eToro is an excellent place to trade German stocks listed on Frankfurt Stock Exchange, and there are about 30 large-cap stocks that you can choose from. It’s worth noting that German economy is Europe’s first and world’s fourth biggest economy (after US, China and Japan) and DAX index (Deutscher Aktienindex) is one of the most important too, with solid yearly growth of 14%. Investing in German stock market is like drinking a quality pilsener – just like you can’t go wrong with Bavarian beer, investing in company from Frankfurt Stock Market is always a good idea. Here are my top 4 stocks from Germany available on eToro that would bring you profits in 2018
4. Deutsche Boerse – $db1.de
“Deutsche Boerse” means “German Stock Market” – so these are shares of German Stock Market issued on German Stock Market. Inception!
- German economy is largest economy in Europe and this is reflected in large capitalization of Deutsche Boerse, one of the largest markets in the world and one of the oldest – founded in 1585. German companies pay fees for being listed there and that provides main flow of earnings and is inexhaustible supply of income. That’s why this is very stable stock that will always profit!
- 1 yr-return for $db1.de is 29,71%, and they pay some dividends. German Bull (or maybe panzer) doesn’t slow, so 2018 should very good year overall!
Hold it long term (at least 2 months) and profit from good condition of German economy and EU as well. As always with stocks, go x1 for the best results.
3. SAP – $sap.de
SAP makes enterprise software used to manage business operations like accounting, CRM, logistics and more. It’s very popular in Europe and if you work in finance, you are very likely worked with SAP software. This company has regional offices in 130 countries and is also listed on NYSE.
- Besides $CRM this is world’s biggest CRM developer, so they have a lot of customers: 335 000 companies worldwide, and most of them pay monthly fees for using software on their cloud. Thanks to such big customer base, there is no risk that they will go suddenly out of business.
- They also aim to compose 1% of its workforce with autistic people by the year 2020. Not a joke, really.
$SAP is a very good performer, as its shares have 1-yr return of 16.72% and constantly growing year to year.
2. Allianz – $alv.de
If you live in Europe, you surely know Allianz brand, because this company has offices in every European country.
- It’s the world’s largest insurance company and the largest financial services group according to Forbes. They employ 147,000 employees in 70 countries, so it’s real juggernaut and there is zero risk in investing in this business, because it’s too big to fall and can’t be target of hostile takeover.
- It has more than 85 million customers worldwide and its services include property, life and health insurance. These highly profitable financial operations are always in demand and yield as much as €122 billion revenue, with healthy €10 bln income.
- This gives it excellent return of 24.45%, reinforced by one of the biggest dividend for German market, 3,79% monthly. That beats $dax performance (14,3%) and at this company size it is excellent result. A real gem among large cap stocks!
1. Commerzbank – $cbk.de
Commerzbank is one of my favorite bank stock and I suggest you to buy it. Here’s why:
- Commerzbank is Germany’s second-largest bank, and you can’t go wrong with banking stocks, especially in times when economy blooms. They employ 49 000 employees and have 15 million of personal and business accounts in 50 countries. They have very sustainable, though quite traditional business model (it’s an old bank, est. 1870), that gives them steady flow of cash and $15.94 bn in revenue.
- In 2016, it generated gross revenues of 9.4 billion Euros and it’s one of the favorite stock of Frankfurt Stock Market investors. 1-Year Change of $cbk.de is 66,8% and this is the best large cap return on $Ger30 currently. Can it fly this much in 2018? I bet!
Buy it with reasonable (read x1) leverage and enjoy profits from this reputable German bank!
Do you have other favorites companies listed on DAX? Let me know in comments below!