The best undervalued dividend stocks in the Morningstar Germany Dividend Yield Focus Index

The best undervalued dividend stocks in the Morningstar Germany Dividend Yield Focus Index

According to a report by www.wallstreet-online.de, Morningstar strategists advise investors to look for stocks with long-term stable dividends and to buy them if they are undervalued. When purchasing dividend stocks and looking for yield, it is very important to be selective in order to avoid problematic areas and “dividend traps.” Companies with attractive returns that are not sustainable pose a threat.

Morningstar DividendInvestor's David Harrell recommends focusing on companies with supportive management teams for their dividend strategies and those with competitive advantages. Quality companies offer financial stability and price risk is reduced if these stocks can be purchased at a cheap price.

The Morningstar Germany Dividend Yield Focus Index identified the ten best German dividend stocks in mid-November. The stocks on this list are undervalued and have been trading in the 4- and 5-star range. These are: BMW, Deutsche Telekom, DHL Group, Deutsche Börse, Henkel AG, MTU, GEA Group and Hugo Boss.

The impact of this valuation on the market could lead investors to invest more in these undervalued, high-quality dividend stocks, which could lead to an increase in demand and therefore an increase in share prices. This could also have a positive impact on the industry as a whole by increasing awareness of the importance of stable dividends and long-term value retention.