Helvetia Holding And Two More Top Dividend Stocks From SIX Swiss Exchange

The Switzerland stock market recently experienced a downturn, reflecting broader European concerns about global economic growth and underwhelming corporate earnings. With the benchmark SMI index closing lower, investors may be looking for stable investment opportunities during uncertain times. In this context, dividend stocks like Helvetia Holding can offer potential resilience and regular income streams, aligning with the needs of cautious investors in today's volatile market environment.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.23%	★★★★★★
Vontobel Holding (SWX:VONN)	5.14%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.36%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.58%	★★★★★★
Roche Holding (SWX:ROG)	3.51%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	5.00%	★★★★★☆
Helvetia Holding (SWX:HELN)	4.85%	★★★★★☆
Holcim (SWX:HOLN)	3.34%	★★★★★☆
DKSH Holding (SWX:DKSH)	3.30%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.73%	★★★★★☆

Click here to see the full list of 27 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.

Helvetia Holding (SWX:HELN)

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

Overview: Helvetia Holding AG operates in life and non-life insurance, as well as reinsurance, across Switzerland, Germany, Austria, Spain, Italy, France and other international markets with a market capitalization of CHF 6.86 billion.

Operations: Helvetia Holding AG generates CHF 1.81 billion from its life insurance segment and CHF 7.09 billion from non-life insurance operations.

Dividend Yield: 4.9%

Helvetia Holding's dividend yield of CHF 4.85% ranks in the top 25% of Swiss dividend stocks, reflecting its appeal despite a high payout ratio of 120.3%, indicating dividends are not well-covered by earnings. While earnings are anticipated to grow by 22.66% annually, profit margins have dipped from 5.1% to 3%. Dividend reliability is supported by a decade of stable payments and growth, yet sustainability concerns persist as cash flows cover dividends with a low cash payout ratio of 36.5%.

• Dive into the specifics of Helvetia Holding here with our thorough dividend report.
• According our valuation report, there's an indication that Helvetia Holding's share price might be on the expensive side.

Swiss Re (SWX:SREN)

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

Overview: Swiss Re AG operates globally, offering wholesale reinsurance, insurance, and other risk transfer services, with a market capitalization of approximately CHF 31.16 billion.

Operations: Swiss Re AG generates revenue primarily from three segments: Corporate Solutions at $6.06 billion, Life & Health Reinsurance at $18.09 billion, and Property & Casualty Reinsurance at $23.74 billion.

Dividend Yield: 5.6%

Swiss Re offers a dividend yield of CHF 5.57%, placing it in the top 25% of Swiss dividend payers. Despite this, its dividends have shown instability over the past decade with significant volatility and reductions in payments. The payout ratio stands at a sustainable 53.9%, supported by earnings, and a cash payout ratio of 48.3% indicates good coverage by cash flows as well. Recent strategic initiatives include expanding their automated life insurance underwriting solution globally, potentially enhancing operational efficiency and market reach.

• Navigate through the intricacies of Swiss Re with our comprehensive dividend report here.
• Our comprehensive valuation report raises the possibility that Swiss Re is priced lower than what may be justified by its financials.

TX Group (SWX:TXGN)

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

Overview: TX Group AG is a Swiss company that operates various platforms offering information, orientation, entertainment, and support services, with a market capitalization of approximately CHF 1.75 billion.

Operations: TX Group AG's revenue is derived from several segments, including Tamedia at CHF 446.40 million, Goldbach with CHF 274.70 million, 20 Minutes generating CHF 118.40 million, TX Markets at CHF 133.80 million, and Groups & Ventures contributing CHF 159.40 million.

Dividend Yield: 3.7%

TX Group exhibits a mixed performance in the dividend landscape. Its dividends, yielding 3.74%, are modest relative to top Swiss payers. Despite a history of volatility and unreliable payouts over the last decade, recent improvements are evident with dividends now well-supported by both earnings and cash flows, with payout ratios at 86.9% and 42.1% respectively. The company's valuation stands significantly below estimated fair value, and earnings are expected to grow by 22.73% annually, marking a turn towards profitability this year.

• Take a closer look at TX Group's potential here in our dividend report.
• The analysis detailed in our TX Group valuation report hints at an inflated share price compared to its estimated value.

Summing It All Up

• Reveal the 27 hidden gems among our Top SIX Swiss Exchange Dividend Stocks screener with a single click here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• 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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