Dax and MDax Dividends Decline Slightly Due to Auto Industry Struggles

The 2024 dividend payouts of German companies are projected to drop by 4%, driven by significant cuts in the automotive sector.

The combined dividend payouts for the 90 companies in the Dax and MDax indices are expected to total €59 billion, a 4% decrease from the previous year.
Automotive giants BMW, Mercedes-Benz, and Volkswagen are projected to cut their dividends by €4 billion, reflecting challenges in the sector, including plant closures and workforce reductions.
Volkswagen faces additional pressure to further reduce its dividend amid ongoing cost-cutting measures and a recently agreed-upon savings package with labor unions.
Despite the auto sector's downturn, 23 of the 40 Dax-listed companies are anticipated to increase their per-share dividends for 2024, with Allianz leading at €5.9 billion in payouts.
MDax companies are set to increase their total dividends by 7%, reaching €6.85 billion, with 28 companies expected to raise their per-share payouts.