Stock exchanges - Dekabank expects record dividends for Dax shareholders
According to calculations by Dekabank, shareholders of German companies can expect a record amount of dividends for the 2023 financial year. The 40 companies in the German share index will therefore pay out a total of 54.6 billion euros. This would exceed the previous year's figure in the Dax by 1.6 billion euros. At that time, the special dividend paid by the car manufacturer Volkswagen for the successful IPO of its subsidiary Porsche was not included in the calculations.
The companies have succeeded in maintaining their profits at a high level despite the sluggish economy and the negative impact of geopolitical crises, according to Deka capital market expert Joachim Schallmayer in a statement from the Wertpapierhaus der Sparkassen.
Further increase in distributions expected
As things stand at present, 26 of the 40 companies in the top German stock exchange league are likely to increase their dividend per share for the past financial year compared to the previous year. An unchanged dividend is expected for 11 DAX companies, while Bayer, BMW and Fresenius are expected to pay out less money to shareholders than in the previous year, according to Dekabank's compilation. In total, the three major car manufacturers BMW, Mercedes and VW alone pay out around a quarter of the total dividend amount of all DAX companies.
For the current financial year, Dekabank expects a further increase in dividends in the Dax to 58.5 billion euros. "Thanks to their international orientation, companies will succeed in 2024 in decoupling themselves from the challenging domestic outlook, benefiting from the global growth outlook and increasing profits once again," predicted Schallmayer.
More dividends overall in the MDax too
According to the calculations, the 50 companies listed on the MDax will pay a total dividend of around EUR 7.1 billion for 2023, a good seven percent more than for the previous financial year. Dividend payments are expected to increase for 22 companies, while the dividend per share should remain unchanged for 20 and the remaining 8 MDax companies are likely to make cuts.
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- The record dividends expected for Dax shareholders in the 2023 financial year are largely attributed to the maintained profits of German companies despite the challenging economic situation and geopolitical crises.
- According to Dekabank, BMW is among the DAX companies expected to pay out less dividend money to shareholders compared to the previous year.
- The total dividend amount for all DAX companies is projected to reach 58.5 billion euros in the current financial year, with a significant portion coming from the major car manufacturers like BMW, Mercedes, and VW.
- The 50 companies listed on the MDAX are anticipating a total dividend of around 7.1 billion euros for 2023, showing an increase of 7% compared to the previous financial year.
- The exchange rate in Frankfurt on the Main has been an influential factor in the strong performances of German companies, contributing to their high profits and subsequent dividends.
- Decabank predicts that the global growth outlook and increasing profits shall enable German companies to decouple themselves from domestic challenges, thereby continuing to distribute substantial dividends to shareholders.
Source: www.stern.de
