Slowly, we are approaching the finish line of waiting for dividends. Soon, dividends will be announced that are expected to set new records for companies in the DAX. I am currently keeping an eye out for companies that stand out, especially for you. Undoubtedly, DWS Group, a stock that I mention in the „Deutscher Wirtschaftsbrief,“ is one such company.

DWS Group: Quarterly figures to be announced tomorrow It is no coincidence that I am writing to you today. Tomorrow, the figures for the fourth quarter will be announced. I expect the data to be positive. The group will have achieved a turnover of around 2.6 billion euros in the entire year 2023, which corresponds to a net profit of around 590 million euros. We will have to wait for the exact numbers, but these values must be seen in relation to the market capitalization of around 7.6 billion euros.

This results in a P/E ratio of 13 – which is still not cheap. However, the profits for the current fiscal year are expected to be around 656 million euros. This could result in a P/E ratio of around 11 – which would be more attractive. However, there are voices that believe the estimates are too conservative.

It is said that the P/E ratio is only around 10. The reason for this is the cost reduction that DWS is pursuing and has already partially implemented. This also makes dividends very interesting for investors.

Dividends will increase No one knows yet how high the increases will be. However, the market can take the announcements at face value, quite literally. Because DWS has very high financial reserves. The group has promised a special dividend of up to one billion euros to investors.

That’s where the calculator comes in handy. According to estimates, the regular dividend will be around 2.10 to 2.20 euros. This would result in a regular dividend yield of around 5.5% to 5.7%. That’s already quite impressive.

However, the special dividend could potentially be up to 5 euros per share. Based on current prices, this would result in an additional dividend yield of almost 19%. This effect would be one-time only and the stock prices would likely weaken afterwards – because the funds have been distributed. Nevertheless, keep an eye on DWS Group.