Potential dividend cuts in 2024: risk factors for DAX stocks

Potential dividend cuts in 2024: risk factors for DAX stocks

According to a report by www.boerse-online.de, the risk of a dividend cut for some DAX companies increases significantly. This could have serious implications for the market, consumers and the industry. Such a cut is often a sign that a company is not doing well and usually leads to sales. Statistically speaking, companies that cut their dividends are significant underperformers.

The German Vonovia, with a current dividend yield of 5.07 percent, has made operational progress and secured financing until 2025. Nevertheless, if interest rates remain high for a longer period of time, the risk of a dividend cut could increase. At Bayer, with a current dividend yield of 5.87 percent, there is the potential for a dividend cut due to massive debt and poor operational results, possibly as part of a split. The chemical group BASF, with a current dividend yield of 7.52 percent, could also be burdened by energy prices that do not fall, which could lead to a foreseeable cut. This could even take place relatively soon after CEO Brudermüller leaves office or his successor takes office next year.

It is therefore important to consider the risk of dividend cuts when selecting stocks so that potential candidates for cuts do not end up in the portfolio. This information is particularly relevant for investors who rely on stable dividend stocks. Overall, the analysis suggests that investors considering investing in DAX stocks should closely monitor the current developments of the companies mentioned, as they could potentially have higher financial risks.