Financial sector shines - Automakers significantly cut dividends - Financial sector shines - Automakers significantly cut dividends
Dividend payouts from Germany’s top companies are set to fall in 2025. The combined total for DAX and MDAX firms will drop by €1.8 billion to around €60.5 billion. Several sectors, particularly automotive and financial services, are seeing significant changes in their distributions.
The financial sector remains the largest contributor, with payouts reaching €14.2 billion. Allianz alone accounts for over €6.5 billion, making it the biggest dividend payer among DAX-listed firms. No other financial company is expected to exceed this figure individually.
Among DAX companies, 23 out of 40 plan to increase their per-share payouts. Nine will keep their dividends unchanged. However, the automotive sector faces cuts, with five major firms—BMW, Mercedes-Benz, Volkswagen, Porsche, and Continental—reducing distributions due to ongoing industry challenges. Overall, DAX-listed automakers will pay €6.8 billion, a €3.3 billion decline from last year. The MDAX tells a mixed story. While 22 companies intend to raise dividends and 20 will maintain them, eight firms will reduce payouts. Another eight—Zalando, Auto1, Delivery Hero, HelloFresh, Ionos, Nordex, Redcare Pharmacy, and TeamViewer—will pay no dividends at all in 2025. The MDAX total is projected at €7.6 billion, a 15% decrease from the previous year.
The overall decline in dividends reflects sector-specific struggles, particularly in automotive and parts of the MDAX. Financial firms like Allianz continue to lead in payouts, but the broader trend points to reduced returns for shareholders. Total distributions for 2025 will stand at €60.5 billion, down from the previous year’s figure.
