Stock Analysis

3 Dividend Stocks On SIX Swiss Exchange With Up To 5.9% Yield

SWX:STGN
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The Swiss market has shown resilience, with the benchmark SMI managing a small gain despite early fluctuations and recent developments in the luxury sector. In this dynamic environment, dividend stocks on the SIX Swiss Exchange can offer stability and income potential, making them an attractive option for investors seeking consistent returns amidst market shifts.

Top 10 Dividend Stocks In Switzerland

NameDividend YieldDividend Rating
Cembra Money Bank (SWX:CMBN)5.14%★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)4.74%★★★★★★
St. Galler Kantonalbank (SWX:SGKN)4.57%★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)4.84%★★★★★★
EFG International (SWX:EFGN)4.68%★★★★★☆
TX Group (SWX:TXGN)4.35%★★★★★☆
Julius Bär Gruppe (SWX:BAER)4.94%★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)3.86%★★★★★☆
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.

Let's uncover some gems from our specialized screener.

Bucher Industries (SWX:BUCN)

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

Overview: Bucher Industries AG manufactures and sells machinery, systems, and hydraulic components for agriculture, food production, packaging, and public space maintenance across Asia, the Americas, Europe, and globally with a market cap of CHF3.88 billion.

Operations: Bucher Industries AG's revenue segments are comprised of Kuhn Group (CHF1.27 billion), Bucher Specials (CHF373.90 million), Bucher Municipal (CHF593.40 million), Bucher Hydraulics (CHF699.20 million), and Bucher Emhart Glass (CHF502.10 million).

Dividend Yield: 3.6%

Bucher Industries offers a mixed picture for dividend investors. While its dividends have been stable and growing over the past decade, recent earnings reports show a decline in both sales and net income, with CHF 1.72 billion in sales and CHF 144.1 million in net income for the first half of 2024. The dividend yield of 3.56% is below top-tier Swiss payers, and high cash payout ratios indicate potential sustainability concerns despite a low payout ratio from earnings.

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

CPH Group (SWX:CPHN)

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

Overview: CPH Group AG is a Swiss company that manufactures and sells chemicals and packaging films globally, with a market capitalization of CHF449.64 million.

Operations: The revenue segments for CPH Group AG are comprised of Chemistry at CHF128.62 million, Packaging at CHF219.70 million, and Spun-off divisions (Paper) at CHF245.37 million.

Dividend Yield: 5.3%

CPH Group's dividend profile reveals challenges for investors. Despite a top-tier yield of 5.33% in the Swiss market, dividends have been volatile and unreliable over the past decade, with a high payout ratio of 249.1% indicating unsustainable coverage by earnings. Recent financials show declining sales and a net loss of CHF 8.66 million for H1 2024, raising concerns about future payouts despite adequate cash flow coverage with a cash payout ratio of 47%.

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

StarragTornos Group (SWX:STGN)

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

Overview: StarragTornos Group AG is a company that develops, manufactures, and distributes precision machine tools for various machining processes involving metal, composite materials, and ceramics with a market cap of CHF229.40 million.

Operations: StarragTornos Group AG generates revenue through the development, manufacturing, and distribution of precision machine tools designed for milling, turning, boring, grinding, and machining workpieces made from metal, composite materials, and ceramics.

Dividend Yield: 5.9%

StarragTornos Group's dividend yield of 5.92% ranks in the top 25% for Swiss dividend payers, yet it faces sustainability issues as dividends are not covered by free cash flows and earnings. Despite a reasonable payout ratio of 62.7%, dividends have been volatile over the past decade. Recent financials show sales increased to CHF 254.95 million for H1 2024, but net income dropped to CHF 6.57 million, reflecting potential challenges in maintaining consistent payouts amidst executive changes.

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

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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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