Large dividends on German stocks, specifically Deutsche Bank and Commerzbank: Is the investment still profitable?

In the world of German banking, two titans stand out - Deutsche Bank and Commerzbank. Let's take a closer look at their current status.

Deutsche Bank, with a P/E ratio of 5.5, has seen a significant rise this year, with shares up by 20 percent. JPMorgan, a US banking giant, has raised its price target for Deutsche Bank from 19 to 20 euros, maintaining its "Overweight" rating. The BOERSE ONLINE editorial team continues to recommend buying the dividend stock Deutsche Bank, with a price target of 20 euros. Deutsche Bank's dividend yield stands at a substantial 6.76 percent.

On the other hand, Commerzbank's shares have also risen by 20 percent this year, but the German state plans to gradually exit its share in Commerzbank. This announcement has put slight pressure on Commerzbank's share, currently trading with a P/E ratio of 5.7. Commerzbank's dividend yield is currently at 5.70 percent, set to rise to 7.04 percent by 2026.

The chart for Commerzbank looks moderately strong, but the bulls now have to make an effort. US bank JPMorgan believes increased uncertainty about further interest rate developments could lead to more volatility, resulting in higher customer activity in the interest and currency business. BOERSE ONLINE, however, has recently lowered its price target for the Commerzbank share from 17.00 euros to 15.80 euros.

Investors are advised to prefer Deutsche Bank among bank shares, due to the state's exit and the behavior at the 200-day line at Commerzbank. It's important to note that the CEO and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Foerstch, as well as the CEO, Mr. Leon Mueller, have positions in Commerzbank.

As for analyst targets, while BOERSE ONLINE does not explicitly state a current price target for Commerzbank, RBC Capital Markets maintains a "Sector Perform" rating with a target price of 33.00 euros as of September 11, 2025.

In conclusion, both Deutsche Bank and Commerzbank offer substantial dividends for the coming year. However, the recent developments and market trends suggest a more favourable outlook for Deutsche Bank at this time.