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It appears that, due to recent developments, purchasing shares in Allianz and BASF might now be within your reach.

Profits from stocks are surging, along with dividends. Yet, investors are growing skeptical about whether it's beneficial to invest in the stock market surge of Allianz and BASF shares anymore.

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Stock earnings and dividend payouts have risen significantly, yet there's growing hesitation among...
Stock earnings and dividend payouts have risen significantly, yet there's growing hesitation among investors about whether it's still strategical to invest in the rally for Allianz and BASF.

It appears that, due to recent developments, purchasing shares in Allianz and BASF might now be within your reach.

Lately, the market is brimming with cash, and those sweet dividends are flowing like never before. But is it still worth jumping onto the Allianz and BASF stock bandwagon?

The German government has given the green light to a special fund, creating a buzz on stock exchanges. Yet, global investors have been drawn to the cheap European stock markets since the start of the year, transferring billions upon billions. But should you join the rally at this point?

Allianz's Soaring Stock

While Allianz doesn't directly benefit from the German special fund for infrastructure and defense, its stock has shown no signs of stopping. The special fund will inevitably boost the German and European economy, allowing Allianz to reap benefits. On top of that, the company received a €2.6 billion cash injection on Monday by selling its stake in two Indian joint venture companies to partner Bajaj Finserv. This cash influx can either be utilized for reinvestment or distribution among shareholders.

Despite the rampant rally that has pushed Allianz's stock to heights not seen in 25 years, the stock still presents a reasonable value with a P/E ratio of 12.8 and a dividend yield of 4.68%. But should you invest in Allianz stock now?

Even though many analysts foresee limited upside potential, this doesn't come as a shock following such a rally. With the Allianz stock currently considerably distant from the 50-day moving average, there could be a small correction down to that level post-euphoria. For those apprehensive of the current heat, it might be wise to wait a bit. However, long-term, the outlook remains positive for Allianz, and the BÖRSE ONLINE editorial team still endorses buying, with a target price of €380.

Beyond Allianz, let's talk about other special fund beneficiaries.

Want to profit directly from the special fund? You can snag the brand-new BÖRSE ONLINE Stock Report that reveals 6 hidden winning stocks instantly!

BASF's Skyward Trend

The BASF stock has once again resumed its upward trend after some volatile shifts. BASF stands to benefit from chemical products needed for infrastructure projects and military supplies. The stock is being held back slightly by past difficulties and the company's ongoing restructuring, as well as economic concerns from the US.

Recently, analysts have expressed more favorable sentiments towards the German chemical stock. Several have increased their price targets to the €60 region. For instance, Deutsche Bank sees numerous upsides for BASF, such as the special fund and the potential reconstruction of Ukraine post-peace.

While the BASF stock is no longer very cheap, it's still reasonably valued with a P/E ratio of 15.8 and a dividend yield of 4.43%. Investors can continue to buy while setting a dynamic stop-loss at the 200-day moving average. The BÖRSE ONLINE editorial team also endorses buying BASF with a target price of €61.80.

By the way: Compare stock trading providers using our new BÖRSE ONLINE Depot Comparison to find the best conditions for buying stocks.

And also read: Historical Billion-Dollar Deal: These German Stocks are Still Affordable

Conflict of Interest Disclosure The publisher Börsenmedien AG's board and majority shareholder, Mr. Bernd Förtsch, has direct and indirect positions in the financial instruments mentioned in the publication, which can benefit from any price movements resulting from the publication: Allianz, BASF.

Insights:

  1. Allianz offers a high dividend yield of approximately 4.39%, making it an appealing choice for income-focused investors.
  2. With a price increase of around 10.1% since the start of the year, Allianz has shown resilience despite economic challenges in Germany and Europe.
  3. Analysts express optimism about Allianz’s outlook, appreciating its stable dividend and market positioning.
  4. BASF reported Q1 2025 EBITDA before special items of €2.6 billion, in line with analysts' consensus. The company maintained its 2025 outlook despite challenges, such as trade tariffs and high trade duties.
  5. The BASF stock's dividend remains stable, providing a reasonable attraction for income investors.
  6. Given the recent boost in the German economy due to the special fund, the business prospect for Allianz, a financial company, might improve, making it potentially worthwhile for investors to consider purchasing Allianz stock.
  7. As BASF benefits from chemical products needed for infrastructure projects and military supplies, its stock is poised for growth regardless of the special fund. Investors may find it reasonable to keep an eye on BASF's stock and consider making a purchase after a small correction, as suggested by the 200-day moving average.

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