Stock Analysis

Three Solid Dividend Stocks On SIX Swiss Exchange Yielding Up To 4.1%

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The Switzerland stock market recently experienced a downturn, reflecting broader European trends amid concerns over global economic growth and disappointing earnings reports from key players in both the U.S. and Europe. In such uncertain times, investors might find comfort in dividend stocks, which can offer potential for steady income and relative stability.

Top 10 Dividend Stocks In Switzerland

NameDividend YieldDividend Rating
Cembra Money Bank (SWX:CMBN)5.33%★★★★★★
St. Galler Kantonalbank (SWX:SGKN)4.36%★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)4.62%★★★★★★
Julius Bär Gruppe (SWX:BAER)5.48%★★★★★☆
EFG International (SWX:EFGN)4.31%★★★★★☆
Compagnie Financière Tradition (SWX:CFT)4.20%★★★★★☆
Helvetia Holding (SWX:HELN)4.82%★★★★★☆
Holcim (SWX:HOLN)3.35%★★★★★☆
DKSH Holding (SWX:DKSH)3.29%★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)4.72%★★★★★☆

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

Let's dive into some prime choices out of the screener.

Compagnie Financière Tradition (SWX:CFT)

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

Overview: Compagnie Financière Tradition SA is a global interdealer broker dealing in both financial and non-financial products, with a market capitalization of CHF 1.11 billion.

Operations: Compagnie Financière Tradition SA generates revenue across three key regions: CHF 350.89 million from the Americas, CHF 271.44 million from Asia-Pacific, and CHF 431.78 million from Europe, the Middle East, and Africa.

Dividend Yield: 4.2%

Compagnie Financière Tradition (CFT) offers a modest dividend yield of 4.2%, slightly below the top Swiss dividend payers. Despite this, CFT has demonstrated a commitment to stable and reliable dividends, maintaining consistent payments over the last decade with no dilution in the past year. The dividends are well-supported by earnings and cash flows, with payout ratios of 47.2% and 40.8% respectively, ensuring sustainability. However, investors should note CFT's share price has shown high volatility recently.

SWX:CFT Dividend History as at Jul 2024

Liechtensteinische Landesbank (SWX:LLBN)

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

Overview: Liechtensteinische Landesbank Aktiengesellschaft operates as a bank offering a range of financial products and services across Liechtenstein, Switzerland, Germany, Austria, and other international markets, with a market capitalization of approximately CHF 2.29 billion.

Operations: Liechtensteinische Landesbank generates revenue through its Retail & Corporate Banking segment at CHF 273.32 million and International Wealth Management at CHF 241.19 million.

Dividend Yield: 3.6%

Liechtensteinische Landesbank (LLBN) has a history of fluctuating dividend payments over the past decade, reflecting an unstable dividend track record. Despite this, LLBN's dividends are currently supported by earnings with a payout ratio of 50.3%, and this trend is expected to continue over the next three years. The bank’s dividend yield stands at 3.6%, which is below the top quartile of Swiss dividend stocks at 4.23%. Additionally, LLBN trades at a 20.6% discount to its estimated fair value and has seen annual earnings growth of 12.7% over the past five years, suggesting potential undervaluation relative to its financial performance.

SWX:LLBN Dividend History as at Jul 2024

TX Group (SWX:TXGN)

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

Overview: TX Group AG is a Swiss company that operates a network of platforms offering information, orientation, entertainment, and support services, with a market capitalization of CHF 1.72 billion.

Operations: TX Group AG's revenue is generated through various segments, with Tamedia contributing CHF 446.40 million, Goldbach CHF 274.70 million, 20 Minutes CHF 118.40 million, TX Markets CHF 133.80 million, and Groups & Ventures CHF 159.40 million.

Dividend Yield: 3.8%

TX Group recently turned profitable, supporting its dividend sustainability with an earnings coverage of 86.9% and a cash flow payout ratio of 42.1%. However, the company's dividend history over the past decade has been inconsistent and volatile, showing both increases and significant fluctuations. Currently, TXGN's dividend yield is 3.81%, which is below the top quartile of Swiss dividend stocks at 4.23%. The stock is also trading significantly below its estimated fair value by 73.6%.

SWX:TXGN Dividend History as at Jul 2024

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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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