Stock Analysis

3 Swiss Dividend Stocks On SIX Swiss Exchange Yielding Up To 5%

SWX:BAER
Source: Shutterstock

The Swiss market has shown a steady upward trend, climbing 1.1% in the last week and achieving a 10% increase over the past year, with earnings projected to grow by 12% annually. In this favorable environment, selecting dividend stocks that offer substantial yields can be an effective strategy for investors seeking to capitalize on Switzerland's robust economic performance.

Top 10 Dividend Stocks In Switzerland

NameDividend YieldDividend Rating
Cembra Money Bank (SWX:CMBN)5.03%★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)4.73%★★★★★★
St. Galler Kantonalbank (SWX:SGKN)4.53%★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)4.83%★★★★★★
EFG International (SWX:EFGN)4.71%★★★★★☆
TX Group (SWX:TXGN)4.46%★★★★★☆
Julius Bär Gruppe (SWX:BAER)4.81%★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)3.83%★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)4.69%★★★★★☆
DKSH Holding (SWX:DKSH)3.42%★★★★★☆

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

Let's explore several standout options from the results in the screener.

Procimmo Group (BRSE:SEGN)

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

Overview: Procimmo Group AG is a holding company that focuses on the investment, management, and sale of real estate properties in Switzerland with a market cap of CHF176.58 million.

Operations: Procimmo Group AG generates revenue primarily from its Real Estate & Property Managers segment, amounting to CHF30.64 million.

Dividend Yield: 5.1%

Procimmo Group's dividend payments are supported by both earnings and cash flows, with payout ratios of 63.3% and 51.8% respectively, indicating a sustainable dividend policy. The company's dividends have been reliable but have a short track record of under ten years. Despite being highly illiquid and trading at 64% below its estimated fair value, Procimmo offers a dividend yield in the top tier of Swiss market payers. Recent earnings growth further supports its financial health.

BRSE:SEGN Dividend History as at Oct 2024
BRSE:SEGN Dividend History as at Oct 2024

Julius Bär Gruppe (SWX:BAER)

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

Overview: Julius Bär Gruppe AG is a Swiss company offering wealth management solutions across Switzerland, Europe, the Americas, Asia, and internationally with a market cap of CHF11.06 billion.

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

Dividend Yield: 4.8%

Julius Bär Gruppe offers a high dividend yield of 4.81%, placing it in the top 25% of Swiss dividend payers, though its current payout ratio of 142.7% indicates dividends are not well covered by earnings. Despite stable and reliable dividend growth over the past decade, sustainability remains a concern until forecasted improvements in three years. Recent executive changes could impact strategic direction, with Stefan Bollinger set to become CEO by February 2025.

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

Swiss Re (SWX:SREN)

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

Overview: Swiss Re AG is a global provider of wholesale reinsurance, insurance, and risk transfer services with a market capitalization of CHF34.31 billion.

Operations: Swiss Re AG's revenue is primarily derived from its Property & Casualty Reinsurance segment at $25.39 billion, followed by Life & Health Reinsurance at $18.71 billion, Corporate Solutions at $6.10 billion, and Group Items contributing $2.09 billion.

Dividend Yield: 5%

Swiss Re offers a dividend yield of 4.96%, ranking in the top 25% of Swiss payers, with dividends well-covered by earnings and cash flows at payout ratios of 55.8% and 50%, respectively. Despite trading at a significant discount to estimated fair value, its dividend track record is unstable, marked by volatility over the past decade. Recent earnings growth and net income increase to US$2.09 billion suggest potential for improved financial stability moving forward.

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

Taking Advantage

Looking For Alternative Opportunities?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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