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 is expected to reach €60.5 billion—around €1.8 billion less than last year. While some sectors will raise payments, others, particularly automakers, face cuts due to ongoing industry challenges.
The financial sector leads the way with €14.2 billion in projected dividends. Allianz alone accounts for the largest share, paying out over €6.5 billion to its shareholders. This contrasts with the automotive industry, where five DAX-listed firms, including BMW and Volkswagen, are reducing payouts. Together, these automakers will distribute €6.8 billion, a drop of €3.3 billion from the previous year.
Among the 40 DAX companies, 23 plan to increase their dividends. However, eight firms, such as Zalando and Auto1, will pay nothing at all. The MDAX, which includes 50 mid-cap companies, forecasts a 15% decline in total payouts, falling to €7.6 billion. Within this group, 22 companies intend to raise per-share dividends, while 20 will keep payments steady. BMW has confirmed a dividend of €3.95 per share for 2025, and Volkswagen will pay €6.30. No specific reasons have been given for reductions among MDAX automakers like Schaeffler or Rheinmetall, though the broader sector continues to struggle.
The overall dividend decline reflects mixed fortunes across industries. Financial firms like Allianz are boosting payouts, while automakers scale back due to sector-wide pressures. With 23 DAX companies raising dividends and 22 MDAX firms doing the same, the trend remains uneven as businesses adapt to changing conditions.
