Considering the current scenario of volatile financial markets, the companies paying regular dividends are everyone’s favorites. The German companies Beiersdorf (DE:BEI) and E.ON SE (DE:EOAN) are two such options for investors looking for some extra income.
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Let’s see the two stocks in detail.
Beiersdorf AG
Beiersdorf is a German manufacturer of personal care and self-adhesive products. The company’s brand portfolio includes some well-known names like Nivea, Eucerin, Hansaplast, and more.
The company had a strong performance in its 2022 earnings, which were termed the best in decades. Along with higher sales and profits, the company’s EBIT margin also grew from 13% to 13.2%, and the company expects it to further increase by 50 basis points in 2023. The company’s growing margins and profits paint a nice picture of its sustainable dividend policy.
For 2022, Beiersdorf announced a dividend of €0.70 per share, similar to the last year’s payment. The company has been able to maintain this dividend amount for more than 10 years now. Even though the dividend yield is lower than the industry average, the payments are consistent and well supported by profits and cash flow.
Beiersdorf Share Price Forecast
According to TipRanks, the BEI stock has a Moderate Buy rating. The stock has broad coverage from analysts, with a total of 17 recommendations.
The average price forecast is €118.94, which is slightly lower than the current price by 1.8%.
E.ON SE
E.ON is a leading utility company in Europe, providing electricity, gas, heat, and other related products.
The company reported a good operating performance in its annual results for 2022, despite the challenging situations in the European energy sector. The company’s earnings of €8.1 billion during the year surpassed the forecasted numbers. The company expects this trend to continue in 2023, with expected earnings between €7.8 and €8.0 billion.
Speaking of dividends, the company proposed a dividend of €0.51 per share for 2022, which is 4% higher than the previous amount paid. E.ON is aiming to increase its dividend by 5% annually for the next five years. The company’s current dividend yield is above 4%.
EOAN Stock Price Target
EOAN stock has a Moderate Buy rating on TipRanks based on a total of 13 recommendations, of which seven are Buy. The target price of €11.5 is 1.7% lower than the current price level.
Conclusion
Both EOAN and BEI have reported positive numbers in 2022 and are optimistic about the next set of results. This makes their dividend game even stronger, driven by higher profits and stable cash flows.
