Is Deutsche Post AG (DHL.DE) a Good German Dividend Stock to Invest In Now?

Supporting this outlook, dividends are emerging as a key contributor to European equity returns. For European companies, the average yield was 3.47% at the end of 2023 and it was projected to increase to 3.67% in 2024, remaining higher than long-term German government bond yields despite their significant rise in 2022. German companies reported a 3.3% dividend yield in 2023, which was expected to grow to 3.53% in 2024. The Allianz Global Investors Dividend Study highlighted the significance of dividends in equity investment returns. Over the past 40 years, dividends have accounted for nearly 36% of the annualized total return of European equities.

Our Methodology

For this article, we used the iShares DivDAX® UCITS ETF (DE) to filter out German dividend stocks. The ETF aims to replicate the performance of an index comprising 15 high dividend yield stocks selected from the 30 largest and most actively traded companies on the Frankfurt Stock Exchange’s Prime Standard segment. From this fund, we focused on picking prominent stocks with stable yields and strong dividend policies. The list below is ranked in the ascending order of dividend yield as of December 27.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)

A fleet of rented trucks parked alongside a warehouse, emphasizing the company's logistics services.

Deutsche Post AG (XETRA:DHL.DE)

Dividend Yield as of December 27: 5.50%

Deutsche Post AG (XETRA:DHL.DE) is a global mail and logistics provider with operations in Europe, the Americas, Asia Pacific, the Middle East, and Africa. It provides express courier services, freight solutions via air, sea, and land, tailored logistics and supply chain solutions, parcel delivery, cross-border services, and mail communications. Established in 1995, Deutsche Post AG (XETRA:DHL.DE) is based in Bonn, Germany. In October 2024, the Universal Postal Union recognized Deutsche Post, along with Swiss Post, as the top postal service provider worldwide. This conclusion comes from the UN's annual study, which evaluates the performance and progress of 174 postal operators globally.

Deutsche Post AG (XETRA:DHL.DE)’s Q3 2024 results met expectations, with EBIT flat year-on-year, an improvement from the 20% decline in Q1 and Q2. B2C parcel markets are ramping up seasonally, but B2B volumes remain subdued, particularly in Europe, due to the macroeconomic environment. Express showed slight EBIT growth and solid margins, while DGFF and P&P Germany faced challenges. The company revised its 2024 EBIT forecast to >€5.8 billion and adjusted its mid-term growth expectation for 2026 EBIT to >€7.0 billion.

Deutsche Post AG (XETRA:DHL.DE) has revised its FY 2024 capex guidance to €3.0-3.2 billion and free cash flow guidance to €2.8-3.0 billion, supporting dividend continuity and the share buyback program. The firm remains committed to paying 40%-60% of net profit as dividends, ensuring next year’s payout matches this year’s. The current share buyback plan will be concluded by year-end. DHL is one of the best German dividend stocks for an income portfolio.

Overall DHL.DE ranks 5th on our list of the best German dividend stocks to invest in. While we acknowledge the potential of DHL.DE as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DHL.DE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Is Allianz SE (ALV.DE) a Good German Dividend Stock to Invest In Now?
Supporting this outlook, dividends are emerging as a key contributor to European equity returns. For European companies, the average yield was 3.47% at the end of 2023 and it was projected to increase to 3.67% in 2024, remaining higher than long-term German government bond yields despite their significant rise in 2022. German companies reported a 3.3% dividend yield in 2023, which was expected to grow to 3.53% in 2024. The Allianz Global Investors Dividend Study highlighted the significance of dividends in equity investment returns. Over the past 40 years, dividends have accounted for nearly 36% of the annualized total return of European equities.

Our Methodology

For this article, we used the iShares DivDAX® UCITS ETF (DE) to filter out German dividend stocks. The ETF aims to replicate the performance of an index comprising 15 high dividend yield stocks selected from the 30 largest and most actively traded companies on the Frankfurt Stock Exchange’s Prime Standard segment. From this fund, we focused on picking prominent stocks with stable yields and strong dividend policies. The list below is ranked in the ascending order of dividend yield as of December 27.

At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)

A professional-looking businessperson in a modern office building, discussing a strategy to drive the company's reinsurance business.

Allianz SE (XETRA:ALV.DE)

Dividend Yield as of December 27: 4.68%

Allianz SE (XETRA:ALV.DE) is a global company based in Munich, Germany, specializing in insurance and asset management services. Allianz SE (XETRA:ALV.DE) offers diverse services – property-casualty insurance for individuals and businesses, life/health insurance covering life plans and health benefits, asset management for institutional and retail investors, and banking and digital investment solutions through its corporate segment.

Sanlam, a South African financial group, and Allianz SE (XETRA:ALV.DE) formed a joint venture, Sanlam Allianz Africa (SanlamAllianz), in September 2023 for their African operations. Sanlam Emerging Markets (SEM) has agreed to sell 8.59% of its share to Allianz Europe BV for R4.5 billion, resulting in SEM holding 51% and Allianz BV 49%. The deal is subject to regulatory approvals and adjustments based on 2024 financials.

In Q3 2024, Allianz SE (XETRA:ALV.DE) reported strong financial growth, with total business volume rising 17.3% to €42.8 billion and operating profit increasing 13.6% to €3.9 billion, driven by strong results in the Property-Casualty segment. Shareholders' core net income grew by 23% to €2.5 billion. Based on its robust performance, Allianz SE (XETRA:ALV.DE) expects 2024 operating profit to reach the upper half of its €14.8 billion ± €1 billion target range. Additionally, a €1.5 billion share buyback program was completed by October 2024.

Allianz SE (XETRA:ALV.DE), known for its high dividends in the DAX, has increased its dividend by an average of 10% annually over the past decade, reaching €13.80. On December 9, 2024, the company expanded its Dividend Policy into a broader Capital Management Policy, based on net income and capitalization needs. The policy ensures a 60% payout of net income (adjusted for extraordinary items), maintains a dividend per share at least equal to the previous year’s amount, and commits to returning at least 15% of net income to shareholders through share buybacks from 2025-2027. Allianz is one of the best German dividend stocks to buy, with a dividend yield of 4.68% as of December 27.

Overall ALV.DE ranks 6th on our list of the best German dividend stocks to invest in. While we acknowledge the potential of ALV.DE as an investment, our conviction lies in the belief that certain AI stocks hold greater promise