Swiss Dividend Stocks: Top 3 Picks On SIX Swiss Exchange

The Switzerland market ended modestly higher on Monday, with the benchmark SMI closing up by 0.26%, as investors remained cautious ahead of the Swiss National Bank's interest rate decision and upcoming economic data from the U.S. and Europe. In this environment of cautious optimism, dividend stocks can offer a stable income stream and potential for growth, making them an attractive option for investors seeking reliable returns amidst market fluctuations.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.15%	★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)	4.68%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.63%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.97%	★★★★★★
EFG International (SWX:EFGN)	4.86%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	5.39%	★★★★★☆
TX Group (SWX:TXGN)	4.53%	★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)	4.06%	★★★★★☆
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.

We'll examine a selection from our screener results.

Basellandschaftliche Kantonalbank (SWX:BLKB)

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

Overview: Basellandschaftliche Kantonalbank offers a range of banking products and services to private and corporate customers in Switzerland, with a market cap of CHF1.84 billion.

Operations: Basellandschaftliche Kantonalbank generates CHF466.77 million from its banking products and services provided to private and corporate clients in Switzerland.

Dividend Yield: 4.7%

Basellandschaftliche Kantonalbank offers a high and reliable dividend yield of 4.71%, placing it in the top 25% of Swiss dividend payers. Its dividends have been stable and growing over the past decade, supported by a reasonable payout ratio of 56.7%. The recent earnings report showed net income growth to CHF 67.06 million for H1 2024 from CHF 63.23 million last year, indicating solid financial health that underpins its dividend reliability.

• Click to explore a detailed breakdown of our findings in Basellandschaftliche Kantonalbank's dividend report.
• Our valuation report here indicates Basellandschaftliche Kantonalbank may be overvalued.

Luzerner Kantonalbank (SWX:LUKN)

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

Overview: Luzerner Kantonalbank AG, with a market cap of CHF3.04 billion, offers a range of banking products and services in Switzerland.

Operations: Luzerner Kantonalbank AG generates revenue through its various banking products and services within Switzerland.

Dividend Yield: 4.1%

Luzerner Kantonalbank's dividends have been stable and growing over the past decade, with a current payout ratio of 46.5%, ensuring sustainability. The bank's recent earnings report for H1 2024 showed net income rising to CHF 144.73 million from CHF 127.96 million last year, reinforcing its financial health. Although its dividend yield of 4.06% is below the top quartile in Switzerland, it remains attractive due to consistent coverage by earnings forecasted at 42%.

• Take a closer look at Luzerner Kantonalbank's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that Luzerner Kantonalbank is trading behind its estimated value.

Phoenix Mecano (SWX:PMN)

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

Overview: Phoenix Mecano AG, with a market cap of CHF423.09 million, manufactures and sells components for industrial customers worldwide through its subsidiaries.

Operations: Phoenix Mecano AG generates revenue from three main segments: Enclosure Systems (€218.16 million), Industrial Components (€197.28 million), and Dewertokin Technology Group (€348.00 million).

Dividend Yield: 6.4%

Phoenix Mecano's recent H1 2024 earnings report showed a decline in sales to €382.8 million and net income to €17.2 million, impacting its dividend sustainability. Despite a high dividend yield of 6.42%, the payout is not well covered by free cash flows or earnings, with a cash payout ratio of 118.5%. The company's dividends have been volatile over the past decade, though they have increased overall during this period.

• Click here and access our complete dividend analysis report to understand the dynamics of Phoenix Mecano.
• The valuation report we've compiled suggests that Phoenix Mecano's current price could be quite moderate.

Taking Advantage

• Access the full spectrum of 26 Top SIX Swiss Exchange Dividend Stocks by clicking on this link.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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