3 Dividend Stocks On SIX Swiss Exchange Yielding Up To 6.6%

The Swiss market faced a downturn recently, with the benchmark SMI dropping by 1.12% as investors processed earnings updates and anticipated key U.S. economic data. Amidst this backdrop of fluctuating market conditions, dividend stocks can offer a measure of stability and income for investors seeking reliable returns in uncertain times.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.13%	★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)	4.72%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.45%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.85%	★★★★★★
Novartis (SWX:NOVN)	3.25%	★★★★★☆
EFG International (SWX:EFGN)	4.55%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	4.76%	★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)	3.89%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.73%	★★★★★☆
DKSH Holding (SWX:DKSH)	3.61%	★★★★★☆

Click here to see the full list of 28 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.

Julius Bär Gruppe (SWX:BAER)

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

Overview: Julius Bär Gruppe AG is a wealth management firm offering solutions across Switzerland, Europe, the Americas, Asia, and internationally with a market cap of CHF11.19 billion.

Operations: Julius Bär Gruppe AG generates revenue primarily from its Private Banking segment, which amounts to CHF3.15 billion.

Dividend Yield: 4.8%

Julius Bär Gruppe's dividend yield of 4.76% ranks in the top 25% of Swiss dividend payers, yet its high payout ratio of 142.7% indicates dividends are not well covered by earnings. Despite reliable and stable dividends over the past decade, profit margins have declined from last year. A recent €500 million fixed-income offering may impact financial flexibility but could also support future growth initiatives as earnings are forecast to grow annually by 21.93%.

• Dive into the specifics of Julius Bär Gruppe here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Julius Bär Gruppe is priced higher than what may be justified by its financials.

Compagnie Financière Tradition (SWX:CFT)

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

Overview: Compagnie Financière Tradition SA is a global interdealer broker of financial and non-financial products, with a market cap of CHF 1.19 billion.

Operations: Compagnie Financière Tradition SA's revenue is derived from three main regions: CHF 352.67 million from the Americas, CHF 273.16 million from Asia-Pacific, and CHF 452.85 million from Europe, Middle East and Africa.

Dividend Yield: 3.9%

Compagnie Financière Tradition offers a stable dividend yield of 3.92%, supported by a low payout ratio of 43.3% and a cash payout ratio of 60.7%, ensuring coverage by both earnings and cash flows. Dividends have been reliable, growing steadily over the past decade with minimal volatility. Despite recent shareholder dilution, earnings increased by 16.1% last year, with revenue rising to CHF 538.34 million for the half-year ending June 2024, enhancing dividend sustainability prospects further.

• Click here to discover the nuances of Compagnie Financière Tradition with our detailed analytical dividend report.
• Our expertly prepared valuation report Compagnie Financière Tradition implies its share price may be lower than expected.

Phoenix Mecano (SWX:PMN)

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

Overview: Phoenix Mecano AG, with a market cap of CHF405.89 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 (€348.00 million).

Dividend Yield: 6.7%

Phoenix Mecano's dividend yield of 6.67% ranks among the top in Switzerland, though its payments have been volatile and unreliable over the past decade. The payout ratio of 72.4% suggests dividends are covered by earnings, but not by free cash flows, as indicated by a high cash payout ratio of 118.5%. Recent earnings showed a decline in net income to €17.2 million for H1 2024 from €19.9 million year-on-year, impacting dividend sustainability concerns further.

• Unlock comprehensive insights into our analysis of Phoenix Mecano stock in this dividend report.
• The valuation report we've compiled suggests that Phoenix Mecano's current price could be quite moderate.

Seize The Opportunity

• Reveal the 28 hidden gems among our Top SIX Swiss Exchange Dividend Stocks screener with a single click here.
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Looking For Alternative Opportunities?

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• 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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