3 Top Swedish Dividend Stocks To Watch With Up To 8.9% Yield

Amidst a backdrop of global economic uncertainty and fluctuating indices, the Swedish market has shown resilience, drawing attention from dividend-focused investors. In such a volatile environment, identifying reliable dividend stocks with robust yields can provide a steady income stream and potential for capital appreciation.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 22 stocks from our Top Swedish Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

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

Overview: Eolus Vind AB (publ) focuses on developing, constructing, and operating renewable energy assets across several countries including Sweden, Norway, Finland, the United States, Poland, Spain, and the Baltic states with a market cap of SEK1.68 billion.

Operations: Eolus Vind AB (publ) generates revenue primarily from the development, construction, and operation of renewable energy projects across multiple countries.

Dividend Yield: 3.3%

Eolus Vind’s dividend payments have been volatile over the past decade but have shown recent growth. The company declared a SEK 2.25 per share dividend for 2023, covered by both earnings (10.1% payout ratio) and cash flows (55.5% cash payout ratio). Despite trading at a significant discount to its estimated fair value, Eolus faces challenges with declining sales and revenue in Q1 2024, reporting a net loss of SEK 32 million.

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

Overview: Nordea Bank Abp provides banking products and services across Sweden, Finland, Norway, Denmark, and internationally with a market cap of SEK410.43 billion.

Operations: Nordea Bank Abp’s revenue segments include Business Banking (€3.59 billion), Personal Banking (€4.78 billion), Asset and Wealth Management (€1.44 billion), and Large Corporates & Institutions (€2.48 billion).

Dividend Yield: 9%

Nordea Bank Abp’s dividend yield is among the top 25% in Sweden, and its dividends are covered by earnings with a payout ratio of 63.8%. However, the dividend history has been volatile over the past decade. Recent legal issues regarding anti-money laundering have surfaced, but Nordea maintains adequate provisioning. Despite these challenges, Nordea reported stable earnings for Q2 2024 and continues to trade below its estimated fair value by 60.9%.

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

Overview: Solid Försäkringsaktiebolag (OM:SFAB) offers non-life insurance services to private and business clients across several countries including Sweden, Denmark, Norway, Finland, Germany, and Switzerland with a market cap of SEK 1.52 billion.

Operations: Solid Försäkringsaktiebolag (OM:SFAB) generates revenue from three main segments: Product (SEK 320.51 million), Assistance (SEK 351.63 million), and Personal Safety (SEK 435.09 million).

Dividend Yield: 5.4%

Solid Försäkringsaktiebolag’s dividend yield is in the top 25% of Swedish payers. The company’s dividends are well-covered by earnings and cash flows, with payout ratios of 49.1% and 73.7%, respectively. Despite only recently starting dividend payments, SFAB has shown consistent earnings growth, reporting Q2 net income of SEK 40.95 million and a six-month net income of SEK 85.99 million for H1 2024. Recent share buybacks aim to enhance shareholder value further.

Where To Now?

• Get an in-depth perspective on all 22 Top Swedish Dividend Stocks by using our screener here.
• Have you diversified into these companies? Leverage the power of Simply Wall St’s portfolio to keep a close eye on market movements affecting your investments.
• Streamline your investment strategy with Simply Wall St’s app for free and benefit from extensive research on stocks across all corners of the world.

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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.

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