2025 Dax Dividends Maintain Elevated Figures above €52 Billion
Rewritten Article:
All eyes are on the DAX's 90 companies as they're expected to shower shareholders with a whopping 59 billion euros in dividends by 2025! While this dividend payout may not quite smash the 2024 record of 55 billion euros, the companies have outperformed expectations, thanks to some heated location debates. This news comes from none other than DekaBank’s analysis of DAX and MDAX dividend forecasts.
In the MDAX, the 50 listed companies are projected to boost their dividend payouts from 6.4 billion euros in 2024 to around 6.9 billion euros in 2025, representing a nearly 7% increase. A total increase to around 59 billion euros is anticipated for the 90 companies in both the DAX and MDAX.
The analysis reveals that 23 of the 40 DAX companies will likely bump up their dividends per share compared to the previous year, with 8 seeing a decrease. Nine companies are expected to maintain the same dividend amount.
"The DAX companies have leveraged their international orientation to thrive, even in a challenging economic climate and turbulent geopolitical crises," shares Joachim Schallmayer, DekaBank’s head of capital markets and strategy.
The payout ratio for companies in 2025 is expected to show a slight bump to 39.5%, still below the long-term average of 41%. "The dividend policy of DAX companies is marked by discipline and vision," Schallmayer concludes, "as providing shareholders a taste of the company's success plays a vital role in creating a shareholder culture."
Allianz Standing Tall
While automobile manufacturers have been front-runners for dividend payouts, insurance companies are eagerly moving to the forefront. "We're seeing a shift in the DAX dividend landscape towards insurers," shares Schallmayer. Forecasts indicate that, in 2025, Allianz will claim the top spot with approximately 5.9 billion euros in dividends alone. Meanwhile, the combined dividends of BMW, VW, and Mercedes will be estimated at 9.9 billion euros – a drop of 4 billion euros compared to 2024.
Mercedes slipping to 4th position
Insurance giant Allianz will be taking the gold in 2025, with a 11% share of the total dividends from DAX companies. According to the Deka analysis, Deutsche Telekom will rank 2nd, thanks to an additional 650 million euros in dividends, while Siemens will come in 3rd. Mercedez will slide from 1st to 4th, VW from 3rd to 5th, and BMW from 5th to 7th.
Consistently, a significant share of the total dividend volume is dispersed by a select few companies, known as the 'Magnificent DAX dividend payers.' Together, these seven companies account for over half of the total dividend sum.
Regionally, DAX companies based in Bavaria are predicted to donate around 18.5 billion euros to their shareholders. "Bavaria once again leads the way in Germany in generosity towards dividends," says Schallmayer. North Rhine-Westphalia follows closely with 13.5 billion euros, and Baden-Württemberg slides into third with nearly 12 billion euros.
"Dividends serve as a resilient source of income"
The DAX index currently offers a dividend yield of 3% at current prices, but Schallmayer warns of potential significant stock price fluctuations in the coming year. Despite these challenges, he envisages moderate growth in company profits and stock prices, which means that dividends could remain a dependable source of income. Schallmayer suggests investors should consider reinvesting the dividends they receive, as the long-term return on equity investments is mainly determined by the dividend and its reinvestment.
- The DAX's 90 companies are projected to distribute approximately 59 billion euros in dividends by 2025, despite some declines compared to the 2024 record.
- Allianz, an insurance company, is forecasted to claim the top spot in the DAX dividend landscape, with approximately 5.9 billion euros in dividends in 2025.
- Mercedes will slide from the first to the fourth position among the DAX companies, while Allianz will take the gold with a 11% share of the total dividends from DAX companies.
- Companies based in Bavaria are predicted to disburse around 18.5 billion euros to their shareholders, making Bavaria the most generous region among the DAX companies in terms of dividends.
