Thursday, February 2

20 trends for the new stock market year | ideas magazine

Trend 18: The DAX dividend total increases by 37 percent to 46.4 billion euros, making the dividend yield attractive at 2.7 percent. The profits of the DAX companies for the 2021 financial year have developed much better than we expected, with currently anticipated profit growth of 60 percent. Therefore, the DAX shareholders in 2022 beckoned to a warm rain of dividends, because the DAX dividend total should increase by an impressive 37 percent from 34.0 to 46.4 billion euros. If the ten new DAX members are excluded, the dividend growth of the “old” DAX is still 29 percent (see chart 4). The DAX currently has a market capitalization of 1,750 billion euros, so that 46.4 billion euros in dividends correspond to a dividend yield of 2.7 percent. This means that DAX dividend stocks remain an attractive investment compared to the return of 0.6 percent for BBB corporate bonds and –0.4 percent for 10-year government bonds (see chart 5).