Top Dividend Stocks On The Swedish Stock Exchange August 2024

As global markets grapple with economic uncertainties and shifting investor sentiment, the Swedish stock market has shown resilience amid broader European declines. In this environment, dividend stocks offer an attractive option for investors seeking stable income and potential long-term growth. In this article, we explore three top dividend stocks on the Swedish stock exchange as of August 2024.

Top 10 Dividend Stocks in Sweden

Click here to see the full list of 21 stocks from our Top Swedish Dividend Stocks screener.

Let’s take a closer look at some of our picks from the companies we researched.

Simply Wall St dividend rating: ★★★★☆☆

Overview: Bahnhof AB (publ) is active in the internet and telecommunications sectors in Sweden and Europe, with a market capitalization of SEK 5.33 billion.

Activities: Bahnhof AB (publ) generates its revenue primarily from the Retail Market segment, which contributes SEK 1.30 billion, and the Corporate Market segment, excluding Typhoon, which contributes SEK 606.24 million.

Dividend yield: 4%

Bahnhof AB’s dividend payments have been stable and growing over the past 10 years, but its current payout ratio of 97.5% indicates that dividends are not well covered by earnings. Despite a solid history, the dividend yield of 4.04% is slightly below the market high. Recent earnings have shown growth with Q1 revenue of SEK 491.38m and net income of SEK 56.17m, supporting cash flow coverage for dividends despite high earnings payout ratios.

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Simply Wall St dividend rating: ★★★★☆☆

Overview: FM Mattsson AB (publ) develops, manufactures and sells taps and related products for bathrooms and kitchens in several European countries, with a market capitalization of SEK 2.18 billion.

Activities: FM Mattsson AB (publ) generates revenues from two main segments: SEK 783.23 million from international markets and SEK 1.12 billion from the Nordic countries.

Dividend yield: 4.8%

FM Mattsson’s dividend payments are well covered by both earnings (payout ratio: 86.3%) and cash flow (cash payout ratio: 49.5%). Despite a dividend history of only six years, payments are stable and growing, placing the company in the top 25% of Swedish market dividend payers with a yield of 4.85%. However, the recent first quarter profit showed a decline with revenues of SEK 493.4 million and net income of SEK 28.2 million, which may impact future payments.

Simply Wall St dividend rating: ★★★★☆☆

Overview: Loomis AB (publ) provides solutions for the distribution, payments, processing, storage and recycling of cash and other valuables with a market capitalization of SEK 23.44 billion.

Activities: Loomis AB (publ) generates revenues primarily from its operations in Europe and Latin America (SEK14.32 billion), the United States of America (SEK15.45 billion) and Loomis Pay (SEK77 million).

Dividend yield: 3.7%

Loomis’ dividend payments, while covered by earnings (payout ratio: 59.4%) and cash flow (cash payout ratio: 26.3%), have been volatile over the past decade. The company recently reported second-quarter revenue of SEK 7.64 billion and net income of SEK 396 million, representing year-on-year growth. However, with a yield of 3.72%, it lags behind Sweden’s largest dividend payers. Recent share buybacks totaling SEK 199.75 million could impact future capital allocation for dividends.

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This article from Simply Wall St is general in nature. We comment solely on historical data and analyst forecasts, using an objective methodology. Our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. We aim to provide you with a long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in the shares mentioned.

The companies discussed in this article include OM:BAHN B OM:FMM B and OM:LOOMIS.

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