2025 Dax Dividends Surpass EUR 52 Billion Mark
Rewritten Article:
In the upcoming years, the 40 companies listed in Germany's DAX Index are expected to distribute a hefty sum of €52.2 billion to their shareholders, according to DekaBank's analysis. Although this figure falls slightly short of the record high of €55.0 billion reached in 2024, the companies have surpassed expectations despite facing numerous location debates.
The 50 companies listed in the MDAX are projected to boost their payouts further in 2025, increasing from €6.4 billion to approximately €6.9 billion, a rise of nearly 7%. This brings the total dividend payout from the 90 companies listed in the DAX and MDAX to around €59 billion.
23 of the 40 DAX companies are anticipated to increase their dividends per share compared to the previous year. Nine companies are expected to keep their payouts the same, while eight are forecasted to see a decrease.
Joachim Schallmayer, head of capital markets and strategy at DekaBank, explains that the DAX companies have benefited from their international orientation in a challenging economic environment. Despite a sluggish economy and ongoing geopolitical crises, the companies have managed to maintain their profits and dividends at a high level. "The DAX companies were able to benefit from their international orientation in a difficult economic environment," Schallmayer states.
The total dividend payout is expected to increase slightly, with a payout ratio of 39.5% for 2025, slightly below the long-term average of 41%. Schallmayer adds, "In general, the dividend policy of the DAX companies is characterized by discipline and foresight."
Allianz, the multinational insurance and financial services conglomerate, is expected to top the list as the company paying out the most, having edged out automobile manufacturers who have traditionally held the top spot in recent years. According to Deka, Allianz is projected to pay out around €5.9 billion alone, while the combined dividends of the three major automobile manufacturers, BMW, Volkswagen, and Mercedes-Benz, will total €9.9 billion, a decrease of 4 billion euros compared to 2024.
Mercedes is expected to slip from the top spot to 4th place, while Volkswagen and BMW follow in 5th and 7th, respectively. Deutsche Telekom and Siemens are projected to rank 2nd and 3rd, respectively, due to both the increases in their own payouts and the cuts at the large automobile manufacturers.
In 2025, much like in previous years, a significant portion of the total dividend volume will be paid out by a few companies. "The seven 'Magnificent DAX dividend payers' together distribute more than half of the total dividend sum," says Schallmayer. If the 90 DAX and MDAX companies are divided by sectors, manufacturers of cyclical consumer goods – including automobiles – account for 23% of the distributions, followed by industry and finance, each with 21%.
Regionally, companies based in Bavaria are predicted to pay out a total of around €18.5 billion to their shareholders, making the region the most generous in Germany in terms of dividends. North Rhine-Westphalia follows closely with €13.5 billion, while Baden-Württemberg comes in third with just under €12 billion.
According to Deka, DAX companies currently yield a dividend return of 3% at current prices. Despite expecting some price fluctuations in the coming year due to various challenges, strategist Schallmayer anticipates a moderate increase in corporate profits and share prices. "Especially in such an environment, the dividend is a reliable source of income," he says. Schallmayer advises investors to reinvest the received dividends for long-term returns, stating that "the overall return on equity investments is primarily determined by the dividend and its reinvestment."
Calculating the expected total dividend payout by the DAX and MDAX companies involves understanding the diverse dividend policies of individual companies, their variable revenue sources, and overall market trends. Trends indicate that companies continue to manage dividends based on financial performance and strategic goals, with some, like Munich Re, committing to annual dividend increases of at least 5% in "normal" years.[3]
- In 2025, Siemens, one of the 90 companies listed in Germany's DAX and MDAX, is projected to contribute to the total dividend payout of around €59 billion.
- The finance sector, represented by companies like Siemens, is forecasted to account for 21% of the total dividend distributions in Germany, making it the second-largest sector in terms of payouts.
- The average dividend return for the DAX companies currently stands at 3%, making their dividends a reliable source of income for investors, according to Joachim Schallmayer, head of capital markets and strategy at DekaBank.
- As investors reinvest their dividends for long-term returns, the overall return on equity investments is primarily determined by the dividend and its reinvestment, as stated by Joachim Schallmayer.
