▷ Plenty of money for shareholders / Commentary on dividend development by Werner Rüppel


14.01.2022 – 19:05

Stock exchanges newspaper

Frankfurt/Main (ots)

The best time for shareholders will begin in just a few weeks. Because in the dividend season, investors can regularly fill their wallets well. This year, European and German stocks, especially Dax stocks, are particularly attractive: Because while more and more interest savers also have to shell out custody fees for their hard-earned pennies, shareholders are benefiting from sharply increasing dividends.

Strategist Andreas Hürkamp from Commerzbank has calculated that the Dax titles will pay out a total dividend of EUR 46.4 billion this year. Deka is also forecasting a massive increase in Dax dividends to a record level of EUR 46.5 billion. The dividend yield of the Dax is 2.7%, which Hürkamp and other strategists classify as “attractive” in the current environment of zero interest rates.

Against the background of the economic recovery and sharply rising corporate profits in the past year, the Dax dividend total has climbed by an “impressive” 37%, according to Hürkamp. Even after adjusting for the ten new Dax members, the dividend growth is a whopping 29%.

Good news from DWS

One good message follows the other for shareholders in this country. Because a growing number of companies are announcing rising profits and higher dividends for the past year. The asset manager DWS Group, which is represented in the SDax, has just reported higher profits and an increase in the dividend to EUR 2 per share, so that the Deutsche Bank subsidiary currently has a whopping dividend yield of 5.1%. As early as February, Siemens shareholders can look forward to a payout that has been increased to EUR 4 per share. And Deutsche Beteiligungs AG, which also pays dividends in February (the general meeting will be held on February 17), has doubled its dividend to EUR 1.60 per share. Steady and bountiful dividend-payer Allianz (with a handsome dividend yield of around 4.7%) has already announced that it will spoil its shareholders with a dividend increase of at least 5% per year. In general, a growing number of companies in this country offer stable and often increasing dividends, so that it is particularly worthwhile to be a long-term shareholder.

And the current dividend yields of quality companies such as BASF, Deutsche Telekom or Vonovia are also quite generous at around 5%, 4% or 3.9%. Even a growth stock like Deutsche Post has a dividend yield of 3.2%, making some investors wonder if this stock is a better investment compared to a highly valued growth stock like Amazon.

According to Hürkamp’s calculations, 31 out of 40 Dax stocks are likely to pay out a higher dividend in the current season than in the previous year. 14 companies currently offer a dividend yield of more than 3%. And the good news for shareholders continues. Not least against the background of rising corporate profits, the distributions would have to increase further. Deka is forecasting record dividend payments for the Dax of around EUR 50 and 53 billion for 2023 and 2024, respectively.

But it won’t be really lucrative for shareholders in February. Only in April and May do the large German stock corporations such as Daimler, BASF, Allianz, Munich Re, SAP, Deutsche Telekom, Deutsche Post and Volkswagen pay out lavish dividends. But the capital market is looking ahead, and studies show that high-dividend stocks are particularly in demand in the weeks leading up to their payouts. All in all, according to Hürkamp, ​​the lavish dividends should mean that the Dax performance index will continue its upward trend in the current year.

(Börsen-Zeitung, 01/15/2022)

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