According to calculations by Dekabank, shareholders in German corporations can expect a record amount of dividends for the 2022 financial year. The securities house of the savings banks expects distributions of 54.9 billion euros, which would be 3.6 billion euros more than a year earlier.
The reason for the high dividends are record profits, explains Deka capital market expert Joachim Schallmayer. It is “only logical to let the shareholders participate appropriately”. At 37.2 percent, the dividend ratio is still below the long-term average of 41 percent.
Deka expects higher distributions from 29 companies from the leading index Dax this year. Of the top four dividend payers, three are from the automotive sector. Mercedes, alliance, bmw and Volkswagen together account for more than a third of the dividend total in the Dax. According to the analysis, only five Dax companies are likely to reduce their distributions: Adidas, Continental, Covestro, SAP and SiemensEnergy. The overall dividend yield for the Dax is 3.6 percent.
Optimistic outlook
The War in the Ukraine caused uncertainties in corporate planning and led to higher costs, according to the analysis. Stable demand combined with limited supply leads to positive profit margins. »Rising inflation has also had a positive impact on earnings.«
The analysts believe that the recession will not prevent companies from paying dividends. A slump in profits is not to be expected in 2023. “The long-term business prospects and thus the dividend prospects are stable,” said Deka expert Schallmayer. In the coming year, the Dax shareholders are likely to look forward to a further increase in dividends to 56.8 billion euros.