Many shareholders of German companies have to prepare for lower dividends. At a good 59 billion euros, the dividend total of the 90 companies in the DAX and MDAX for the 2024 financial year is likely to be almost 4 percent smaller than a year before. The main reason for the decline: the crisis in the automotive industry.
BMW, Mercedes According to estimates by Dekabank, VW and VW are likely to pay out a total of 9.9 billion euros, 4 billion euros less to their shareholders than a year ago. “And there is a risk that this amount could be even lower, because given the announcement of factory closures and staff cuts, it can be assumed that the pressure on Volkswagen will increase, the dividend will have to be cut more than previously assumed,” says Dekabank capital market expert Joachim Schallmayer.
The majority of DAX companies want to pay more dividends
Despite the weakness of the automotive industry, the 40 companies in the German stock index will “just miss” the record of 55 billion euros in dividends from the previous year, with an expected 52.2 billion euros in dividends, Schallmayer continued.
Dekabank expects an unchanged dividend from nine DAX companies. Except in the automotive sector, there will probably be less money at the chemical company BASF and at the aircraft manufacturer airbus – although the payout at Airbus was higher the year before due to a special payment.
Increasing distribution in the MDax
According to calculations by Dekabank, the 50 companies listed in the MDax will pay a total of 6.85 billion euros as dividends for the 2024 financial year, almost 7 percent more than in the previous year. An increase in the payout per share is expected for 28 companies, Dekabank expects an unchanged dividend for 18 MDax companies, and four companies are likely to make cuts. Where the stock market still offers opportunities in 2025 manager magazine analyzed
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