High Dividend Stocks Germany

List of German high dividend stocks

For investors seeking a reliable income stream, high dividend stocks from German companies present a compelling opportunity. Germany is home to several well-established corporations known for their consistent and generous dividend payouts. These companies are predominantly listed on the Frankfurt Stock Exchange (FSE), the country’s primary exchange. Below, we explore some of the leading German companies recognized for their high dividend yields.

Top high dividend stocks

Metro AG – 12,75%

Ticker: B4B
Metro AG is a leading German wholesale company specializing in the distribution of food and other products to catering companies, independent retailers, and other business customers. Metro AG operates globally and offers a wide range of products, including fresh and shelf-stable foods, non-food products, and various services that support customers’ business activities. The company is best known for its cash-and-carry format, where customers pick up goods themselves from wholesale locations.

Metro AG focuses primarily on the hospitality industry (hotels, restaurants, catering companies) and the retail sector, helping both large and small companies with their purchasing needs. It also offers digitalization solutions, such as online ordering platforms and services that help customers make their own business operations more efficient.

Metro AG is active in more than 30 countries and has thousands of wholesale locations worldwide. The company has a strong position in Europe, but is also active in markets outside Europe, such as Asia. In recent years, Metro has adjusted its business strategy to focus entirely on wholesale activities and has divested itself of other units, such as the Galeria Kaufhof department store chain.

In addition to product distribution, Metro AG attaches great importance to sustainability, with initiatives focused on food waste, energy efficiency and responsible sourcing. The company plays an important role in the global food supply chain and continues to innovate to respond to changing market conditions and the needs of its business customers.

DSW Group – 12,04%

Ticker: DSW
DSW Group in Germany, also known as Deutsche Schutzvereinigung für Wertpapierbesitz e.V. (DSW), is the leading association for private investors in Germany. Founded in 1947, the organization has approximately 30,000 members. DSW’s primary focus is on representing the interests of private investors at general meetings of publicly listed companies, offering legal support, and advocating for investor rights at the political level. They also provide financial education and promote equity culture among individual investors in Germany.

The organization plays an important role in protecting shareholders’ interests, offering services such as proxy voting and advisory on issues like mergers and acquisitions, company delistings, and financial irregularities. DSW has also been involved in high-profile cases like the Wirecard scandal, where they represented affected investors seeking compensation.

DSW continues to foster a culture of investment and financial literacy through seminars and publications aimed at improving the understanding of the stock market among individual investors​

EnviTec Biogas AG – 9,90%

Ticker: ETG
EnviTec Biogas AG is a German company that specializes in the production of biogas and the development of biogas plants. The company operates globally and focuses on sustainable energy solutions by converting organic waste and agricultural materials into biogas, which is then used to generate electricity and heat, or upgraded to biomethane for injection into natural gas grids. Founded in 2002, EnviTec Biogas offers a wide range of services, from planning and constructing biogas plants to providing maintenance and operational support.

The company operates in multiple sectors, including agricultural, industrial, and municipal waste management, contributing to the circular economy by utilizing organic by-products and waste to produce renewable energy. EnviTec also develops and operates its own biogas plants and has expanded into energy trading through its biomethane production.

EnviTec Biogas is focused on innovation in renewable energy, and its biogas systems are seen as a key component in reducing greenhouse gas emissions and fostering sustainable energy production across Europe and beyond. It is listed on the Frankfurt Stock Exchange and continues to grow as part of the renewable energy industry, especially in light of global efforts to transition to greener energy sources.

Volkswagen AG – 9,75%

Ticker: VOW3
Volkswagen AG is one of the world’s largest automotive manufacturers, based in Wolfsburg, Germany. The company produces and sells a wide range of vehicles under various well-known brands, including Volkswagen, Audi, Porsche, Lamborghini, Bentley, SEAT, and Škoda. It is also heavily involved in the development of electric vehicles and sustainable mobility solutions.

Volkswagen was founded in 1937 and became famous for producing the iconic VW Beetle. Over the decades, the company has grown significantly, expanding its brand portfolio and becoming a key player in the global automotive market. Today, Volkswagen Group produces millions of vehicles annually and operates in various markets worldwide.

In recent years, the company has been focused on its “Together – Strategy 2025” initiative, aiming to lead the transition towards electric mobility. Volkswagen has committed to increasing its production of electric vehicles (EVs) and reducing its carbon footprint, investing heavily in new technologies and sustainable manufacturing processes. One of the company’s flagship EV models is the Volkswagen ID.3, part of its broader push into the electric car market.

The group is also engaged in the development of autonomous driving technology and digital services as part of its future mobility strategy, working towards becoming a global leader in connected and self-driving cars.

