03.05.2025

Stock Recommendations for May 2025: Weighing Opportunities and Risks

The current market situation offers diverse opportunities, particularly in the areas of dividend stocks, technology, and specific sectors. At the same time, geopolitical risks require a selective approach to stock selection.

Buy Recommendations

Strong Dividend German Stocks

  • Fielmann Group (FIE) and Verbio (VBK) are counted among the top performers, known for their stable dividends.
  • In the real estate sector, Vonovia Finance (VNA) and LEG Immobilien (LEG) offer attractive returns.
  • Individual stocks can achieve dividend yields of up to 9.95%, but some ex-dividend dates may have already passed.

Tech Giants with AI Potential

  • Microsoft, Alphabet, and Amazon are prime candidates to surpass NVIDIA in market capitalization, driven by investments in cloud computing and AI.
  • Apple excels with a strong product pipeline, while Tesla focuses on autonomous driving technologies.

Interest-Insensitive Sectors

Lower interest rates benefit real estate stocks like Vonovia as well as cyclical values such as Wacker Neuson (WAC) or Bilfinger (GBF).

Sell/Short Candidates

  • Overvalued tech stocks like NVIDIA could come under pressure due to geopolitical tensions or profit corrections.
  • Companies with high debt are risky in times of potential interest rate volatility.

Strategic Insights for May 2025

Geopolitical uncertainties require a diversified investment strategy that combines defensive dividend stocks with growth-oriented tech shares. Morningstar emphasizes the importance of forward dividend yields over 1.5%, paired with stable operational performance, an approach relevant to companies like LEG Immobilien or Heidelberg Materials.