• Almost all DAX companies pay dividends
• Share buybacks show the economic condition of the DAX companies
• Noticeable upwind
The reporting season is over, the dividend payments after the annual general meetings are due. It is estimated that 6 companies from the DAX, MDAX, TecDax and SDAX paid out less dividends compared to the previous year, 43 kept the dividend at the previous year’s level and 108 companies increased the distribution compared to the previous year – sometimes massively. According to estimates, almost all 40 DAX companies will pay out a dividend in 2022, 24 of them with increases.
The estimated sum of around 46 billion euros in distributions by the DAX companies breaks all records, compared to the previous year an increase of 40 percent. In 2022, many investors will focus on the recovery after the pandemic and the crisis triggered by the Ukraine war. However, the consequences of the Ukraine war for the DAX companies are not yet reflected in the balance sheets for 2021. Analysts from Ernst & Young see exports and involvement in Asia as the main driving factors for the success of DAX companies. In addition to corporate successes, such as increases in efficiency or cost-cutting measures, the size of the DAX is also a decisive factor. Since September 2021, 10 more companies have been listed in the leading German index.
Siemens kicked off the 2022 dividend season with its Annual General Meeting in February (the fiscal year ends at Siemens in September). 3.2 billion euros will be paid out to investors, a new record for the company, Siemens Healthineers will pay its shareholders one yield of 1.69 percent.
The five highest dividend yields
The DAX companies with the highest dividend yields are expected to be: Mercedes-Benz (7.88 percent), BMW (7.34 percent), Covestro (7.45 percent), BASF (6.52 percent) and Allianz (4.95 percent). ).
According to a study by the auditing and consulting company Ernst & Young 2021, car manufacturers were able to record a significantly higher profit margin despite the chip crisis. The German car manufacturers Mercedes-Benz and BMW were only just behind Tesla (12.1 percent) with 12 percent each. Mercedes-Benz (ex-Daimler) is expected to pay a dividend of €5.00 per share, an increase of over 270 percent over the previous year. For BMW, the analysts expect an average target price of EUR 112.55, which corresponds to an expected increase of around EUR 36 compared to the current XETRA level. The dividend to be distributed in 2022 is estimated at an impressive EUR 5.80, compared to EUR 1.90 in 2021. The Wolfsburg-based carmaker VW also pays out a high dividend (4.80 percent at EUR 7.56).
“We will pay the highest dividend so far,” said Covestro CFO Thomas Toepfer to Euro am Sunday about the distribution for the record year 2021. The company, which emerged from the former chemical division of the Bayer group and has been listed in the DAX since March 2018, is setting In the future, we will increasingly use hydrogen to produce the preliminary products for rigid and flexible foam. While most analysts expect Covestro to achieve moderate growth rates over the next two years, Toepfer sees great growth potential for the company, especially when the automotive industry experiences a new upswing.
According to estimates, BASF will pay a dividend of EUR 3.40 in 2022, 10 cents more than in the previous year. The Ludwigshafen-based group closed the last quarter of 2021 with a drop in sales of 19.57 percent. Most recently, BASF boss Martin Brudermüller had warned in the press about an EU import ban on Russian gas and the resulting catastrophic consequences for the German economy and feared significant production cuts, including at the main plant in Ludwigshafen.
Profit increases and share buybacks of DAX companies
Share buybacks are currently a big topic for DAX companies: companies from the leading German index have earmarked over 25 billion euros for share buybacks. Thanks to increased profits in 2021, many have the decisive financial leeway. More than 30 percent of the DAX companies have launched a corresponding program.
BASF already bought back shares worth 2.9 million euros in February 2022 because the company considers the stock to be massively undervalued. Up to 3 billion euros are to be invested in share buybacks by the end of next year in order to stabilize the share. Allianz has also launched a share buyback program. Investors can expect a distribution of EUR 10.80 from the insurer in 2022 (EUR 9.60 in the previous year). The share is given an average target price of EUR 259.50, around EUR 45 higher than is currently traded via XETRA.
In addition to the car manufacturer BMW, which wants to obtain approval for the first share buyback in 17 years at the annual general meeting, adidas is also pursuing an offensive program worth four billion euros. The expected dividend of the adidas share is 3.20 euros in 2022, 20 cents more than in 2021.
In 2022, Deutsche Bank will again pay out a dividend totaling EUR 700 million (EUR 0.20 per share) for the first time. According to the Süddeutsche Zeitung, this is a first step towards paying out a total of five billion euros to shareholders over the next few years. In January, the Management Board had already announced a large share buyback program worth 300 million euros.
