Attractive source of return: DAX groups pay out record dividends

All DAX companies have announced their dividend for FY 2016. The dividends are generous again: overall, the DAX groups will pay out EUR 32.1 bn, an increase of 8.5% on the previous year and a new all-time high. The HDAX companies are together paying out EUR 42.6 bn in dividends. Overall, 75% of the companies have raised their dividend, 20% left it unchanged and only 5% reduced it. Only 11% of the companies did not pay a dividend.

Looking at the next twelve months one can expect a dividend return of around 3% in Germany and of as much as 3.5% in Europe. But it should be borne in mind that the foreseeable dividend yields are around 15% lower than the average for the last ten years because of higher share prices. Relative to German Bunds, however, this is still attractive. Especially for long-term investors who do not mind short-term fluctuations caused by the many political irritations, dividends remain an interesting and reliable source of return.

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