3 High-Performing German Dividend Stocks Yielding From 3% to 6.5%

As the Eurozone emerges from a recession, with Germany's DAX index showing recent fluctuations, investors may find opportunities in high-performing German dividend stocks. Amidst this economic backdrop, understanding the attributes of resilient and high-yielding stocks can be crucial for those looking to enhance their portfolios in a recovering market.

Top 10 Dividend Stocks In Germany

Click here to see the full list of 29 stocks from our Top Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Heidelberg Materials

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Heidelberg Materials AG operates globally, producing and distributing cement, aggregates, ready-mixed concrete, and asphalt, with a market capitalization of approximately €17.90 billion.

Operations: Heidelberg Materials AG generates its revenue primarily through three segments: cement (€11.21 billion), aggregates (€4.88 billion), and ready-mixed concrete-asphalt (€5.90 billion).

Dividend Yield: 3.1%

Heidelberg Materials AG has demonstrated a mixed performance in its dividend history, with payments showing volatility over the past decade. Despite this, dividends are well-supported by both earnings and cash flows, with payout ratios of 27.3% and 29.1% respectively. However, its dividend yield of 3.05% is below the top quartile in the German market at 4.61%. The company's earnings have seen significant growth of 26.6% over the past year and are projected to grow further at an annual rate of 4.34%. Additionally, Heidelberg Materials is trading at a substantial discount to estimated fair value, suggesting potential undervaluation relative to intrinsic worth.

• Get an in-depth perspective on Heidelberg Materials' performance by reading our dividend report here.

• Our expertly prepared valuation report Heidelberg Materials implies its share price may be lower than expected.

INDUS Holding

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: INDUS Holding AG is a private equity firm that specializes in mergers, acquisitions, and corporate spin-offs, with a market capitalization of approximately €0.71 billion.

Operations: INDUS Holding AG generates its revenue primarily through three segments: Materials (€619.94 million), Engineering (€601.77 million), and Infrastructure (€582.29 million).

Dividend Yield: 4.5%

INDUS Holding AG has shown improvement with a net income of €55.44 million in 2023, recovering from a previous loss, and sales stable at €1.81 billion. While its dividend yield of 4.52% is slightly below the top German dividend payers, the dividends are well-covered by earnings and cash flows with payout ratios of 38.8% and 24.6%, respectively. Despite this coverage, the company's history of dividend payments has been inconsistent over the past decade, reflecting some risk in its dividend reliability amidst a high debt level.

• Navigate through the intricacies of INDUS Holding with our comprehensive dividend report here.

• The analysis detailed in our INDUS Holding valuation report hints at an deflated share price compared to its estimated value.

Wacker Neuson

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Wacker Neuson SE, with a market capitalization of €1.20 billion, is engaged in the manufacturing and distribution of light and compact equipment across Germany, Austria, the United States, and other international markets.

Operations: Wacker Neuson SE generates its revenue through the production and sale of light and compact equipment across key markets including Germany, Austria, the United States, and various international locations.

Dividend Yield: 6.5%

Wacker Neuson SE offers a high dividend yield at 6.5%, ranking in the top 25% of German dividend stocks, yet its sustainability is questionable as dividends are not well covered by earnings or cash flows. Recent financials show a downturn with Q1 sales dropping to €593.1 million from €667.2 million year-over-year and net income falling to €23.3 million from €62.4 million, indicating potential pressure on future payouts despite a current payout ratio of 53.4%.

• Click here to discover the nuances of Wacker Neuson with our detailed analytical dividend report.

• According our valuation report, there's an indication that Wacker Neuson's share price might be on the cheaper side.

Key Takeaways

• Click this link to deep-dive into the 29 companies within our Top Dividend Stocks screener.

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Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include XTRA:HEI XTRA:INH and XTRA:WAC.

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