Stock Analysis

3 Dividend Stocks On SIX Swiss Exchange Yielding Up To 5%

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The Switzerland market experienced a day of mixed performance, with the benchmark SMI recovering most of its early losses despite some notable declines among major stocks. In this context, dividend stocks can offer a stable income stream and potential for growth even in fluctuating markets. Here are three dividend stocks on the SIX Swiss Exchange yielding up to 5%.

Top 10 Dividend Stocks In Switzerland

NameDividend YieldDividend Rating
Cembra Money Bank (SWX:CMBN)5.27%★★★★★★
St. Galler Kantonalbank (SWX:SGKN)4.42%★★★★★★
LEM Holding (SWX:LEHN)4.43%★★★★★☆
EFG International (SWX:EFGN)4.73%★★★★★☆
Julius Bär Gruppe (SWX:BAER)5.55%★★★★★☆
Helvetia Holding (SWX:HELN)4.96%★★★★★☆
Holcim (SWX:HOLN)3.68%★★★★★☆
DKSH Holding (SWX:DKSH)3.40%★★★★★☆
Banque Cantonale Vaudoise (SWX:BCVN)4.65%★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)4.69%★★★★★☆

Click here to see the full list of 25 stocks from our Top SIX Swiss Exchange Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Berner Kantonalbank (SWX:BEKN)

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

Overview: Berner Kantonalbank AG provides banking products and services to private individuals and corporate customers in Switzerland, with a market cap of CHF 2.18 billion.

Operations: Berner Kantonalbank AG generates CHF 532.28 million in revenue from its banking products and services offered to private individuals and corporate customers in Switzerland.

Dividend Yield: 4.2%

Berner Kantonalbank offers a reliable dividend, with payments growing steadily over the past 10 years and currently yielding 4.24%, slightly below the top tier in the Swiss market. The bank's earnings have grown at 4.3% per year over the past five years, supporting its reasonable payout ratio of 52.8%. Trading at 35.7% below estimated fair value, it presents a potentially attractive investment for dividend-focused investors despite some uncertainties about long-term sustainability.

SWX:BEKN Dividend History as at Aug 2024

Burkhalter Holding (SWX:BRKN)

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

Overview: Burkhalter Holding AG, with a market cap of CHF 927.74 million, provides electrical engineering services to the construction sector in Switzerland through its subsidiaries.

Operations: Burkhalter Holding AG generates CHF 1.16 billion in revenue from its electrical engineering services for the Swiss construction sector.

Dividend Yield: 5.1%

Burkhalter Holding's dividend payments have been volatile and unreliable over the past decade, with a high payout ratio of 89.9%. Despite this, dividends are covered by both earnings and cash flows (87.1%). Earnings grew by 34.7% last year and are forecasted to grow at 6% annually. The current dividend yield of 5.09% places it in the top quartile for Swiss dividend payers, though its unstable track record may concern some investors.

SWX:BRKN Dividend History as at Aug 2024

Meier Tobler Group (SWX:MTG)

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

Overview: Meier Tobler Group AG, with a market cap of CHF291.80 million, operates as a trading and services company specializing in heat generation and air conditioning systems.

Operations: Meier Tobler Group AG generates revenue primarily from its Distribution segment, which accounts for CHF404.27 million, and its Service segment, contributing CHF104.01 million.

Dividend Yield: 5%

Meier Tobler Group's dividend yield of 5.03% ranks in the top 25% among Swiss dividend payers, yet its payments have been volatile over the past decade. Although dividends are covered by earnings with a payout ratio of 76.3%, they are not well supported by free cash flows, which is concerning given the high cash payout ratio of 179.3%. Recent earnings showed a decline in net income to CHF 8 million from CHF 15.97 million year-over-year, impacting financial stability.

SWX:MTG Dividend History as at Aug 2024

Key Takeaways

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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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