German benchmark stock market index DAX has tipped the 11.000 mark for the first time in its history, boosted by a stronger than anticipated GDP growth of 0.7% and record dividend payouts.
Being heavily reliant on exports, the German economy has improved largely as a result of euro devaluation and lower oil prices.
The DAX, which currently consists of 30 major blue chip companies, has reached its last record in the summer of 2014, when it briefly crossed the 10.000 mark but rapidly dropped within the following months.
The recent record increased are due to the methodology of composing the index, which presupposes the return including dividend pay-outs being reinvested. According to Wall Street Journal estimates, if dividend returns are being deducted, the DAX level is now slightly above 2007 records and below its peak in 2000.
A recent research conducted by the Handelsblatt Research Institute in Cooperation with Commerzbank highlights that DAX companies sat on a surplus of €138bn as of November 2014. With interest rates and record lows, the research predicted a record €30bn in dividend payouts for DAX shareholders.