Dividend strength: This is how investors will benefit from top German stocks in 2024

Dividend strength: This is how investors will benefit from top German stocks in 2024

According to a report by www.deraktionaer.de,

Dividends play a crucial role in the stock market's earning potential. According to an analysis by Dekabank, shareholders of German corporations can expect a record amount of dividends this year. The 40 companies in the German stock index are expected to pay out a total of 54.6 billion euros, which would exceed the previous year's figure by 1.6 billion euros. Despite the sluggish economy and geopolitical trouble spots, companies have managed to keep their profits at a high level.

It is expected that 26 of the 40 companies will increase their dividends per share compared to the previous year, while 11 companies are expected to keep their dividends unchanged. Only Bayer, BMW and Fresenius paid out less money to shareholders than in the previous year. The three major car manufacturers BMW, Mercedes and VW alone pay out around a quarter of the total dividends of all DAX companies. For the current financial year, Dekabank expects a further increase in dividends in the DAX to 58.5 billion euros, based on the international orientation of the companies and the global growth outlook.

These forecasts signal a positive development with regard to dividend distributions by German companies in the DAX. Increased dividend payouts can help boost investor confidence and increase the attractiveness of stocks as a long-term investment option. The increased dividend payouts can also have a positive impact on the stock market by increasing the overall return potential for investors. With regard to the companies mentioned such as Allianz, BASF and Munich Re, this could mean that they continue to be among investors' favorites as high-dividend securities.

It remains to be seen whether the actual dividend distributions will correspond to the forecasts and what further developments will arise with regard to the financial markets. Nevertheless, these calculations show an encouraging picture for shareholders and investors.