In this post, we will have a look at the dividend-paying stocks which are a member DAX. The DAX is one of the major European indexes and comprised of the 30 largest and most traded companies in Germany. It represents around 80 percent of the market capitalization of listed stock corporations in Germany.
For non-European investors, it is important to know that dividends are somewhat different than in the US. Dividend pay-outs (ex-dividend) are often once per year in April or May. Unlike the US dividend aristocrats, it is also not common to increase the dividend year by year. Only one stock as part of the DAX-index managed to increase the dividend payout for 25 consecutive years in 2019.
There are several angles to define “best” DAX Dividend Stocks, especially given the fluctuations in yearly dividends. The first angle, we took is the dividend history.
DAX Stocks Dividend History
When an investor is looking for dividend aristocrats stocks in the DAX, they will only find one “pure” dividend aristocrat. The dividend stock Fresenius (FRE.XETRA) is the only stock that managed to increase its dividends for 26 consecutive years.
The table below lists all DAX stocks including their dividend paid per year and the number of consecutive dividend increases since 2010. The colors indicate whether the dividend increased, was stable or decreased compared to the previous year.
9 of 30 DAX stocks did lower their yearly dividend for one or more years. Seven stocks managed to increase their dividends for 9 consecutive years or more.
Please note that Linde PLC (LIN) is also listed in the US and based on the S&P-rules a dividend aristocrat given the merge with Praxair.
DAX stocks by Dividend Yield
The second angle is the dividend yield. The current average dividend yield is 2.95% for all DAX stocks. The table below lists the company, its last price (24-Jan-2020), current annual dividend and dividend yield, and also the annual shareholders meeting.
DAX stocks by Dividend Growth
The third angle is dividend growth. The average dividend growth is around 10% for all DAX stocks. The table below lists the company and the dividend growth percentage of the last year (2019-2018).
Members can use the DAX-screener.
More information on the DAX-index and a downloadable excel are available to everyone in our post on the DAX-index.
Other Sources of Dividend Investment Ideas
The Dividend Aristocrats list is not the only way to quickly screen for businesses that regularly pay rising dividends.
- The Dividend Kings List is even more exclusive than the Dividend Aristocrats. It is comprised of less than 20 businesses with 50+ years of consecutive dividend increases.
- The MoneyInvestExpert Defensive Aristocrats is a performance-based top-10 selection of the Dividend Aristocrats to outperform the market on the long-term.
- Portfolio lists like the Berkshire Hathaway Portfolio or Bill Gates’stock portfolio can be a source.
- For the European focused investors there is also the list of European Dividend Aristocrats.
- Dividend Champions are not necessarily members of the S&P 500 index, have increased their dividend for 25 or more consecutive years.
- 100+ years of dividend, the list of stocks that pay over 100 year of dividend can be an list of inspiration.
Next to selecting the right dividend stocks, important principles for successful long-term investing are Disciple, Diversification, Defensive & indeed Dividend. Read more about this in our free e-book.
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