Frankfurt/Main
Foreign investors dominate Germany’s major stock exchange groups – and collect around half of the dividends. In 2023, they held the majority of shares in 21 of the 40 DAX companies, according to new research by accounting and consulting firm EY. On average, German investors held just a third of DAX shares (33.6 percent). Around every second of paper (51) was held by foreign investors; the rest of the shares could not be allocated.
North American investors in particular have significantly increased their exposure to the leading German index: from 17.4 percent in 2010 to 23.5 percent recently. According to EY, the share of European investors has fallen slightly over the period to 22.6 percent.
According to EY, as of December 31, 2023, only nine DAX companies had at least half of their shares held by domestic investors German TelecomBASF, German Bank And BMW. For many companies, not all shares can be clearly allocated to the domestic and foreign categories, the authors wrote. The values quoted are therefore minimal information.
Only a minority of DAX dividends flow into German accounts
The strong weight of foreign shareholders also means that large amounts of dividends flow abroad. Of the 53.8 billion euros that the DAX companies According to the study, at least 26 billion euros went to investors abroad in the past financial year, and 22.2 billion to investors from Germany.
Mercedes-Benz made the highest transfers abroad, it was said. Dividends of 3.4 billion euros went to foreign investors and 2.1 billion to German investors. Other major dividend payers also Dax such as alliance and Siemens The lion’s share went to investors abroad.
More influence on companies
Henrik Ahlers, CEO of EY, sees the strong involvement of foreign investors in the DAX as “proof of the continuing high level of confidence in the German economy.” But with the strong weight of foreign shareholders comes an increasing influence on corporate decisions: “And the interests of an American investor can certainly differ from those of a German investor,” says Ahlers. This means that corporate strategies are even more closely aligned with the global competitive situation – and less concerned with the sensitivities in Germany.
The large share of American investors in the DAX is not new. The capital market in Germany is considered relatively weak.
On average, around 12.3 million people had stocks, stock funds and/or exchange-traded index funds (ETFs) in their portfolio in 2023, the German Stock Institute calculated. Based on the local population aged 14 and over, only around one in six people were involved in the stock market.
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