Allianz: With more than 5% dividend yield for 2024

Last Updated: 12. Januar 2024By

The hustle and bustle of these days is sometimes unbearable for us as investors. The protests – whether understandable or not -, multiple wars, discussions about an economic crisis and the overall mood in the country seem to weigh heavily on everyone’s minds. Therefore, I would like to bid farewell to the first full trading week of the new year with some good news for you: There are, as always, companies that are doing well. One example is Allianz. I have looked at the expectations for the current year – and once again, as in previous years, I can announce a top „return on investment“.

Allianz: More than just the best bonds I have chosen Allianz because the company can be calculated fairly well without speculative growth assumptions. The dividend yield for the past year 2023 is expected to be around 5.05% based on the current share price. And as always in previous years, if the dividend increases in the coming years, your investor return will also increase.

For those who have held the stock for more than 10, 11 or 12 years, based on their entry prices and the increased dividends, they will already be receiving a personal dividend yield of well over 10%. There is no better secure return for you.

Bonds that even surpass the current dividend yield have much too high risks. Even with attractive medium-term government bonds, which are now being advertised everywhere, you may only receive 4%, and with some luck and depending on the debtor, slightly more. However, you also have to accept the risk of price fluctuations, especially if interest rates increase again due to rising inflation rates (as is currently the case in the US). In contrast, you can sell Allianz tomorrow or, as I would recommend, keep it in your portfolio for the next ten years.

Allianz is profitable Of course, there are also risks with Allianz stock. Trying to sell every day is not a good idea due to the price fluctuations. However, the price development has not only been solid but can also be predicted well under normal conditions.

The price-earnings ratio (P/E ratio) based on the profits for 2024 will be around 9 to 10. Therefore, the price-sales ratio (P/S ratio) is maybe around 0.6 or slightly higher. As always, these indicators have remained at a similar level despite rising prices in recent years due to increasing profits and revenues.

Over a longer period, the stock market tends to regress to the mean, meaning it seeks out average values and in the case of Allianz, a path upwards. Rising revenues and profits lead to increasing prices and indicators, as described above. The stock may not be spectacular, perhaps even boring – but earning over 5% dividend and achieving a return of over 11% for the past 12 months, for example, is still a good result for 2024.

Allianz: Earn double digits in the long term – WKN: 840400 – ISIN: DE0008404005 Source: