BioGaia And 2 Other Swedish Dividend Stocks To Enhance Your Portfolio

As global markets react to rising U.S. Treasury yields and cautious monetary policies, the European indices have also experienced declines, reflecting broader economic uncertainties. In this environment, Swedish dividend stocks like BioGaia offer potential stability and income generation for investors looking to navigate fluctuating market conditions.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Bredband2 i Skandinavien (OM:BRE2)	4.79%	★★★★★★
Zinzino (OM:ZZ B)	3.33%	★★★★★☆
Softronic (OM:SOF B)	5.78%	★★★★★☆
Avanza Bank Holding (OM:AZA)	5.04%	★★★★★☆
HEXPOL (OM:HPOL B)	3.76%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.68%	★★★★★☆
Bilia (OM:BILI A)	5.27%	★★★★☆☆
Afry (OM:AFRY)	3.49%	★★★★☆☆
Loomis (OM:LOOMIS)	3.94%	★★★★☆☆
Bahnhof (OM:BAHN B)	3.73%	★★★★☆☆

Click here to see the full list of 22 stocks from our Top Swedish Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

BioGaia (OM:BIOG B)

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

Overview: BioGaia AB (publ) is a healthcare company that offers probiotic products globally, with a market capitalization of SEK10.25 billion.

Operations: BioGaia AB (publ) generates revenue through its main segments, Pediatrics, which accounts for SEK1.04 billion, and Adult Health, contributing SEK306.08 million.

Dividend Yield: 6.8%

BioGaia offers a high dividend yield of 6.81%, ranking in the top 25% of Swedish dividend payers, but its sustainability is questionable due to an elevated cash payout ratio of 191.2%. The company's dividends have been volatile over the past decade, despite some growth. Recent earnings results show a decrease in quarterly net income to SEK 36.6 million from SEK 101.5 million year-on-year, highlighting potential challenges in maintaining current dividend levels amidst significant insider selling recently observed.

• Click here and access our complete dividend analysis report to understand the dynamics of BioGaia.
• The analysis detailed in our BioGaia valuation report hints at an inflated share price compared to its estimated value.

Investment AB Öresund (OM:ORES)

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

Overview: Investment AB Öresund (OM:ORES) is a Swedish investment company focused on asset management, with a market capitalization of approximately SEK5.13 billion.

Operations: Investment AB Öresund generates revenue primarily from unclassified services amounting to SEK920.77 million.

Dividend Yield: 6.1%

Investment AB Öresund offers a competitive dividend yield of 6.07%, placing it among the top 25% of Swedish dividend payers, though its sustainability is challenged by a high cash payout ratio of 183.9%. Despite recent profitability, dividends have been unreliable and volatile over the past decade. Recent earnings reported a net income of SEK 488.4 million for nine months, contrasting with past losses, yet third-quarter results showed negative revenue and net loss, raising concerns about future stability.

• Click to explore a detailed breakdown of our findings in Investment AB Öresund's dividend report.
• Insights from our recent valuation report point to the potential overvaluation of Investment AB Öresund shares in the market.

Skandinaviska Enskilda Banken (OM:SEB A)

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

Overview: Skandinaviska Enskilda Banken AB (publ) offers corporate, retail, investment, and private banking services with a market cap of approximately SEK304.83 billion.

Operations: Skandinaviska Enskilda Banken AB (publ) generates revenue from several segments, including Large Corporates & Financial Institutions at SEK32.00 billion, Corporate & Private Customers at SEK25.61 billion, Baltic operations at SEK13.46 billion, Private Wealth Management & Family Office at SEK4.63 billion, Life insurance services at SEK3.80 billion, and Asset Management contributing SEK3.30 billion.

Dividend Yield: 5.7%

Skandinaviska Enskilda Banken's dividend yield is attractive, ranking in the top 25% of Swedish dividend payers. Despite its appealing yield, the bank's dividend history has been volatile over the past decade. Recent earnings showed a decline in net income to SEK 9.45 billion for Q3 2024 from SEK 10.58 billion a year ago, reflecting potential challenges in sustaining dividends. However, with a payout ratio of 47.7%, current dividends are well-covered by earnings.

• Navigate through the intricacies of Skandinaviska Enskilda Banken with our comprehensive dividend report here.
• Upon reviewing our latest valuation report, Skandinaviska Enskilda Banken's share price might be too pessimistic.

Summing It All Up

• Click here to access our complete index of 22 Top Swedish Dividend Stocks.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Looking For Alternative Opportunities?

• 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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