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Dax Dividends Face Decline Amid Economic Pressures
2024-12-23 11:00:09
Business
Economy

Dax Dividends Face Decline Amid Economic Pressures

In 2024, dividend payments from the 90 companies in the Dax and MDax are set to decrease by 4%, totaling 59 billion euros. This decline is primarily attributed to challenges within the automotive sector, where giants like BMW and Volkswagen will contribute 4 billion euros less to the overall payout.

Volkswagen, facing additional pressures from plant closures and job reductions, may further reduce its dividends. Despite this downturn, 40 Dax companies are on track to nearly reach a record payout of 52.2 billion euros.

According to Dekabank, 23 Dax and 28 MDax companies will increase their distributions, while 9 Dax and 4 MDax companies will implement cuts. Allianz leads the way with a substantial payout of 5.9 billion euros.

However, notable declines are also expected from BASF and Airbus, reflecting the broader economic challenges.

Related news on that topic:

Market Movements Amid Inflation and Interest Rate Shifts

Global markets are experiencing volatility driven by the Federal Reserve's revised interest rate forecasts, reducing expected cuts from seven to two. This shift has unsettled investors, causing sell-offs, particularly in the DAX, which has dipped below 20,000 points. The triple witching day, when multiple futures and options expire, has further intensified market fluctuations. US inflation data, showing a surprising decline, has provided some relief, boosting indices like the Dow Jones and Nasdaq. Meanwhile, the euro remains near a two-year low due to the dollar's strength. Oil prices have fallen, reflecting market concerns. Additionally, Deutsche Bank faces financial strain from legal issues in Poland, and Volkswagen's ongoing labor negotiations continue without resolution. In corporate movements, Covestro exits the DAX, replaced by Fresenius Medical Care, reflecting broader shifts within the German stock index landscape.

Challenges and Opportunities in the Eurozone

The European economic landscape is marked by contrasting scenarios. While Spain is poised for economic growth by 2025, Germany and France face significant structural challenges. Germany's competitiveness issues and the need for public investment hinder its recovery, despite fiscal leeway. Meanwhile, France grapples with political instability and fiscal constraints, impacting its economic stability. These "mirror crises" in the EU's major economies complicate unified strategic responses. In contrast, Southern Europe, particularly Spain and Italy, shows resilience, with economic activity surpassing expectations. This divergence presents an opportunity for smaller EU nations and institutions to assume leadership roles. The need for decisive action is emphasized amid global challenges, including geopolitical tensions and the potential return of Donald Trump to the U.S. presidency. The EU must navigate these complexities to maintain competitiveness and cohesion.

Read 4 more recent news on this topic

The press radar on this topic:

gmx
23. Dezember 2024 um 04:02

Lower dividends for Dax shareholders

Economy
Finance
The dividend payments of the 90 companies in the Dax and MDax will decrease by 4% to 59 billion euros in 2024. The main reason is the crisis in the automotive industry, where BMW and Volkswagen are paying out 4 billion euros less. Volkswagen is under pressure to cut the dividend more due to plant closures and job cuts. Nevertheless, the 40 Dax companies almost reach the record value of 52.2 billion euros. According to Dekabank, 23 Dax companies and 28 MDax companies are increasing their distri..
tz
23. Dezember 2024 um 04:01

Lower dividends for Dax shareholders

Economy
Finance
Dax dividends in 2024 will be just under 4% lower at 59 billion euros; the automotive industry is cutting 4 billion euros; Allianz has the highest payout of 5.9 billion euros; MDax companies are increasing dividends by 7%; the Dax record high of 55 billion euros was narrowly missed; 23 Dax companies are increasing, 9 are keeping dividends stable.
t-online
23. Dezember 2024 um 04:00

Lower dividends for Dax shareholders

Economy
Finance
The total dividend of Dax companies will decrease by 4% in 2024 due to the automotive industry; Allianz pays the highest dividend; The majority of Dax companies increase their dividends; MDax companies pay 6.85 billion euros, 28 out of 50 increase their dividends; 9 Dax companies and 18 MDax companies pay unchanged dividends.
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