Swiss Dividend Stocks To Watch On SIX Swiss Exchange

The Switzerland market ended higher on Monday, aligning with broader European trends as investors anticipated key inflation data from the U.S. and the European Central Bank's monetary policy announcement this week. The benchmark SMI saw a solid gain of 72.40 points or 0.61%, closing at 11,980.64. In such a dynamic market environment, dividend stocks can offer stability and consistent returns for investors looking to navigate economic uncertainties while benefiting from regular income distributions.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.18%	★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)	4.81%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.65%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.86%	★★★★★★
EFG International (SWX:EFGN)	4.83%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	5.56%	★★★★★☆
TX Group (SWX:TXGN)	4.51%	★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)	4.05%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.68%	★★★★★☆
DKSH Holding (SWX:DKSH)	3.37%	★★★★★☆

Click here to see the full list of 24 stocks from our Top SIX Swiss Exchange Dividend Stocks screener.

Let's dive into some prime choices out of the screener.

Berner Kantonalbank (SWX:BEKN)

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

Overview: Berner Kantonalbank AG provides a range of banking products and services to both private individuals and corporate customers in Switzerland, with a market cap of CHF2.10 billion.

Operations: Berner Kantonalbank AG generates revenue primarily through its banking segment, amounting to CHF539.60 million.

Dividend Yield: 4.4%

Berner Kantonalbank offers a high and reliable dividend yield of 4.41%, placing it in the top 25% of Swiss dividend payers. The bank's payout ratio stands at a reasonable 52.8%, indicating dividends are well-covered by earnings. Over the past decade, dividends have been stable and growing, supported by consistent earnings growth of 4.7% per year over five years. Recent half-year results show steady net interest income (CHF 198 million) and net income (CHF 75.29 million).

• Click to explore a detailed breakdown of our findings in Berner Kantonalbank's dividend report.
• According our valuation report, there's an indication that Berner Kantonalbank's share price might be on the expensive side.

Burkhalter Holding (SWX:BRKN)

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

Overview: Burkhalter Holding AG, with a market cap of CHF 928.80 million, provides electrical engineering services to the construction sector in Switzerland through its subsidiaries.

Operations: Burkhalter Holding AG generates revenue from providing electrical engineering services tailored to the construction industry in Switzerland.

Dividend Yield: 5.1%

Burkhalter Holding's recent earnings report shows a revenue increase to CHF 570.3 million and net income of CHF 23.3 million for the half year ended June 30, 2024. Despite its high dividend yield of 5.09%, which is in the top quartile for Swiss stocks, Burkhalter's dividend history has been volatile and unreliable over the past decade. However, its dividends are covered by both earnings (87.4% payout ratio) and cash flows (59.7% cash payout ratio), suggesting current sustainability despite a high level of debt.

• Delve into the full analysis dividend report here for a deeper understanding of Burkhalter Holding.
• The valuation report we've compiled suggests that Burkhalter Holding's current price could be inflated.

LEM Holding (SWX:LEHN)

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

Overview: LEM Holding SA, with a market cap of CHF1.44 billion, provides solutions for measuring electrical parameters across various regions including China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America.

Operations: LEM Holding SA's revenue segments include providing solutions for measuring electrical parameters across China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America.

Dividend Yield: 4%

LEM Holding reported first-quarter sales of CHF 80.96 million and net income of CHF 4.78 million, both down significantly from the previous year. The company's dividend yield is 3.96%, lower than the top quartile in Switzerland, and not well covered by free cash flows or earnings, with a high cash payout ratio of 125.8%. Despite this, LEM's dividends have been stable and growing over the past decade but face sustainability concerns due to declining profit margins and high debt levels.

• Unlock comprehensive insights into our analysis of LEM Holding stock in this dividend report.
• According our valuation report, there's an indication that LEM Holding's share price might be on the cheaper side.

Next Steps

• Unlock our comprehensive list of 24 Top SIX Swiss Exchange Dividend Stocks by clicking here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
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Ready To Venture Into Other Investment Styles?

• 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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