A New Source For Dividend Growth Investors: The German Dividend Aristocrats

Jul. 01, 2016 2:34 PM ETBAYRY, FMS, FSNUY, HENKY, LIN, MURGY, SIEGY, STWRY33 Comments
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  • International diversification can help dividend growth investors reduce risk and enhance total return.
  • The new list of German Dividend Aristocrats is a possible source for investors who are seeking more international exposure.
  • There are 6 companies that have increased their distributions for 10 or more years; 22 companies that have at least maintained their payments for 10+ years.
  • Altogether there are 28 identified Dividend Aristocrats in Germany as of June 2016.

Why a new list?

Anyone reading posts on Seeking Alpha is very familiar with them: American companies that are increasing their dividends year after year. Not just a few years -- for decades. Coca-Cola, Johnson & Johnson and Procter & Gamble are just a few of these.

These companies can be found in various compilations. Some of them are nearly as well known as the companies themselves -- at least among the DGI community. On one hand, there is the extensive work of David Fish and his list of Challengers, Contenders and Champions (CCC).

On the other hand we have another famous Seeking Alpha Contributor, Robert Allan Schwartz and his detailed work on companies and their dividends.

And there are still more: if you take a short look at the Dividend Growth Center you can find links to compilations for the UK, Spain and the EU.

For some time I have asked myself the question: why isn't there a similar list for Germany? We are speaking of the biggest European country, the biggest European market. Why not for Germany?

I found three reasons for this:

  1. There is no real "equity culture" in Germany. Many Germans think of the stock market as something disreputable.In 2013 there were only 8.9 million shareholders from over 82 million German people. This corresponds to just 11 percent of the population.
  2. There are no companies in Germany that have such impressive dividend streaks. The longest dividend "growth" history in Germany is from 1969 onwards: reassurance giant Munich Re has not cut its dividend in 47 years (but keep in mind: we are talking about "maintaining and/or increasing" the dividend, not increasing year after year)
  3. There are only very few real "aristocrats" that have increased their dividend for 10 or more years. In fact there are currently only six of

This article was written by

rickrack profile picture
German buy&hold investor with focus on dividends. Father of three. Rated "best daddy in the world" :-)Managing three portfolios:One of them is the Anglo-American-Canadian dividend growth portfolio.Author of the German Dividend Aristocrats - check them out here on SA

Disclosure: I am/we are long MURGY, SIEGY. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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