Top Dividend Stocks On SIX Swiss Exchange In July 2024

Amidst a generally positive backdrop in the Switzerland market, marked by optimism over potential interest rate cuts by central banks including the Federal Reserve, investors are keenly observing movements on the SIX Swiss Exchange. The benchmark SMI's recent uptick underscores a firm market undertone, setting an intriguing stage for dividend stock considerations. In this environment, identifying top-performing dividend stocks involves looking for companies with strong fundamentals and consistent dividend histories, which can be particularly appealing in times of economic optimism and anticipated monetary easing.

Top 10 Dividend Stocks In Switzerland

Name	Dividend Yield	Dividend Rating
Compagnie Financière Tradition (SWX:CFT)	4.23%	★★★★★★
Vontobel Holding (SWX:VONN)	5.20%	★★★★★★
Cembra Money Bank (SWX:CMBN)	5.18%	★★★★★★
Banque Cantonale Vaudoise (SWX:BCVN)	4.50%	★★★★★★
St. Galler Kantonalbank (SWX:SGKN)	4.36%	★★★★★★
Novartis (SWX:NOVN)	3.20%	★★★★★☆
Roche Holding (SWX:ROG)	3.50%	★★★★★☆
Julius Bär Gruppe (SWX:BAER)	5.06%	★★★★★☆
Helvetia Holding (SWX:HELN)	4.90%	★★★★★☆
Basellandschaftliche Kantonalbank (SWX:BLKB)	4.66%	★★★★★☆

Click here to see the full list of 27 stocks from our Top SIX Swiss Exchange Dividend Stocks screener.

We'll examine a selection from our screener results.

LEM Holding (SWX:LEHN)

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

Overview: LEM Holding SA operates globally, offering solutions for measuring electrical parameters across various regions including Asia, Europe, the Middle East, Africa, and the Americas, with a market capitalization of CHF 1.61 billion.

Operations: LEM Holding SA generates revenue primarily through two segments: Asia (CHF 201.98 million) and Europe/Americas (CHF 203.80 million).

Dividend Yield: 3.5%

LEM Holding SA reported a slight decrease in annual sales and net income, with earnings per share also declining from the previous year. Despite this, the company maintains a stable dividend payout, recently announcing a CHF 50.0 cash dividend. However, its high cash payout ratio of 125.8% raises concerns about the sustainability of these dividends since they are not well covered by free cash flows. Moreover, while LEM's stock is trading below estimated fair value and analysts expect potential price growth, its dividend yield remains lower than many top Swiss dividend payers and has shown significant share price volatility recently.

• Click here to discover the nuances of LEM Holding with our detailed analytical dividend report.
• Upon reviewing our latest valuation report, LEM Holding's share price might be too pessimistic.

Roche Holding (SWX:ROG)

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

Overview: Roche Holding AG operates in the pharmaceuticals and diagnostics sectors across various global regions, with a market capitalization of approximately CHF 221.22 billion.

Operations: Roche Holding AG generates CHF 44.43 billion from its Roche Pharmaceuticals segment and CHF 7.20 billion from Pharmaceuticals - Chugai, alongside CHF 14.16 billion in revenue from its Diagnostics division.

Dividend Yield: 3.5%

Roche Holding offers a modest dividend yield of 3.5%, which is lower than the top quartile of Swiss dividend stocks at 4.21%. Despite this, the company maintains a stable dividend history over the past decade and has seen an increase in payments during that period. Financially, Roche trades at a significant discount—60.4% below estimated fair value—and shows robust earnings coverage with a payout ratio of 66.7%, ensuring dividends are well-supported by earnings and cash flow alike. However, its high debt levels warrant caution for potential investors focused on long-term stability within dividend portfolios.

• Dive into the specifics of Roche Holding here with our thorough dividend report.
• The analysis detailed in our Roche Holding valuation report hints at an deflated share price compared to its estimated value.

Vontobel Holding (SWX:VONN)

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

Overview: Vontobel Holding AG is a financial services provider operating in multiple countries including Switzerland, Germany, the UK, Italy, North America, and Asia-Pacific regions with a market capitalization of CHF 3.19 billion.

Operations: Vontobel Holding AG generates revenue through three primary segments: Asset Management (CHF 384.10 million), Digital Investing (CHF 154.30 million), and Wealth Management (CHF 746.90 million).

Dividend Yield: 5.2%

Vontobel Holding has consistently increased its dividend over the last decade, offering a competitive yield of 5.2%, higher than the Swiss market average of 4.18%. The dividends are well-supported by earnings with a current payout ratio of 77.7% and projected to improve to 59.6% in three years, indicating sustainability. Despite trading at a notable discount of 40.2% below fair value, investors should note that 63% of Vontobel's funding comes from higher-risk sources like external borrowing.

• Take a closer look at Vontobel Holding's potential here in our dividend report.
• Our valuation report here indicates Vontobel Holding may be undervalued.

Taking Advantage

• Access the full spectrum of 27 Top SIX Swiss Exchange Dividend Stocks by clicking on this link.
• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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