Top Dividend Stocks On The Swedish 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 a compelling option for investors seeking steady income and potential long-term growth. In this article, we will explore three top dividend stocks on the Swedish 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 a couple of our picks from the screened companies.

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Bahnhof AB (publ) operates in the Internet and telecommunications sector across Sweden and Europe, with a market cap of SEK5.33 billion.

Operations: Bahnhof AB (publ) generates revenue primarily from its Retail Market segment, which accounts for SEK1.30 billion, and its Corporate Market segment, excluding Typhoon, which contributes SEK606.24 million.

Dividend Yield: 4%

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

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: FM Mattsson AB (publ) develops, manufactures, and sells water taps and related products for bathrooms and kitchens across several European countries, with a market cap of SEK2.18 billion.

Operations: FM Mattsson AB (publ) generates revenue from two main segments: SEK783.23 million from international markets and SEK1.12 billion from Nordic countries.

Dividend Yield: 4.8%

FM Mattsson’s dividend payments are well covered by both earnings (payout ratio: 86.3%) and cash flows (cash payout ratio: 49.5%). Despite only a six-year dividend history, the payments have been stable and growing, placing it in the top 25% of Swedish market dividend payers with a yield of 4.85%. However, recent Q1 earnings showed a decline with sales at SEK 493.4 million and net income at SEK 28.2 million, potentially impacting future payouts.

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Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Loomis AB (publ) offers solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of SEK23.44 billion.

Operations: Loomis AB (publ) generates revenue 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’s dividend payments, while covered by earnings (payout ratio: 59.4%) and cash flows (cash payout ratio: 26.3%), have been volatile over the past decade. The company recently reported Q2 sales of SEK 7.64 billion and net income of SEK 396 million, showing year-over-year growth. However, with a yield of 3.72%, it lags behind the top Swedish dividend payers. Recent share buybacks totaling SEK 199.75 million might impact future capital allocation for dividends.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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

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