Schaeffler AG Pref – 9,74%

Ticker: SHA
Schaeffler AG is a German multinational company that specializes in the production of precision components and systems for automotive and industrial applications. Founded in 1946 and headquartered in Herzogenaurach, Germany, Schaeffler is a key player in the global automotive and industrial markets. The company is well-known for manufacturing high-quality bearings, engine components, transmission systems, and chassis parts.

In the automotive sector, Schaeffler provides components for internal combustion engines, hybrid vehicles, and electric cars. It is heavily involved in the development of electric mobility solutions and is focusing on technologies that support the transition to greener transportation. Schaeffler supplies major automakers like BMW, Volkswagen, and Ford.

In the industrial sector, Schaeffler’s products serve various industries, including wind energy, aerospace, railway, and machinery. The company’s portfolio includes ball bearings, roller bearings, and linear motion products, all of which are critical for reducing friction and wear in machines.

Schaeffler is also engaged in innovation and sustainability, investing in the development of digitalization, automation, and renewable energy solutions. The company is making strides in the areas of robotics and smart factories, aligning with the broader trend towards Industry 4.0.

As a family-owned company, Schaeffler is publicly traded and listed on the Frankfurt Stock Exchange. Despite facing challenges in the competitive automotive market, it continues to be a significant player, known for its technological advancements and strong market presence

Complete list

Overview of the German Market

Germany, as Europe’s largest economy, boasts a diverse and robust stock market, with a particular emphasis on industries that have cemented the country’s global economic stature. The German market is characterized by its strong industrial base, where manufacturing, engineering, and technology play pivotal roles. This industrial prowess is reflected in the dominance of sectors such as automotive, chemicals, pharmaceuticals, and finance, all of which are integral to the German economy and offer significant opportunities for investors, particularly those seeking high dividend yields.

The automotive industry is a cornerstone of the German economy, with globally recognized companies like Volkswagen, Daimler (Mercedes-Benz Group), and BMW leading the charge. These companies are not only pillars of German industry but also major players on the world stage, generating substantial revenues from their global operations. The consistent cash flows from these operations enable these companies to regularly distribute significant dividends to their shareholders, making them attractive to income-focused investors.

In addition to automotive giants, Germany is also a leader in the chemicals and pharmaceuticals sectors. Companies such as BASF and Bayer are among the largest and most influential in these industries worldwide. BASF, known as the world’s largest chemical producer, and Bayer, a major force in pharmaceuticals and life sciences, both have long-standing traditions of paying substantial dividends. Their strong market positions and consistent profitability make them reliable choices for those looking to invest in high dividend stocks.

The utilities sector in Germany also presents attractive opportunities for dividend-seeking investors. Companies like RWE and E.ON are key players in the energy market, particularly in the realm of renewable energy. As Germany continues its transition to more sustainable energy sources, these companies have maintained stable dividend payments, supported by the ongoing demand for energy and their strategic importance in the national energy landscape.

Furthermore, the financial services sector in Germany, which includes major banks and insurance companies, offers additional prospects for high dividend investing. Institutions like Deutsche Bank and Allianz are prominent examples. Allianz, in particular, is renowned for its robust dividend policy, bolstered by its position as a global leader in the insurance industry. This stability and commitment to returning profits to shareholders make it a favored choice among dividend investors.

Lastly, the telecommunications sector, represented by companies such as Deutsche Telekom, provides further avenues for stable dividend income. As one of Europe’s largest telecom operators, Deutsche Telekom benefits from a vast customer base and the essential nature of its services, which underpin its ability to offer regular and reliable dividend payments.

Overall, the German market is characterized by a strong presence of well-established companies across various sectors, each offering unique opportunities for high dividend investing. This market diversity, combined with the financial stability and global reach of German corporations, makes Germany an attractive destination for investors seeking both income and long-term growth potential.

Taxation of Dividends in Germany

Understanding the tax implications is crucial for investors in high dividend stocks, particularly in Germany where dividends are subject to specific taxation rules.

Withholding Tax

Germany imposes a withholding tax on dividends at a rate of 26.375% (including the solidarity surcharge). For foreign investors, this tax is automatically deducted from dividend payments. However, many countries have tax treaties with Germany that allow investors to reclaim part of this withholding tax. The process can be complex and often requires filing additional paperwork with the German tax authorities.

Solidarity Surcharge

In addition to the standard withholding tax, dividends are also subject to a solidarity surcharge, which is an additional 5.5% on the withholding tax amount. This results in an effective total tax rate of 26.375% on dividend income.

Tax Treaties

Investors from countries that have tax treaties with Germany may be eligible for a reduced withholding tax rate, typically 15%. The exact rate depends on the specific treaty terms. Investors can claim a refund of the excess withholding tax by submitting the necessary documentation to the German tax authorities.

Net Dividend Yield

After accounting for withholding taxes, investors should calculate the net dividend yield to understand their actual income from the investment. This is especially important for foreign investors who may face additional taxes in their home country.