Let the festival begin

German corporations are likely to distribute a little less to their shareholders in 2020. Nevertheless, the season of the Annual General Meetings is cause for joy. The expected dividends of the companies.

This year it is estimated at around 45 billion euros.

NFor many investors, the motto is: wait for payday. Especially in the first six months of each year, German stock corporations distribute a good part of the profits of the previous year to their shareholders. An estimated total of around 45 billion euros this year. This sum will now probably go to the shareholders of the currently 98 companies in the FAZ Index for the 2019 financial year. The dividend round is opened by the technology group Siemens, which is holding its shareholders’ meeting in Munich on Wednesday. The steel giant Thyssen-Krupp had already loaded on Friday, but the shareholders were left empty-handed.

There will not be a new record – according to average estimates, the dividends will fall by a total of 5 percent compared to the previous year (47.3 billion euros). In the previous year it was a similar amount of 47.4 billion euros. But many investors can still look forward to high payments. Only at the respective general meeting do the shareholders actually decide on the amount of the dividends and the proposal that is then submitted to them by the companies. On the next trading day, the dividend will be deducted from the share price. The money must be in the investor’s account no later than three trading days after the meeting.