As global markets face renewed fears of economic slowdown, the Swedish market remains a focal point for investors seeking stability and reliable returns. With major indices experiencing fluctuations, dividend stocks in Sweden offer an attractive option for those looking to balance their portfolios amidst uncertainty. In times of market volatility, a good dividend stock is characterized by consistent payouts and strong financial health. This article highlights three top Swedish dividend stocks that stand out for their resilience and potential to provide steady income in September 2024.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Betsson (OM:BETS B) | 5.85% | ★★★★★☆ |
| Nordea Bank Abp (OM:NDA SE) | 8.69% | ★★★★★☆ |
| Zinzino (OM:ZZ B) | 3.79% | ★★★★★☆ |
| HEXPOL (OM:HPOL B) | 3.72% | ★★★★★☆ |
| Bredband2 i Skandinavien (OM:BRE2) | 4.31% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.05% | ★★★★★☆ |
| Duni (OM:DUNI) | 5.08% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.41% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 4.96% | ★★★★★☆ |
| Afry (OM:AFRY) | 3.04% | ★★★★☆☆ |
Click here to see the full list of 22 stocks from our Top Swedish Dividend Stocks screener.
Let's review some notable picks from our screened stocks.
BioGaia (OM:BIOG B)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: BioGaia AB (publ) is a healthcare company that provides probiotic products worldwide and has a market cap of SEK11.71 billion.
Operations: BioGaia AB (publ) generates revenue primarily from its Pediatrics segment, which accounts for SEK1072.93 million, and its Adult Health segment, contributing SEK288.68 million.
Dividend Yield: 6%
BioGaia's dividend yield of 5.96% places it in the top 25% of Swedish dividend payers, but its high cash payout ratio (193.8%) raises sustainability concerns as dividends are not well covered by free cash flows. Despite a reasonably low payout ratio (47.8%) suggesting coverage by earnings, significant insider selling over the past three months and historically volatile dividends add to the uncertainty. Recent earnings showed growth with Q2 sales at SEK 384.12 million and net income at SEK 111.01 million, indicating potential stability moving forward.
- Click to explore a detailed breakdown of our findings in BioGaia's dividend report.
- The valuation report we've compiled suggests that BioGaia's current price could be quite moderate.
Bulten (OM:BULTEN)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bulten AB (publ) manufactures and distributes fasteners and related services for various industries, including automotive and consumer electronics, with a market cap of approximately SEK1.51 billion.
Operations: Bulten AB (publ) generates SEK5.95 billion in revenue from its fasteners and related services across various industries, including light vehicles, heavy commercial vehicles, automotive suppliers, consumer electronics, and more.
Dividend Yield: 3.5%
Bulten's dividend payments are covered by earnings (57% payout ratio) and cash flows (30.9% cash payout ratio), but its track record is volatile and unreliable over the past decade. Recent earnings show Q2 sales at SEK 1.47 billion with net income of SEK 34 million, a slight drop from last year. The appointment of Axel Berntsson as CEO may bring new strategic direction, potentially impacting future dividends positively or negatively.
- Dive into the specifics of Bulten here with our thorough dividend report.
- Our expertly prepared valuation report Bulten implies its share price may be too high.
HEXPOL (OM:HPOL B)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: HEXPOL AB (publ) develops, manufactures, and sells polymer compounds and engineered products across Sweden, Europe, the Americas, and Asia with a market cap of SEK37.06 billion.
Operations: HEXPOL AB (publ) generates revenue primarily from its HEXPOL Compounding segment, which contributed SEK20.18 billion, and its HEXPOL Engineered Products segment, which added SEK1.61 billion.
Dividend Yield: 3.7%
HEXPOL's dividend payments are covered by earnings (55.4% payout ratio) and cash flows (57.8% cash payout ratio). Despite a slight decline in Q2 2024 results, with sales at SEK 5.45 billion and net income of SEK 654 million, the company maintains a reliable and growing dividend over the past decade. The recent appointment of Klas Dahlberg as CEO could influence future strategic decisions impacting dividends.
- Get an in-depth perspective on HEXPOL's performance by reading our dividend report here.
- Our comprehensive valuation report raises the possibility that HEXPOL is priced lower than what may be justified by its financials.
Seize The Opportunity
- Unlock more gems! Our Top Swedish Dividend Stocks screener has unearthed 19 more companies for you to explore.Click here to unveil our expertly curated list of 22 Top Swedish Dividend Stocks.
- 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.
- Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.
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.
Valuation is complex, but we're here to simplify it.
Discover if HEXPOL might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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About OM:HPOL B
HEXPOL
Engages in development, manufacture, and sale of various polymer compounds and engineered products in Sweden, Europe, the Americas, and Asia.
Very undervalued with flawless balance sheet and pays a dividend.
