8 Best German Dividend Stocks To Invest In

1. Volkswagen AG (XETRA:VOW3.DE)

Dividend Yield as of December 27: 10.20%

Volkswagen AG (XETRA:VOW3.DE), headquartered in Wolfsburg, Germany, manufactures and sells vehicles globally, operating through four segments – Passenger Cars and Light Commercial Vehicles, Commercial Vehicles, Power Engineering, and Financial Services. Volkswagen AG (XETRA:VOW3.DE) develops and produces vehicles, engines, and software, along with motorcycles, trucks, buses, and propulsion components.

In the first nine months of 2024, sales revenue for the group rose slightly to €237.3 billion, up from €235.1 billion in 2023, driven by growth in the Financial Services segment, though automotive sales dipped by 1% due to lower volumes. Operating results fell 21% year-on-year to €12.9 billion, impacted by restructuring costs of €2.2 billion and higher expenses for new products, leading to a margin of 5.4%. Net cash flow in the automotive division decreased by 34% to €3.3 billion, despite solid Q3 performance supported by working capital release. Vehicle sales totaled 6.5 million, down 4%, with growth in North and South America offset by declines in Western Europe and China. Meanwhile, order intake in Western Europe rose 9% year-on-year, with a 27% increase in Q3 due to strong demand for new models.

At its Annual General Meeting, Volkswagen AG (XETRA:VOW3.DE) approved a 2023 dividend increase to €9.00 per ordinary share and €9.06 per preference share, distributing €4.5 billion to shareholders on June 4, 2024. It is one of the best German dividend stocks to buy, ranking 1st on our list due to its impressive yield.

Overall, Volkswagen AG (XETRA:VOW3.DE) ranks first on our list of the best German stocks. While we acknowledge the potential of Volkswagen AG to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Volkswagen AG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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