According to a study, investors can expect record dividends from German stock exchange groups. The DZ Bank estimates in its study that the 100 largest stock exchange companies are likely to pay out around 62 billion euros for the past financial year. Despite all the crises, this is a new record and an increase of around ten percent compared to the previous year. According to the information, the previous record amount for the 2021 financial year was 56.5 billion euros.
The lion’s share of dividend payments is again controlled by the auto industry with 28 percent, ahead of the industrial sector with almost 15 percent and the insurance industry with 12 percent, it said. Insurance companies thus pushed the chemical industry, which is struggling with the energy crisis, out of third place. The average dividend yield, i.e. the share of the distribution in the stock market price, is 3.5 percent in the leading index Dax and thus roughly in the long-term average.
According to the study, the dividend king remains the Mercedes-Benz Group with a profit distribution of 5.6 billion euros, followed by the competitor BMW (5.1 billion) and the insurance group Allianz (4.6 billion). In fourth and fifth place were Volkswagen (4.3 billion) and Deutsche Telekom (3.5 billion).
Dividends are important to investors because they make a significant contribution to total returns in the stock market. The dividends are paid after the annual general meetings, which are mainly held in the spring. Many DAX companies achieved record profits in 2022 despite expensive energy, high inflation and a weak economy.
