lower unit sales, an unfavorable market mix, negative pricing, and exchange rate effects. In February 2024, the company announced a share buyback policy, allocating free cash flow beyond a 40% dividend payout to fund share buybacks. A €3 billion buyback program began in May 2024, following the completion of a €4 billion program in August 2024. The current program is expected to finish by Q1 2025, with future buybacks subject to corporate approvals.

At its Annual General Meeting on May 8, 2024, Mercedes-Benz Group AG (XETRA:MBG.DE) approved a dividend of €5.30 per share for 2023, up from €5.20 in 2022. The total payout for 2023 amounted to €5.5 billion, slightly below the €5.6 billion distributed in 2022.