DAX comparison puts Telekom in first place

In 2011, the 30 DAX companies will probably pay about EUR 25 billion in dividends. That means a 31-percent increase in dividend payments compared to the previous year.

The highest dividend figure, more than EUR three billion, is paid by Deutsche Telekom – followed by utilities E.on and RWE. Assuming shareholders accept a motion to this effect, Deutsche Telekom will pay them the dividend immediately after the shareholders’ meeting on May 12, 2011, probably starting May 13, 2011.

The average dividend yield for companies in the DAX, the index of Germany’s most important listed firms, is at a pre-tax average of 3.5 percent, which is an attractive form of investment since interest rates are currently very low. Even after the considerable rise in the Deutsche Telekom share price since March 2011, the dividend yield is one of the most attractive among all DAX companies and lies well above this year’s low interest rates. It is also important for shareholders in Germany that the dividend paid is tax-free and no withholding tax has to be paid.

In addition, Deutsche Telekom is a pioneer in the DAX with its clear statement regarding the planned dividend from 2010 till 2012. A total of more than EUR ten billion is to be paid in dividends and share buy-backs. In this way, investors will have an appropriate share in the success of the company.