3 Top Dividend Stocks On SIX Swiss Exchange Yielding Up To 6.5%

The Swiss market recently experienced a modest loss, influenced by U.S. economic data showing higher-than-expected consumer price inflation and an increase in jobless claims. In this fluctuating environment, dividend stocks on the SIX Swiss Exchange can offer stability and income potential, making them attractive options for investors seeking reliable returns amidst market uncertainties.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.08%	★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)	4.71%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.55%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.85%	★★★★★★
EFG International (SWX:EFGN)	4.69%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	4.84%	★★★★★☆
TX Group (SWX:TXGN)	4.34%	★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)	3.85%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.72%	★★★★★☆
DKSH Holding (SWX:DKSH)	3.44%	★★★★★☆

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

Let's uncover some gems from our specialized screener.

Compagnie Financière Tradition (SWX:CFT)

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

Overview: Compagnie Financière Tradition SA operates as an interdealer broker of financial and non-financial products globally, with a market cap of CHF1.25 billion.

Operations: Compagnie Financière Tradition SA generates revenue from three primary regions: CHF352.67 million from the Americas, CHF273.16 million from Asia-Pacific, and CHF452.85 million from Europe, Middle East and Africa.

Dividend Yield: 3.7%

Compagnie Financière Tradition offers a reliable dividend yield of 3.73%, though it is below the top quartile in Switzerland. Its dividends have been stable and growing over the past decade, supported by a low payout ratio of 43.3% and reasonable cash flow coverage at 60.7%. Despite recent shareholder dilution, earnings have risen by 16.1% year-on-year, with net income reaching CHF 59.99 million for H1 2024, indicating robust financial health to sustain dividends.

• Get an in-depth perspective on Compagnie Financière Tradition's performance by reading our dividend report here.
• According our valuation report, there's an indication that Compagnie Financière Tradition's share price might be on the cheaper side.

Phoenix Mecano (SWX:PMN)

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

Overview: Phoenix Mecano AG, with a market cap of CHF414.49 million, manufactures and sells components for industrial customers globally through its subsidiaries.

Operations: Phoenix Mecano AG generates its revenue from three main segments: Enclosure Systems (€218.16 million), Industrial Components (€197.28 million), and Dewertokin Technology Group (€348 million).

Dividend Yield: 6.5%

Phoenix Mecano's dividend yield of 6.53% ranks in the top 25% of Swiss dividend payers, yet its dividends have been volatile over the past decade. The company's payout ratio is reasonable at 72.4%, but a high cash payout ratio of 118.5% suggests dividends are not well covered by free cash flow. Recent earnings showed a decline, with sales at €382.8 million and net income at €17.2 million for H1 2024, indicating potential challenges in sustaining dividends long-term.

• Delve into the full analysis dividend report here for a deeper understanding of Phoenix Mecano.
• The analysis detailed in our Phoenix Mecano valuation report hints at an deflated share price compared to its estimated value.

Swiss Re (SWX:SREN)

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

Overview: Swiss Re AG, with a market cap of CHF33.82 billion, operates globally through its subsidiaries providing wholesale reinsurance, insurance, and other insurance-based risk transfer services.

Operations: Swiss Re AG's revenue segments include Property & Casualty Reinsurance at $25.39 billion, Life & Health Reinsurance at $18.71 billion, Corporate Solutions at $6.10 billion, and Group Items at $2.09 billion, with a consolidation adjustment of -$1.08 billion.

Dividend Yield: 5%

Swiss Re's dividend yield of 5.01% places it among the top 25% of Swiss dividend payers, though its dividends have been volatile over the past decade. The company maintains a reasonable payout ratio of 55.8%, with dividends covered by both earnings and cash flows, evidenced by a cash payout ratio of 50%. Recent earnings for H1 2024 showed net income at US$2.09 billion, reflecting growth from US$1.79 billion in the previous year.

• Click here and access our complete dividend analysis report to understand the dynamics of Swiss Re.
• Our valuation report here indicates Swiss Re may be undervalued.

Where To Now?

• Discover the full array of 26 Top SIX Swiss Exchange Dividend Stocks right here.
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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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