Stock Analysis

3 Leading Dividend Stocks On SIX Swiss Exchange Yielding Over 4.3%

SWX:BEKN
Source: Shutterstock

The Swiss market demonstrated resilience with a strong performance, as the SMI index rose by 0.93% to close at 12,122.93 after a challenging start. In such an environment, dividend stocks become particularly appealing for investors seeking stable returns; they offer not only income through regular payouts but also potential capital appreciation amidst market fluctuations.

Top 10 Dividend Stocks In Switzerland

NameDividend YieldDividend Rating
Cembra Money Bank (SWX:CMBN)5.11%★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)4.75%★★★★★★
St. Galler Kantonalbank (SWX:SGKN)4.59%★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)4.83%★★★★★★
EFG International (SWX:EFGN)4.66%★★★★★☆
TX Group (SWX:TXGN)4.34%★★★★★☆
Julius Bär Gruppe (SWX:BAER)4.83%★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)3.88%★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)4.71%★★★★★☆
DKSH Holding (SWX:DKSH)3.45%★★★★★☆

Click here to see the full list of 26 stocks from our Top SIX Swiss Exchange Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

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 CHF2.14 billion.

Operations: Berner Kantonalbank AG generates revenue from its banking segment, totaling CHF539.60 million.

Dividend Yield: 4.3%

Berner Kantonalbank offers a stable and reliable dividend yield of 4.31%, placing it in the top 25% of Swiss dividend payers. Over the past decade, dividends have grown steadily with minimal volatility, supported by a reasonable payout ratio of 52.8%. The bank's earnings growth rate of 4.7% annually over five years suggests potential for continued dividend sustainability. Its price-to-earnings ratio of 12.3x is attractive compared to the broader Swiss market average of 21.2x, indicating good value for investors seeking income stability and growth potential in their portfolios.

SWX:BEKN Dividend History as at Oct 2024
SWX:BEKN Dividend History as at Oct 2024

Burkhalter Holding (SWX:BRKN)

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

Overview: Burkhalter Holding AG, with a market cap of CHF961.70 million, offers electrical engineering services to the construction sector in Switzerland through its subsidiaries.

Operations: Burkhalter Holding AG generates revenue of CHF1.18 billion from its electrical engineering services provided to the Swiss construction industry.

Dividend Yield: 4.9%

Burkhalter Holding's dividend yield of 4.91% places it among the top 25% in Switzerland, although its dividend history has been volatile over the past decade. The payout ratio stands at 87.4%, indicating dividends are well-covered by earnings, while a cash payout ratio of 59.7% suggests adequate coverage from cash flows. Recent earnings growth and a fair value trading discount enhance its appeal, despite being dropped from the S&P Global BMI Index in September 2024.

SWX:BRKN Dividend History as at Oct 2024
SWX:BRKN Dividend History as at Oct 2024

Meier Tobler Group (SWX:MTG)

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

Overview: Meier Tobler Group AG is a trading and services company specializing in heat generation and air conditioning systems, with a market cap of CHF313.25 million.

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

Dividend Yield: 4.7%

Meier Tobler Group's dividend yield of 4.68% is among the top 25% in Switzerland, yet its dividends have been volatile over the past decade and are not well-covered by cash flows, with a high cash payout ratio of 179.3%. The company's profit margins have decreased, and recent earnings show a decline in sales and net income. Despite trading at good value compared to peers, large one-off items affect financial results, adding uncertainty to its dividend sustainability.

SWX:MTG Dividend History as at Oct 2024
SWX:MTG Dividend History as at Oct 2024

Seize The Opportunity

Want To Explore Some Alternatives?

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.

Valuation is complex, but we're here to simplify it.

Discover if Berner Kantonalbank might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com