Three German DAX Stocks With A Safe Yield Over 4%

First of all i apologize for upcoming language failures. English is not my native language. I present you here three stocks of the main German industrial Index DAX. The three stocks have a yield over 4% and have not reduced dividends for a minimum of 10 years…
For dividend growth investors it is important to know that the most German companies only pay dividends once a year. Normally dividends are paid one day after the annual shareholders meeting.

For US Investors in German companies taxation is as follows. The German State keeps back 26,375 % of the dividend. As US investor you can get back 11,375% of the tax of Germany because of a treaty between the US and Germany. So u come to an amount eligible for US Foreign Tax Credit of 15%. I don t know the situation with ADRs of German companies.

Here are the three stocks…

  • Deutsche Börse AG ( ISIN DE0005810055 ) is the operator of the biggest stock exchange in Germany. It operates the famous Frankfurt Stock Exchange and the electronic stock exchange XETRA. Deutsche Börse AG this year pays a dividend of 3,30 € ( yield 7,25% ). Ex-Dividend Date is the 16th May. Of the 3,30 € Dividend 1 € is an special payment that is a one time event. So the regular dividend yield is 5,08%. The dividend pay-out ratio is 50,33%. The 5-year average Dividend Growth is 4,71%.
  • Munich RE AG ( ISIN DE0008430026 ). Munich Re is one of the worlds biggest reinsurance companies. Warren Buffett bought more than 10 % of Munich Re over the last years. Munich Re has an dividend yield of 5,84%. The dividend pay out ratio for the fiscal year 2012 is very high at 158,63%. But this high dividend payout is an one time event, concluding of the nature catastrophe in Japan and other pacific countries last year. Normally the payout ratio is about 50 to 60%. The 5-year average Dividend Growth is 7,09%.Next ex-dividend date is April 2013.
  • Siemens AG ( DE0007236101 ). Siemens AG is an electronic giant similar to General Electric. Siemens produces a wide range of products from trains to toasters. Siemens has an dividend yield of 4,43 %. The dividend-pay-out ratio is 38,81%. The 5-year average Dividend Growth is 18,04%. Next ex-dividend date is January 2013.

So maybe u can get some of these great stocks for your dividend portfolio. The Price-Earning Ratios are low. Siemens P/E is 11,43. Deutsche Börse P/E is 9,92 and Munich Re has an upcoming P/E of 7,44. Munich Re also trades under book value.

Also I wish u all good luck with your dividend stocks.

2 Gedanken zu “Three German DAX Stocks With A Safe Yield Over 4%

  1. Hello Ulrich,

    its very nice to see that you are blogging in english too! I wish you all the best and I hope you will gain lots of english speaking readers AND show them the beautiful sides of German securities.



  2. Deutsche Börse AG ist einer meiner Lieblings-deutsche Aktien. Es ist eine internationale Finanzmarkt-Operator. Er arbeitet mit seinen fünf Geschäftsfeldern: Xetra, Eurex, Clearstream und Market Data & Analytics.

    deutsche Dividenden

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