The shares in the Dax are mostly in the hands of foreign investors. Investors from Germany own only a third of the securities.
(Photo: dpa)
Skeptics, warners and social politicians may ask themselves: How can it be that German corporations are paying out record dividends in these times? In times characterized by an energy shortage and an economic downturn.
With their dividends of probably 54 billion euros, the 40 companies in the Dax will let their shareholders participate in the profits of 2022 next spring. These will be lavish, probably just as high as in the record year 2021. In this respect, record high dividends are justified for the time being.
But it is also true that companies have to weigh up their high profits against the looming crises. This is especially true for energy-intensive companies such as BASF.
One thing is certain: there will be a new edition of the socio-political debate on how such dividends go together with the threat of recession and short-time work benefits. In this respect, a lot of prudence and caution is required at the corporate headquarters in the next few weeks when it comes to the dividend proposal.
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But: Dividends are not handouts that are given away when money is left over. Shareholders are entitled to dividends because after purchasing shares they own a small part of the company. Employees who find dividends unfair to shareholders because they do not work for the company have the opportunity to become shareholders as well. Often even at reduced rates that are only available to employees.
Social participation: Politicians should make more possible for German shareholders
Social politicians should also know that becoming a shareholder in a company is a good opportunity not only for the rich, but for broad sections of society to share in the billions in profits from Siemens, Mercedes, Porsche and Co. That is the good answer of modern capitalism to the failed socialism in many states: public property in the hands of millions of shareholders.
>> Read also: Role model France and Sweden – Deutsches Aktieninstitut proposes tax-free investment savings accounts
Unfortunately, German shareholders have little of it. Because the shares in the Dax are mostly, 53 percent, in the hands of foreign investors. Investors from Germany own only a third of the securities. A good 15 percent cannot be assigned geographically.
It should be the task of our politicians to change this, instead of branding the high profit distributions to shareholders as capitalism’s greed.
More: 54 billion euros – Dax companies pay record dividends