As of: February 13, 2024, 5:22 a.m
By: Dieter Tannert
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Attractive interest rates are now being paid again for investments in overnight money.
But you can also achieve an interesting return with the annual dividend with stocks.
Even though some banks are still hesitant to pay their customers higher interest rates for investments, direct banks now offer offers of up to 4% interest on overnight deposits.
But attractive annual distributions, known as dividends, are also possible when investing in stocks.
For example, if you look at the stocks represented in the DAX and their annual distributions, you can find dividend yields of over 10%, as
published on the
comdirect website.
Understanding dividend yield
Corporate dividends represent shareholders' participation in the company's profits.
The dividend yield is calculated by dividing the dividend by the share price.
For example, if a share is worth 100 euros on the stock exchange and you receive a dividend of 6 euros, the return corresponds to 6%.
It is clear that the dividend yield - like the price of the share - is subject to fluctuations.
A number of platforms that provide ongoing information about stocks therefore show current dividend yields.
The last distribution is set in relation to the current stock market price of the share.
Of course, a high dividend yield is of no use if the share price falls so low that you would make a loss despite including the dividend.
For this reason, a special grouping of companies has developed on the financial markets that are referred to as dividend stocks.
More returns possible with dividend stocks © Patrick Pleul/dpa-Zentralbild/dpa/Illustration
What makes a dividend stock?
We generally talk about dividend stocks when we are talking about shares in companies that provide a very good dividend yield and do so over a longer period of time.
However, you should never be guided by the dividend alone, but also consider how much of the profit a company pays out and how much the price fluctuates.
If a company distributes all or a large portion of its profits to its shareholders, the company may be left with no money to invest in its future.
If a company's stock market price fluctuates significantly, the attractive dividend yield can quickly turn into a loss if prices fall.
Such dividend stocks most closely correspond to companies whose business model does not contain significant development potential, but does contain steady income, as is the case, for example, with electricity suppliers or telecommunications companies.
Dividend share Deutsche Telekom with attractive tax-free dividend
Dividends are generally income from capital assets that are subject to the special tax rate of 25%, unless you have a lower tax rate yourself.
However, there is a tax peculiarity in the case of
Deutsche Telekom
shares, for example , where the dividend is currently not taxed.
The reason lies in a system change in the taxation of corporate profits that took place in 2001.
If a distribution is made from certain company reserves, the dividends initially remain tax-free.
However , these reserves of
Deutsche Telekom
will be used up at some point.
When asked, a spokesman for
Deutsche Telekom
told IPPEN.MEDIA that a corresponding tax-free distribution will probably be made in the coming financial years.
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However, the distribution will only remain tax-free if you purchased the share before 2009.
In the event of a later purchase, no tax is initially withheld from the dividend, but the purchase price of the share is mathematically reduced.
Since profits from the sale of shares are now generally taxable, a taxable profit from the sale may arise later.
However, the dividend remains tax-free for now.
This is particularly interesting if you already have capital income that is above the saver allowance of currently 1,000 euros per year.
If you realize that you will later remain below this amount, it may be worthwhile to sell the share, as the capital gain will then be included in the saver's allowance and can remain tax-free.
Anyone who recently bet on a stock like
Deutsche Telekom
could not only enjoy a share return of 3.76% but also an increase in value of 16.7% in 2023.