The Munich reinsurance company also shows a mixture of high dividends (4.53 percent, EUR 11.00 per share), moderate growth, good returns and share buybacks. The reinsurer also expects moderate growth in the long term.
Linde is going one step further: The industrial gas specialist is launching a buyback program of around 10 billion euros. The average price target for the share is EUR 314.17, around 6 percent above the current price (as of April 5, 2022). the dividend yield is expected to be 1.45 percent (EUR 4.68) in 2022.
No or only small increases in dividends
At Henkel (1.85 euros) and Bayer (2.0 euros) the dividend payments remain at the previous year’s level. Henkel recently came under pressure because of its ongoing involvement in Russia, despite the war in Ukraine. A dividend of EUR 1.83 per ordinary share and EUR 1.85 per preference share was approved at the Annual General Meeting. Airbus and Continental did not pay a dividend in 2021. In 2022, Airbus will also lag far behind the average dividend yield in the aerospace sector at 1.35 percent (1.50 euros per share). The tire manufacturer Continental was able to post profits for the past financial year, while the year before had still recorded a negative net result; a dividend of 3.33 percent (EUR 2.20 per share) is expected.
Slight increases in dividends compared to the previous year can be expected for the following stocks: RWE (2.29 percent at EUR 0.90, increase of 5.9 percent), Symrise (0.94 percent at EUR 1.02, increase of 5 .2 percent), Fresenius (2.77 percent at EUR 0.92, increase of 4.5 percent), Fresenius Medical Care (2.22 percent at EUR 1.35, increase of 0.75 percent) and Deutsche Telekom ( 3.71 percent at EUR 0.64, an increase of 6.7 percent).
The dialysis service provider Fresenius Medical Care took a decisive step in its growth strategy and financial targets for 2025 in North America with the founding of a new company in the field of value-based kidney therapy. The healthcare group Fresenius is also growing in the North American market with the acquisition of a company in the field of infusion therapies for its Kabi drug division.
DAX climbers and climbers
While Beiersdorf and Siemens Energy were downgraded to the MDAX by the German Stock Exchange, Daimler Truck and Hannover Re (distribution of EUR 5.75, with 3.77 percent in the middle) were recently promoted to the leading index.
At the end of 2021, the Daimler Tuck share was first split off from the parent company Mercedes-Benz and listed on the stock exchange. In February, the Daimler Tuck share initially rose to the small-cap index before the truck manufacturer was included in the leading index in March. The dividend yield is relatively high at 4.78 percent (1.20 euros).
After an index change, both the climbers and the climbers are on average worse than the leading index, which is why industry expert Sven Lehmann cannot give a buy recommendation for the DAX newcomers. “From a historical perspective, it’s not worth buying either promoters or relegators”. According to Deutsche Börse, the next regular review of DAX companies is scheduled for June 3, 2022.
Good dividends
Investors from Vonovia (3.84 percent at EUR 1.66), Deutsche Post (4.24 percent at EUR 1.80), E.ON (4.71 percent at EUR 0 .49 euros, increase of 4.3 percent) and HeidelbergCement (4.61 percent at 2.40 euros).
Deutsche Post was able to increase its operating profit to almost 8 billion euros in 2021, significantly exceeding its own forecasts. The postal service provider has also announced a share buyback program worth billions. Small to moderate dividends of 0.3-2.9 percent are distributed at Porsche (2.90 percent at 2.56 euros), Merck (0.97 percent at 1.85 euros), MTU Aero Engines (1.01 percent at EUR 2.10), Puma (0.94 percent at EUR 0.72), Deutsche Börse (1.94 percent at EUR 3.20), SAP (2.46 percent at EUR 2.45), Brenntag (2, 0 percent at EUR 1.45), Infineon (0.98 percent at EUR 0.30) and Sartorius (0.37 percent at EUR 1.46).
2021 proved to be a record year for Brenntag, with the chemicals distributor increasing its sales by over 23 percent. A comprehensive corporate transformation was heralded with the “Project Brenntag” at the beginning of last year. SAP, on the other hand, is still under pressure after leaving long-time CFO Mucic and growing competition from the USA. With double-digit price losses since the beginning of the year, the share of the Walldorf-based software group is one of the weaker DAX values.
Delivery Hero, Hello Fresh, Quiagen and Zalando are not planning any dividends for the 2021 financial year.
Editorial office finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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