It is a known fact that Maltese investors like receiving some form of distribution on their investment irrespective of the fact that in reality it does not make a difference to their total return. This is because theoretically once the shares go ex-div, the share price should fall by the amount of the dividend.

Nonetheless it is useless arguing this point. If an investor feels more comfortable psychologically receiving some form of payment, his advisor should always propose investments that meet his expectations. After all he is the client.

Arguing in favour of shareholders who want to earn a dividend, these constituents are looking more attractive as the cash pile of Europe companies has continued to increase, increasing the probability of share buyback and higher distributions to shareholders through dividends.

With the bond market offering a much lower return than it has done in the past, dividend paying stocks are now looking even more attractive for shareholders.

Also, with the recent drawdown in the equity markets, from a technical perspective, the entry point into equities is even more attractive.

5 attractive dividend paying stocks in the DAX Index

Allianz SE (Price €142.00, Estimated dividend yield 5.04%)

Allianz SE is a German multinational financial services company headquartered in Munich. Its core businesses are insurance and asset management. As of 2014, it is the world's largest insurance company, the-largest financial services group and the largest company according to a composite measure by Forbes magazine, as well as the largest financial services company when measured by 2013 revenue.

Siemens AG (Price €94.02, Estimated dividend yield 3.88%)

Siemens AG is a German multinational conglomerate company headquartered in Berlin and Munich. It is the largest engineering company in Europe. The principal divisions of the company are Industry, Energy, Healthcare, and Infrastructure & Cities, which represent the main activities of the company. The company is a prominent maker of medical diagnostics equipment and its medical health-care division, which generates about 12 percent of the company's total sales, is its second-most profitable unit, after the industrial automation division.

BASF SE (Price €81.74, Estimated dividend yield 3.64%)

BASF SE is the largest chemical producer in the world and is headquartered in Ludwigshafen, Germany. BASF originally stood for Baden Aniline and Soda Factory. Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock Exchange.

Deutsche Post RG (Price €26.33, Estimated dividend yield 3.57%)

Deutsche Post AG, operating under the trade name Deutsche Post DHL, is the world's largest courier company. With its headquarters in Bonn, the corporation has 467,088 employees (FTE 421,270) in more than 220 countries and territories worldwide. Deutsche Post is the successor to the German mail authority Deutsche Bundespost, which was privatized in 1995. Deutsche Post has significantly expanded its business area through acquisitions. Deutsche Post is listed in the DAX stock market index.

BMW AG (Price €98.46, Estimated dividend yield 3.51%)

BMW AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2014, the BMW Group produced 2,117,965 automobiles and approximately 120,000 motorcycles across all of its brands. BMW is part of the "German Big 3" luxury automakers, along with Audi and Mercedes-Benz, which are the three best-selling luxury automakers in the world.

Kristian Camenzuli isInvestment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice.  

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