Existing: Corporations increase dividends: 61 billion for shareholders

Despite the economic crisis, the large stock market companies in Germany increase their dividends. In the current year, companies from the guiding index DAX and the MDAX medium value index will pay around 61 billion euros to its shareholders, DZ Bank calculated in a new study. “This is only a billion more than in the previous year-but a very robust result due to the US customs policy and the local economic weakness,” writes analyst Stephen Schneider.

However, only 40 percent of a total of 90 corporations from the two indices increase their dividends for the past financial year. In the previous dividend season, which begins with the general meetings in spring, almost two thirds of the companies had raised their profit distributions.

Car manufacturers shorten dividends

Above all, the carmaker’s crisis presses the balance. The industry delivers the lion’s share in the dividend overall with a good fifth (22.4 percent), but in 2024 it was still 28 percent. BMW, VW and Mercedes-Benz have cut their dividends vigorously. The industrial sector follows the car industry with a share of a good 20 percent and insurance with a good 17 percent.

According to the study by the insurer Allianz, the highest dividend amount will release almost 6 billion euros, followed by Deutsche Telekom with 4.41 billion and Mercedes-Benz with 4.14 billion. Siemens, VW and SAP come behind.

Dividends in shareholders in demand

With dividends, listed corporations share their shareholders in the business success. The German economy is in crisis, but the corporations from the DAX make large parts of their sales abroad. In Germany, dividends are usually paid once a year after the general meeting. Many investors value the profit distributions as additional income. Studies show that dividends contribute to the overall return of shares in the long term.