The German Aktien Index (DAX 40) comprises the 40 largest companies traded on the Frankfurt Exchange. The index, which fell 5.75% last year, is already starting to gain momentum, rising 17.08% over the past six months. Going forward, analysts expect German stocks to gain further support as the opening up of the Chinese economy increases exposure to China.
Picked up the logistics company Deutsche Post (DE:DPW) and chemical manufacturer BASF SE (DE:BAS) From DAX 40. These are large cap stocks that pay stable dividends. Plus, analyst buy ratings make it a good choice for investors in 2023.
of TipRanks Dividend Calendar Tools help investors find a company’s dividend payment schedule in a particular market. This tool can be used by investors to find out the next dividend date for the German market.
Let’s see what works for these two companies.
Deutsche Post DHL Group
As one of the world’s largest logistics companies, Deutsche Post enjoys a competitive edge along with solid profitability.
among them Third Quarter 2022 Results‘s revenue increased 20%, primarily driven by international business. Among its divisions, global forwarding and freight forwarding had the highest revenue, he increased by 38%. Total net profit he increased by 13% to 1.1 billion euros. Solid operating results have also strengthened the company’s financial strength. Free cash flow increased from 1.3 billion euros in the third quarter of 2021 to 1.8 billion euros in the current quarter.
The company has raised its 2022 revenue guidance to €8.4 billion and confirmed its medium-term outlook for 2024.
Based on the numbers, the dividend looks safe and is covered by the profit. For 2021, the company has announced a dividend of €1.8 per share for him with a payout ratio of 43.6%. Dividend yield is 4.94%above the industry average of 1.6%.
of The company’s shares are down 28% This presents a good buying opportunity for investors.
Deutsche Post stock price forecast
Deutsche Post shares have a Strong Buy rating on TipRanks based on 9 Buy recommendations and 3 Hold recommendations.
The average target price is €48.41, representing a 27.3% change from the current price level.
Analyst at Berenberg Bank William Fitzalan Howard The maximum target price for the stock is €61.0.
BASF is a leading chemical manufacturer serving industries such as electronics, packaging, pharmaceuticals, textiles and agriculture. The company’s market capitalization on the Frankfurt Stock Exchange is €50.23 billion.
The company’s top product expertise, diverse customer group, global presence and solid dividends make it an attractive investment. The company is also part of his DivDAX stock index, which includes Germany’s top dividend payers.
BASF’s dividend yield is 6.59%, paid a dividend of EUR 3.4 per share in May 2022. The company follows a progressive policy and aims to increase its dividend per share each year.
Despite the difficult environment, the dividend was supported by a good performance.Company’s Sales in Q3 2022increased to 21.9 billion euros from 19.7 billion euros in the same period last year. Profits fell slightly to €1.3 billion for him due to rising energy and raw material costs. To overcome this hurdle, the company has launched a cost-cutting program in Germany and Europe, with the goal of reaching a target of €500 million per year in 2023 and 2024.
Is BASF a good stock to buy?
According to TipRanks’ analyst consensus, BASF stock receives a medium buy rating based on a total of 12 recommendations.
The target price is €54.04, representing a small change of 1.75% at the current price level. Stock price rose about 22.6% For the last 6 months.
Despite operating in a difficult environment, these companies have managed dividend growth for their shareholders. Their dominant positions in their respective industries help them overcome difficulties smoothly. They seem like the perfect addition for income investors.