Top DAX stocks that currently revolve around well-rounded brands? I am currently seeing two intriguing names that foolish investors should keep on their radar: Vonovia and Allianz. A little note in advance: Both should now be very cheap in their price level.
So let’s look up Vonovia (NASDAQ: AAPL) and alliance (WKN: 840400) as supposed top-DAX stocks targeting their individual well-rounded brands. As well as what they now have to offer at their course levels.
Top DAX shares around the brand: Allianz and 180 euros!
One of the first DAX stocks to revolve around a round brand is Allianz. 180 euros is the level that is particularly interesting to me. For a relatively simple reason: the DAX insurance company should receive a dividend of 6% at this level. At least we come to this value purely arithmetically if we compare the previous dividend of 10.80 euros with this share price.
Whether the brand for the DAX insurance company is so round is another question, at least in terms of the share price. But the dividend of 6% shows that we are still fundamentally interested in this top stock. Here we see a really favorable valuation target. Starting with a price-to-book ratio that would be around 0.92 at this price level. Or a price-earnings ratio adjusted for special effects that seems interesting with a value of around 10.
The crux of the matter, however, is that the top-DAX stock expects growth over the medium term. By 2024, the adjusted earnings per. stocks on average grow by at least a mid-digit percentage. A maximum earnings growth of up to 7% should even be possible. The dividend is also increased by at least 5% per year. This shows that even this round mark of 5% dividend yield is only a foretaste of what is to come in the medium term.
Vonovia: 30 euros in sight!
Vonovia is another top DAX stock now looking at a round brand. In terms of share price, the DAX residential real estate group has fallen below 30 euros. The last time the shares were so cheap was in February 2018. Really very remarkable. The broad market seems to be punishing the residential real estate group for its lack of pricing and the high level of debt. The latter is not unusual for a residential real estate group.
This changes the basic valuation and therefore becomes cheaper. Meanwhile, the dividend yield, for example, is 5.6%, which really suggests a very cheap valuation target. The price-FFO ratio is also attractive with a value of probably 10 for this financial year. Rising interest rates and debt or not: I see solid long-term returns for the DAX Group.
Below 30 EUR, I see Vonovia as a cheap top DAX stock that has great potential. Above all, because the management here is not just talking about operational growth in funds from operations. No, but because you will consistently increase the yield. Through residential properties, this can create a solid, passive income.
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Vincent owns shares in Allianz and Vonovia. The Motley Fool does not own any of the listed shares.