In This Article:
Amidst a backdrop of global economic uncertainties and mixed performances across major indexes, the Swedish market continues to offer intriguing opportunities for dividend-seeking investors. As we approach July 2024, understanding the resilience and potential growth of dividend stocks becomes particularly pertinent in navigating these volatile market conditions.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Betsson (OM:BETS B) | 5.82% | ★★★★★☆ |
| Loomis (OM:LOOMIS) | 4.50% | ★★★★★☆ |
| Nordea Bank Abp (OM:NDA SE) | 8.74% | ★★★★★☆ |
| Zinzino (OM:ZZ B) | 3.92% | ★★★★★☆ |
| HEXPOL (OM:HPOL B) | 3.29% | ★★★★★☆ |
| Duni (OM:DUNI) | 4.90% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.20% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.28% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 4.81% | ★★★★★☆ |
| Bahnhof (OM:BAHN B) | 3.72% | ★★★★☆☆ |
Click here to see the full list of 20 stocks from our Top Swedish Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
Axfood
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Axfood AB operates in the food retail and wholesale sectors primarily in Sweden, with a market capitalization of approximately SEK 57.32 billion.
Operations: Axfood AB's revenue is primarily derived from its Dagab, Willys, Snabbgross, and Home Purchase segments, generating SEK 75.09 billion, SEK 44.82 billion, SEK 5.38 billion, and SEK 7.67 billion respectively.
Dividend Yield: 3.2%
Axfood offers a steady dividend yield of 3.2%, which, while reliable, falls below the top quartile of Swedish dividend payers. Over the past decade, dividends have shown stability and growth, supported by a sustainable payout ratio of 76.8% and a cash payout ratio of 39.3%. Earnings have increased annually by 8.6% over five years with future growth expected at about 9.89% per year, ensuring continued support for dividend payments amidst recent management changes and consistent sales growth in its quarterly reports.
Nordic Paper Holding
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Nordic Paper Holding AB operates globally, specializing in the production and sale of natural greaseproof and kraft paper, with a market capitalization of SEK 3.77 billion.
Operations: Nordic Paper Holding AB generates revenue primarily through two segments: Kraft Paper, which brought in SEK 2.23 billion, and Natural Greaseproof, contributing SEK 2.19 billion.
Dividend Yield: 7.1%
Nordic Paper Holding, while trading at 66.7% below its fair value, shows a promising dividend yield of 7.1%, placing it in the top 25% of Swedish dividend payers. The dividends are supported by earnings and cash flows with payout ratios of 68.3% and 78% respectively, indicating reasonable coverage despite a recent cut to SEK 4 per share as of May 2024. However, its dividend history is short and unstable, with only three years of payments amidst high debt levels.