Top German Dividend Stocks To Consider In July 2024 (2024)

As of July 2024, Germany's market is showing resilience with the DAX index gaining 1.35%, reflecting investor optimism amid a broader European economic context marked by potential monetary easing. This positive momentum in Germany contrasts with mixed performances in other major global markets, highlighting its relative stability. In such a market environment, dividend stocks can be particularly appealing for those seeking steady income streams from their investments, especially when considering the current economic indicators and monetary policies that favor long-term investment strategies.

Top 10 Dividend Stocks In Germany

Click here to see the full list of 30 stocks from our Top German Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

CR Energy

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

Overview: CR Energy AG is an investment company that focuses on technology companies in Germany, with a market capitalization of approximately €147.71 million.

Operations: CR Energy AG generates €68.57 million from its real estate rental segment.

Dividend Yield: 10%

CR Energy AG, with a dividend yield of 9.95%, ranks in the top 25% of German dividend payers. Despite a recent revenue drop to €68.64 million and net income fall to €65.78 million in 2023, dividends appear sustainable with a low payout ratio of 22.4% and are well-covered by cash flows at a cash payout ratio of 62.6%. However, the company's short dividend history and past shareholder dilution may raise concerns about long-term stability and growth potential in dividends.

• Delve into the full analysis dividend report here for a deeper understanding of CR Energy.

• Insights from our recent valuation report point to the potential undervaluation of CR Energy shares in the market.

OVB Holding

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

Overview: OVB Holding AG operates in Europe, offering advisory and brokerage services to private households, with a market capitalization of approximately €267.92 million.

Operations: OVB Holding AG generates its revenue primarily from insurance brokerage, with a segment total of €368.28 million.

Dividend Yield: 4.8%

OVB Holding offers a dividend yield of 4.79%, placing it among the top 25% in the German market. Despite this, its dividends are under pressure with a cash payout ratio of 107.3%, indicating that current payments aren't well supported by free cash flows. However, earnings have shown growth, increasing by 20.5% last year and projected to rise by 5.31% annually. Trading at an attractive valuation, OVB is priced 18.4% below estimated fair value, yet concerns about dividend sustainability persist due to coverage issues.

• Dive into the specifics of OVB Holding here with our thorough dividend report.

• According our valuation report, there's an indication that OVB Holding's share price might be on the expensive side.

ProCredit Holding

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

Overview: ProCredit Holding AG operates as a commercial bank offering services to small and medium enterprises and private customers across Europe, South America, and Germany, with a market capitalization of approximately €500.64 million.

Operations: ProCredit Holding AG generates its revenue primarily through banking services, totaling €414.42 million.

Dividend Yield: 7.5%

ProCredit Holding reported a net income increase to €33.5 million in Q1 2024, up from €29.5 million the previous year, signaling strong earnings growth. Despite this, its dividend history is less stable, having paid dividends for only seven years with fluctuating payments. The current dividend coverage by earnings stands at 32.1%, projected to slightly improve to 37.4% in three years. However, the company's high bad loans ratio at 2.4% raises concerns about financial health amidst its competitive yield of 7.53%.

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

• Upon reviewing our latest valuation report, ProCredit Holding's share price might be too pessimistic.

Where To Now?

• Unlock more gems! Our Top German Dividend Stocks screener has unearthed 27 more companies for you to explore.Click here to unveil our expertly curated list of 30 Top German Dividend Stocks.

• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.

• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Curious About Other Options?

• 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:CRZK XTRA:O4B and XTRA:PCZ.

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