The best German stocks to buy now come from a wider range of industrial sectors than we might have seen in the past. Germany is a leading economic power in Europe and the world, and home to some of the largest and most successful businesses in the world.
Germany is an attractive destination for investors looking to get involved in blue-chip companies however, with so many great German companies out there, it can be tough to know where to start when looking for the best investment opportunities.
The companies featuring on this list of best German stocks to invest in are leaders in their respective industries and offer investors great growth potential. That being said, potential is not always delivered upon, so you will still want to do your own due diligence to ensure you agree!
Best German Stocks To Invest In
If you’re looking for the best German stocks to invest in, from the opinion of our team, read on for our top 9 picks.
1. Bayerische Motoren Werke AG (BMW-DE:XETRA)
BMW is one of the world’s leading luxury car manufacturers and is headquartered in Munich, Germany. The company has a strong reputation for producing high-quality cars and has a large global customer base.
BMW is also expanding its footprint beyond just luxury cars and now offers a range of electric vehicles (EVs), motorcycles, and financial services.
The company’s EVs have been particularly successful, with sales growing rapidly in recent years. This is in line with the global trend towards electrification of the automotive industry and BMW is well-positioned to benefit from this shift.
Investors are also attracted to BMW stock because of its strong dividend yield. The company has a long history of paying regular dividends and currently offers a yield of 2.8%.
2. Siemens (SIE-GR:XETRA)
Siemens is a leading technology company that provides a range of products and services in the areas of electrification, automation, and digitalization. The company is headquartered in Munich, Germany and has operations in over 200 countries.
Siemens is a diversified company with businesses in a number of different industries including healthcare, energy, transportation, and manufacturing. This gives the company exposure to a variety of growth trends and makes it less dependent on any one sector.
The company has also been active in the renewable energy space and has committed to being carbon-neutral by 2030. This focus on sustainability is likely to be increasingly important to investors in the years ahead.
3. Daimler (DAI-DE:XETRA)
Daimler is another leading German automotive company and is the parent company of Mercedes-Benz. The company has a long history dating back to 1886 and is one of the world’s most recognized luxury car brands.
Daimler has been investing heavily in EVs in recent years and plans to have over 10 different models available by 2022. This focus on EVs is in line with global trends and should help the company to continue growing in the future.
The company is also expanding its business beyond just cars and now offers a range of financial services. This provides another source of revenue and helps to diversify the company’s earnings.
4. Telekom (DTEGY-PK:OTC Pink)
Telekom is a leading telecommunications company with operations in over 50 countries. The company is headquartered in Bonn, Germany and offers mobile, fixed-line, and broadband services.
Telekom has been investing heavily in its network in recent years and is now a leading provider of 5G services. This investment should help the company to continue growing in the future as 5G becomes more widespread.
The company is also focusing on expanding its customer base beyond just traditional telecommunications services. This includes offering a range of digital content and cloud-based services.
5. BASF (BAS-DE:XETRA)
BASF is the world’s largest chemical company and is headquartered in Ludwigshafen, Germany. The company has operations in over 80 countries and serves a wide range of industries including agriculture, automotive, construction, and healthcare.
BASF has a diversified product portfolio and is constantly innovating to develop new products and applications. This allows the company to offer solutions for a wide range of industries and helps to insulate it from any one particular economic cycle.
The company is also well-positioned to benefit from the global trend towards sustainability. This is evidenced by its commitment to reducing greenhouse gas emissions by 20% by 2030.
6. Adidas (ADS-DE:XETRA)
Adidas is a leading global manufacturer of athletic footwear and apparel and is a strong part of the German stock market.
The company is headquartered in Herzogenaurach, Germany and has operations in over 150 countries.
Adidas has been growing rapidly in recent years, driven by strong demand for its products. The company’s focus on innovation has helped it to develop new product categories and enter new markets.
Adidas is also benefiting from the global trend towards health and fitness. This is driving growth in the athletic footwear and apparel market and Adidas is well-positioned to benefit from this trend.
7. Continental (CON-DE:XETRA)
Continental is a leading global supplier of automotive components and systems. The company is headquartered in Hanover, Germany and has operations in over 50 countries.
Continental has been investing heavily in new technologies in recent years, including autonomous driving and electric vehicles. This focus on innovation should help the company to continue growing in the future as these technologies become more widespread.
The company is also benefiting from the global trend towards electrification of vehicles. This is driving demand for Continental’s products and should help the company to achieve strong growth in the coming years.
8. SAP (SAP-DE:XETRA)
SAP is a leading global provider of enterprise software and is headquartered in Walldorf, Germany. The company has operations in over 180 countries and serves a wide range of industries including healthcare, manufacturing, and retail.
SAP has been investing heavily in cloud-based solutions in recent years and this is starting to pay off. The company’s cloud revenue grew by 28% in 2019 and SAP is now the third largest provider of cloud infrastructure services.
The company is also benefiting from the global trend towards digitalization. This is driving demand for SAP’s software products and services and should help the company to continue growing in the future.
9.Deutsche Bank (DBK-DE:XETRA)
Deutsche Bank is a leading global bank and is headquartered in Frankfurt, Germany. The bank has operations in over 70 countries and offers a wide range of banking and financial services.
Deutsche Bank has been going through some tough times recently, but it is starting to turn things around. The bank has been streamlining its operations and is now focused on its core businesses.
The bank is also benefiting from the global trend towards digitalization. This is driving demand for Deutsche Bank’s products and services and should help the company to return to growth in the future.
Most Important German Stocks Sectors For Economic Prosperity
The best German stocks come from a range of industrial sectors, as the European powerhouse continues to perform across a wide variety of segments. When you are trading or investing in stocks, you will need to keep an eye on sector trends to give you an edge on the fundamentals.
All German listed stocks, are regulated by BaFin; widely recognised as a Tier 1 regulator with some of the highest compliance policies in the World. Without further ado, some of the most important German stocks and industrial sectors are:
–Automotive:
with companies like Volkswagen, BMW, and Daimler, Germany is one of the world’s leading automotive nations.
–Chemicals:
Germany is home to many of the world’s leading chemical companies, such as BASF, Bayer, and Henkel.
–Electronics:
Germany is a leading producer of electronic goods, with companies such as Siemens, Bosch, and Philips having a strong presence in the country.
–Energy:
As a major player in the global energy market, Germany remains strong in energies, with companies like E.ON and RWE being two of the largest energy providers in the world.
–Engineering:
Germany is home to many of the world’s leading engineering firms, such as Siemens, Bosch, and ThyssenKrupp.
–Financial services:
One of the leading financial services nations in the world, with companies such as Deutsche Bank, Commerzbank, and Allianz being headquartered in the country.
–Industrial machinery:
Germany is a leading producer of industrial machinery, with companies such as Siemens, Bosch, and ThyssenKrupp being major players in the global market.
–Retail:
Many of the world’s leading retail companies, such as Aldi, Metro, and Lidl are happy to call Germany home.
–Telecommunications:
Germany is a leading telecommunications nation, with companies such as Deutsche Telekom, Vodafone, and Telefonica Deutschland being headquartered in the country.
–Transportation:
Transportation remains an important sector to Germany, with companies such as Deutsche Bahn, Lufthansa, and DHL being headquartered in the country.