The Fastest-Growing Dividends of Germany

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Apr 11, 2013
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Many businesses are booming outside of the U.S. GuruFocus’ All-in-One Screener and European Premium Membership gives you access to research on companies within 18 countries in Europe. Because of the tremors in the continent’s economy, there are bargains to be found on its exchanges.


There is also yield for investors seeking income. A screen for the companies in German have the highest dividend growth rates shows these companies at the top of the list: Adidas AG (XTER:ADS, Financial), E. ON SE (FRA:EOAA, Financial), Puma AG (XTER:PUM, Financial), RWE AG (XTER:RWE3, Financial) and Deutsche Post AG (XTER:DPW, Financial).


Here is a brief overview of the companies paying the speediest growing dividends in Europe.


Adidas AG (XTER:ADS)


Adidas Group is a sporting goods company with selling footwear, apparel and sports and lifestyle hardware. It is headquartered in German and has growing market share and growth potential in emerging markets and in retail.


The company has the highest dividend growth rate of European stocks, at 12%. Its dividend yield is 0.09%. At year-end 2012, Adidas management proposed a 35% increased dividend of 1.35 euros per share.


With its stock trading at 77.94 euros per share on Thursday after advancing 75% over the past year, Adidas has a market cap of 16.12 billion euros.


E.ON SE (FRA:EOAA)


E.ON is a power and gas companies with facilities in Europe, Russia and North America, and jointly managed businesses in Brazil and Turkey. E.ON deals in diverse range of energy products, such as conventional and dezentralized power generation, natural gas, energy trading, renewable, retail and distribution.


The company has a dividend growth rate of 12%, and a dividend yield of 5%. Its payout ratio is 0.26. It paid a dividend of 1.10 euros per share in financial year 2012. In the future E.ON said it will no longer have a specific dividend target but rather would aim for a target payout ratio. It is keeping it unchanged at 50% to 60% of underlying net income for 2013.


Its stock down 15% over the past year, E.ON trades for 14.48 euros per share on Thursday afternoon and a market cap of 27.21 billion euros.


Puma AG (XTER:PUM)


Puma AG is a sports lifestyle company designing footwear, apparel and accessories. It sells products in more than 120 countries and is headquartered in Germany, Boston, London and Hong Kong.


Puma has a 9% dividend growth rate, 0.6% dividend yield and 0.31 payout ratio. Due to a transformation and cost reduction program the company recently undertook, it reduced its dividend 0.50 euros per share for the financial year 2012, compared to 2.00 euros the previous year.


The company’s stock dropped 12% in the past year to be priced at 232.90 euros per share on Thursday afternoon. It has a 3.48 billion market cap.


RWE AG (XTER:RWE3)


RWE is one of the five largest electricity and gas companies in Europe, focusing on oil, gas, lignite, coal, nuclear and renewable.


The dividend growth rate of RWE is 9%. Its dividend yield is 5.1% and its payout ratio is 0.69. The company’s board is proposing it leave its dividend unchanged from the previous year at 2 euros per share for the year.


RWE’s stock price slid almost 12% over the past year. It trades for 30.36 euros per share on Thursday afternoon and has a market cap of 16.72 euros per share.


Deutsche Post AG (XTER:DPW)


Deutsche Post DHL is the largest mail and logistics group in the world, operating in 220 countries.


Its dividend has been growing at a rate of 7%, and the company has a yield of 3.8% and payout ratio of 0.62. Deutsch Post is proposing at its annual general meeting in May that its dividend for 2012 remain the same as last year at 0.70 euros per share. This would give it a payout ratio of 53%, within its targeted range of 40% to 60% that it set in its 2010 finance strategy.


The company’s stock price increased 27% over the past year, trading for 17.73 euros per share on Thursday afternoon. Its market cap is 21.43 billion euros.


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