The Switzerland market concluded positively this Thursday, buoyed by the European Central Bank's recent decision to cut interest rates, which has sparked a generally optimistic sentiment across European markets. With the Swiss Market Index (SMI) showing a notable increase and stable unemployment figures, investors are keenly watching for opportunities in robust dividend-paying stocks amidst these favorable economic conditions. In this context, selecting strong dividend stocks involves looking for companies with consistent payout histories and the financial health to sustain dividends even in fluctuating markets.
Top 10 Dividend Stocks In Switzerland
| Name | Dividend Yield | Dividend Rating |
| Vontobel Holding (SWX:VONN) | 5.56% | ★★★★★★ |
| Cembra Money Bank (SWX:CMBN) | 5.35% | ★★★★★★ |
| Compagnie Financière Tradition (SWX:CFT) | 4.12% | ★★★★★★ |
| Banque Cantonale Vaudoise (SWX:BCVN) | 4.49% | ★★★★★★ |
| St. Galler Kantonalbank (SWX:SGKN) | 4.23% | ★★★★★★ |
| Novartis (SWX:NOVN) | 3.36% | ★★★★★☆ |
| Roche Holding (SWX:ROG) | 4.03% | ★★★★★☆ |
| EFG International (SWX:EFGN) | 4.19% | ★★★★★☆ |
| Julius Bär Gruppe (SWX:BAER) | 5.05% | ★★★★★☆ |
| Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.69% | ★★★★★☆ |
Click here to see the full list of 28 stocks from our Top Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
Basellandschaftliche Kantonalbank (SWX:BLKB)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Basellandschaftliche Kantonalbank offers a range of banking products and services to private, institutional, business, and public sector clients in Switzerland, with a market capitalization of CHF 1.84 billion.
Operations: Basellandschaftliche Kantonalbank generated CHF 458.55 million in revenue from its banking operations.
Dividend Yield: 4.7%
Basellandschaftliche Kantonalbank has demonstrated a consistent dividend track record, with payments increasing over the past decade and maintaining stability. Its current dividend yield stands at 4.69%, placing it in the top 25% of Swiss dividend payers. The dividends are well-covered by earnings, given its payout ratio of 56.7%. However, future coverage is uncertain due to insufficient data on long-term earnings or cash flow projections, despite a low allowance for bad loans at 51%.
- Click here to discover the nuances of Basellandschaftliche Kantonalbank with our detailed analytical dividend report.
- The valuation report we've compiled suggests that Basellandschaftliche Kantonalbank's current price could be inflated.
EFG International (SWX:EFGN)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: EFG International AG operates primarily in private banking, wealth management, and asset management, with a market capitalization of approximately CHF 3.97 billion.
Operations: EFG International AG generates its revenue primarily through private banking and wealth management services across various regions, with CHF 450.20 million from Switzerland & Italy, CHF 249.70 million from Continental Europe & Middle East, CHF 177.40 million in the United Kingdom, CHF 165.30 million in Asia Pacific, and CHF 133.20 million in the Americas.
Dividend Yield: 4.2%
EFG International offers a dividend yield of 4.19%, ranking in the top quartile of Swiss dividend stocks, and has shown a decade-long trend of increasing dividends. However, its dividend history is marked by volatility and unreliability, with significant fluctuations over the past ten years. The firm's payout ratio stands at 58.5%, suggesting that dividends are currently sustainable from earnings, which are expected to grow annually by 5.43%. Notably, EFG has extended its buyback plan to July 2024, potentially impacting future dividend policies.
- Take a closer look at EFG International's potential here in our dividend report.
- The valuation report we've compiled suggests that EFG International's current price could be quite moderate.
Jungfraubahn Holding (SWX:JFN)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Jungfraubahn Holding AG operates cogwheel railways and winter sports facilities in the Jungfrau region of Switzerland, with a market capitalization of approximately CHF 1.08 billion.
Operations: Jungfraubahn Holding AG generates revenue primarily through three segments: Jungfraujoch - Top of Europe (CHF 188.24 million), Experience Mountains (CHF 45.94 million), and Winter Sports (CHF 41.26 million).
Dividend Yield: 3.4%
Jungfraubahn Holding AG recently announced a regular cash dividend of CHF 6.50, payable on May 22, 2024. While the company's earnings have surged by 81.6% over the past year and are projected to grow annually by 2.54%, its dividend yield of 3.37% remains below the Swiss market's top quartile average of 4.12%. Dividends appear sustainable with a payout ratio of 47.8% and a cash payout ratio of 61.7%, yet Jungfraubahn's dividend history has been unstable and unreliable over the past decade, reflecting volatility in payments despite recent increases.
- Click here and access our complete dividend analysis report to understand the dynamics of Jungfraubahn Holding.
- The analysis detailed in our Jungfraubahn Holding valuation report hints at an inflated share price compared to its estimated value.
Make It Happen
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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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