Sell in May and walk away? If you want to earn passive income, you can safely ignore this tip. I think about him a little. For the reporting season in Germany starts again to May. Some German companies are now paying interesting dividends.
4.9% dividend from the beetle supplier
Do you know Progress factory in Oberkirch (WKN: 696800)? The company is engaged in the development and production of metal components for the mobility industry in Germany, the Czech Republic, Canada, Mexico, Hong Kong and China. This includes mechanical components for electrical and electronic applications, such as motor housings, rotor housings, and covers for electronic control units.
With a current market value of EUR 95.6 million. the share’s price earnings are only 6.5 (as of 9 May 2022). The industry average is currently 9.5. The price-to-book ratio of 0.8 also looks favorable.
There was no benefit during the coronavirus pandemic, but now it is picking up speed again. The payout ratio of only 31.8% is healthy. The management around CEO Carlo Lazzarini knows that the upcoming challenges in the field of mobility can still be expensive. Therefore, it is important to keep the capital in the company. This is the only way to invest in new growth potential without taking expensive borrowed capital into the books.
However, if you want to partake of Progress’s decent dividends, you have to hurry. Ex-dividend day is already May 11th. The money ends up in the shareholders’ accounts from 13 May.
Allianz pays and pays and pays
The insurance company will be much better known to you alliance (WKN: 840400). The current yield of 5.52% is attractive. And the company’s dividend history also looks great. The dividend per. share has more than doubled in the last ten years. The Board of Directors pays out 67.7% of the profit in May.
But Allianz also offers upward potential. At the current price of 195.70 euros, the price-earnings ratio is 12.1 and the price-book value ratio is 1. If you come in now, you only pay what is on the balance sheet. You get the regular and above all reliable income from insurance premiums on top.
In light of the cash flows that can be expected in the coming years, I see the stock as significantly undervalued. But I am still reluctant to invest. After all, the challenges for the insurance industry will not exactly diminish in the coming years.
After all, a dividend of 3.25% comes from Lower Saxony
At least 3.25 per cent. So high is the dividend yield for all investors who buy the shares in Hannover Re (WKN: 840221) into the depot.
Anyone who has been there long will be happy for much more. Free cash flow has increased by more than 81% since 2016. This is also reflected in the dividend policy. Including the special dividend, the pool has grown by 173% since 2009 – and that with a healthy and stable payout percentage.
All in all, I’m quite happy with the development of Hanover Re. I especially like that the company invests heavily in its own business with a high return. As a result, decent earnings growth comes as no surprise.
I think Hannover Re has not yet reached the end of the road. There is still a long way to go before the fair value of the stock is reached. But like Allianz, there are some industry-specific risks here. As a result, I do not believe the stock can realize its true potential in the medium term. Investors need perseverance if they do not just want to reap the benefits.
Passive Income: These 3 stocks pay dividends in May and are really cheap article first appeared on The Motley Fool Germany.
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Henning Lindhoff does not own any of the mentioned shares. The Motley Fool does not own any of the listed shares.
Broget Fool Germany 2022