Top 3 Dividend Stocks On The SIX Swiss Exchange

The Switzerland market ended notably lower on Thursday due to sustained selling amid concerns about a slowdown in global economic growth, with data showing an increase in Swiss unemployment weighing heavily. Despite these challenges, dividend stocks can offer investors a measure of stability and income, making them an attractive option in uncertain times.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Cembra Money Bank (SWX:CMBN)	5.20%	★★★★★★
Vaudoise Assurances Holding (SWX:VAHN)	4.82%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.56%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.76%	★★★★★★
EFG International (SWX:EFGN)	4.78%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	5.51%	★★★★★☆
TX Group (SWX:TXGN)	4.33%	★★★★★☆
Helvetia Holding (SWX:HELN)	4.58%	★★★★★☆
Luzerner Kantonalbank (SWX:LUKN)	3.93%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.68%	★★★★★☆

Click here to see the full list of 26 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.

Bucher Industries (SWX:BUCN)

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

Overview: Bucher Industries AG manufactures and sells machinery, systems, and hydraulic components for various industries including agriculture, food production, and public maintenance across Asia, the Americas, Europe, and internationally with a market cap of CHF3.55 billion.

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

Dividend Yield: 3.9%

Bucher Industries offers a stable dividend history with consistent growth over the past decade. However, its current dividend yield of 3.9% is below the top quartile in Switzerland and is not well covered by free cash flows, indicated by a high cash payout ratio of 102.5%. Recent earnings reports show a decline in both sales (CHF 1.72 billion) and net income (CHF 144.1 million), raising concerns about future sustainability despite a low payout ratio of 46.4%.

• Dive into the specifics of Bucher Industries here with our thorough dividend report.
• Our comprehensive valuation report raises the possibility that Bucher Industries is priced lower than what may be justified by its financials.

LEM Holding (SWX:LEHN)

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

Overview: LEM Holding SA, with a market cap of CHF1.36 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 generates revenue by offering solutions for measuring electrical parameters across diverse regions including China, Japan, South Korea, India, Southeast Asia, Europe, the Middle East, Africa, NAFTA and Latin America.

Dividend Yield: 4.2%

LEM Holding has a stable dividend history with consistent growth over the past decade. However, recent earnings reports show a significant decline in sales (CHF 80.96 million) and net income (CHF 4.78 million). The dividend yield of 4.2% is slightly below the top quartile in Switzerland and is not well covered by free cash flows, indicated by a high cash payout ratio of 125.8%. The stock trades at 35% below its estimated fair value but has been highly volatile recently.

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

StarragTornos Group (SWX:STGN)

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

Overview: StarragTornos Group AG, with a market cap of CHF248.97 million, develops, manufactures, and distributes precision machine tools for milling, turning, boring, grinding, and machining of metal, composite materials, and ceramics.

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

Dividend Yield: 5.5%

StarragTornos Group's dividend yield of 5.46% is among the top 25% in Switzerland, but its payments have been volatile and not well covered by free cash flows. Despite a reasonable payout ratio of 62.7%, earnings have declined significantly, with net income dropping to CHF 6.57 million for H1 2024 from CHF 13.62 million a year ago. The stock trades at a slight discount to its fair value, though shareholders faced significant dilution over the past year.

• Navigate through the intricacies of StarragTornos Group with our comprehensive dividend report here.
• The valuation report we've compiled suggests that StarragTornos Group's current price could be quite moderate.

Seize The Opportunity

• Unlock more gems! Our Top SIX Swiss Exchange Dividend Stocks screener has unearthed 23 more companies for you to explore.Click here to unveil our expertly curated list of 26 Top SIX Swiss Exchange Dividend Stocks.
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Curious About Other Options?

• 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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