However, given the uncertain economic outlook, it is unclear how long the dividend boom will last. picture alliance/dpa | Andreas Arnold
According to an EY analysis, DAX companies are paying out a record sum of 53.8 billion euros to their shareholders this year despite falling profits. 23 of the 40 DAX companies are increasing their payout amounts, with Mercedes-Benz being the largest payer at 5.5 billion euros. At 44.5 percent, the payout ratio is below the five-year average of 47.6 percent and is rated by EY as solid and justifiable.
Despite falling profits, the DAX companies are paying out a record sum to shareholders this year, according to an EY analysis. The total amounts to 53.8 billion euros, 2.4 percent more than in the previous year. This is the highest value since the analysis began in 2012. Of the 40 DAX companies, 23 are increasing their payout amounts this year.
According to EY, the largest payer is the car manufacturer Mercedes-Benz with 5.5 billion euros, despite a slight decline in the payout of 0.7 percent. The Munich insurance group Allianz follows closely behind with an increase of 18 percent to 5.4 billion euros. Volkswagen takes third place with 4.5 billion euros after increasing its payout by three percent. The dividends for the past financial year are paid out after the general meetings.
Porsche AG’s payout rose particularly sharply by 129 percent to 2.1 billion euros. In nine companies, shareholders receive less than in the previous year, and in five companies they receive no dividend at all. The other DAX companies have not changed their dividend policy.
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The increase in the dividend sum stands in contrast to the overall decline in consolidated results of the DAX companies last year, which fell by six percent to 120.9 billion euros. Nevertheless, the payout ratio of 44.5 percent remains below the five-year average of 47.6 percent and is therefore rated by EY as solid and justifiable, as EY partner Mathieu Meyer explained.
Dividend distribution of the DAX companies since 2012. picture alliance/dpa/dpa Graphic | dpa-infografik GmbH
However, given the uncertain economic outlook, it is unclear how long the dividend boom will last. “The economic situation is bleak, both the economic and political risks are increasing rather than decreasing,” said Meyer. In view of falling quarterly profits, more and more DAX companies announced tough savings programs. “If the pressure on profits continues this year, dividend distributions will probably also be put to the test.”
The analysis from the beginning of April takes into account all general meeting invitations with dividend announcements from DAX companies, according to EY.
dpa/AA