Despite declining profits, dividend payouts for Dax companies reach another record high this year: the 40 corporations are paying out a total of 53.8 billion euros to their shareholders, which is 2.4% more than the 52.5 billion euros last year. Half of the Dax companies are paying their shareholders more money than ever before. For 20 companies, the dividend is at a new record level. This conclusion comes from an analysis by the auditing and consulting firm EY. The dividend figures for the 2023 fiscal year are still subject to approval by the upcoming annual general meetings for most companies. The EY study confirms analyses by Deka and LBBW, which have already predicted record payouts in the Dax for this year.

According to EY, Germany's largest dividend payer is once again the automaker Mercedes-Benz, with 5.5 billion euros, despite a slight decrease in dividend payouts of 0.7%. Following closely behind is the insurance company Allianz with 5.4 billion euros, which raised its payout by 18%. Volkswagen increased its payout by 3% and ranks third with 4.5 billion euros.

On the fourth place is Deutsche Telekom with 3.8 billion euros, followed by BMW with 3.8 billion euros and Siemens with 3.7 billion euros. BASF ranks seventh with 3.0 billion euros. SAP with 2.6 billion euros, Airbus with 2.2 billion euros, and DHL Group with also 2.2 billion euros complete the top ten payers. Porsche AG follows in 11th place with 2.1 billion euros, ahead of Munich Re with 2.0 billion euros and Daimler Truck with 1.5 billion euros.

This year, 23 companies are paying more money to their shareholders, while nine companies are cutting their payouts. Eight companies are keeping their payout sums at the same level as the previous year. Five Dax companies will not pay dividends to their shareholders this year. As per EY, these are Covestro, Fresenius, Qiagen, Siemens Energy, and Zalando.

Porsche AG's shareholders can look forward to the highest increase this year: The automaker is increasing its dividend payout by a whopping 129% to 2.1 billion euros. Commerzbank is also raising its dividend significantly by 65.5%. Additionally, Airbus shows a high increase in payouts with 55.8%, followed by Continental with 46.7% and Deutsche Bank with 46.7% as well. Daimler Truck and Beiersdorf are also increasing their payouts significantly, with an increase of 43%. Rheinmetall and Munich Re are at a plus of 32.6% and 27.0%, respectively.

In contrast, BMW's payout sum decreased by 31% compared to the previous year. MTU Aero Engines has a decrease of 37% and Sartorius of 48%. The decrease in payout sum at Bayer is extremely high at 95%. Since Fresenius will not pay a dividend this year, the decrease here is even 100%.

The payout ratio of individual stocks is also interesting. BASF stands out with an extremely high value of 1,349%. It is followed by Eon with 268%. In third place is Siemens Healthineers with 70%, ahead of Allianz with 63%.

While dividend payouts in total are slightly increasing, the profit development in the past year, based on EY's calculations, was in the opposite direction: The net income of the Dax corporations, measured by the net income after taxes, decreased by 6% to 120.9 billion euros in total. „Profits and dividends have recently diverged slightly – companies are paying out more to their shareholders for the past year, even though they have earned less overall“, explains Mathieu Meyer, partner at EY. „However, the payout ratio – the proportion of dividend payments to total profits – at 44.5% is still below the five-year average of 47.6% and therefore at a solid and justifiable level.“

Furthermore, the trend is not upward for all companies: „Some large dividend payers have reduced their payments to shareholders this year, paying tribute to the increasingly difficult business conditions and high investment needs“, adds Meyer. „On the other hand, despite the downturn in the economy, many companies have once again achieved record results – so it is only logical to involve shareholders appropriately.“ With their dividend policies, the Dax corporations also try to underline their attractiveness as investment targets, emphasizes Meyer. „Given the high volatility in recent years, including in terms of stock price development, old virtues such as predictable and appropriate dividend payments are again coming into focus from the shareholders' perspective.“ Compared to the pre-pandemic year 2019, the payout sum of the Dax corporations increased by 54%, significantly more than inflation.

Nevertheless, EY expert Meyer is sceptical whether the dividend boom will continue next year: „The economic situation is gloomy, and both economic and political risks are more likely to increase than decrease. Consequently, more and more Dax corporations are announcing ambitious cost-cutting programs – if the pressure on profits continues this year, dividend payouts are likely to come under scrutiny. Because while profits are coming under pressure, the need for investment remains very high: The transformation of business models and new technological developments such as the trend toward electromobility require high investments.“

Deka is less sceptical than EY and expects Dax dividends to increase again next year.