Undervalued German Shares with a High Dividend Yield of 11.63% and Low Price-to-Earnings Ratios
In the bustling world of German finance, there are a plethora of stocks that often go unnoticed, offering high dividends and low Price-to-Earnings (P/E) ratios. One such resource for finding these hidden gems is the BÖRSE ONLINE Outperformance Newsletter, which provides exclusive tips from their editorial team, free of charge.
Stocks to Watch
BASF (XTRA: BAS)
Currently trading at €50.20, the chemical giant BASF boasts a P/E ratio of 11.7 and a dividend yield of 6.66%. The BÖRSE ONLINE team recommends buying BASF with a target price of 65 euros. After a recent price increase, the stock looks better, and it can be entered if it remains above the 200-day line.
Mutares (XTRA: MUX)
With a low P/E ratio of 6.0, Mutares offers the highest dividend yield on the list at 11.63%. This automotive supplier is a compelling choice for investors seeking undervalued stocks with attractive dividends.
Freenet (XTRA: FNT1)
The telecommunications company Freenet has a P/E ratio of 11 and a dividend yield of 7.19%. Currently trading above the 50-day and 200-day lines, the stock is in an uptrend, making it an attractive choice for investors. The BÖRSE ONLINE team also recommends buying Freenet with a target price of 30 euros.
Volkswagen (XTRA: VOW3)
Despite being one of the many auto stocks from the DAX, Volkswagen stands out with a projected 2025 P/E ratio of 3.2 and a high dividend yield of 9.90%. However, investors should exercise caution with automakers, as they can experience earnings declines, leading to higher P/E ratios and lower dividends.
A Wider Search
A comprehensive search was conducted on the DAX, MDAX, and SDAX for stocks with high dividend yields and low P/E ratios. One such company that emerged is Nordex SE (XTRA: NDX1), a German wind turbine manufacturer currently trading at around €21.68 versus an estimated fair value of about €33.32, implying an undervaluation of approximately 34.9%. Other notable companies include Hypoport, a software company focused on the German mortgage platform market, and Atlas Copco, a Swedish-based company trading at a discount to its fair value.
For investors interested in a more comprehensive list of stocks combining high dividend yields, low P/E ratios, undervaluation, and target/entry prices, a reasonable approach would be to use specialized stock screeners focusing on German stocks, cross-reference with fair value or intrinsic value analyses, watch sectors noted for growth and undervaluation, and consider professional advisory or subscription to investment research platforms that publish target and entry prices regularly.
Investors should consider adding BASF (XTRA: BAS) and Freenet (XTRA: FNT1) to their portfolios, as both stocks have low P/E ratios and offer attractive dividend yields. For a comprehensive list of undervalued stocks with high dividend yields, investors may consider using specialized stock screeners focusing on German stocks, cross-referencing with fair value or intrinsic value analyses, and considering professional advisory or subscription to investment research platforms that publish target and entry prices regularly. Volkswagen (XTRA: VOW3) and Nordex SE (XTRA: NDX1) also exhibit these characteristics and should be evaluated carefully.
