BioGaia And Two More Top Dividend Stocks On The Swedish Exchange

Amidst a backdrop of global economic uncertainties and shifting market dynamics, the Swedish stock market presents unique opportunities for investors looking to enhance their portfolios with dividend stocks. As investors globally navigate through the complexities of trade tensions and technological disruptions, dividend-paying stocks like BioGaia offer a semblance of stability and potential for steady income.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Betsson (OM:BETS B)	6.18%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.68%	★★★★★☆
Zinzino (OM:ZZ B)	3.87%	★★★★★☆
HEXPOL (OM:HPOL B)	3.35%	★★★★★☆
Duni (OM:DUNI)	4.96%	★★★★★☆
Axfood (OM:AXFO)	3.25%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.32%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.88%	★★★★★☆
Loomis (OM:LOOMIS)	3.91%	★★★★☆☆
Bahnhof (OM:BAHN B)	3.85%	★★★★☆☆

Click here to see the full list of 19 stocks from our Top Swedish Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

BioGaia (OM:BIOG B)

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

Overview: BioGaia AB is a healthcare company specializing in probiotic products with a market capitalization of approximately SEK 12.92 billion.

Operations: BioGaia AB generates its revenue primarily through the sale of probiotic products across global markets.

Dividend Yield: 5.4%

BioGaia's recent earnings show a robust increase, with Q2 sales up to SEK 384.12 million and net income at SEK 111.01 million. Despite a healthy payout ratio of 47.8%, indicating earnings cover dividends well, its dividend sustainability is questionable due to a high cash payout ratio of 193.4%. The company’s strategic expansion into Australia and New Zealand could bolster future prospects, yet its dividends have shown volatility over the past decade, reflecting some risk for dividend-focused investors.

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

HEXPOL (OM:HPOL B)

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

Overview: HEXPOL AB (publ) specializes in the development, manufacture, and sale of polymer compounds and engineered products across Sweden, Europe, the Americas, and Asia with a market capitalization of SEK 41.16 billion.

Operations: HEXPOL AB generates SEK 20.18 billion from its Compounding segment and SEK 1.61 billion from its Engineered Products division.

Dividend Yield: 3.3%

HEXPOL AB, despite a recent dip in sales and net income as reported on July 17, 2024, maintains a moderate dividend yield of 3.35%, underperforming against the top quartile of Swedish dividend stocks at 4.15%. The company's dividends are well-supported by earnings and cash flows with payout ratios of 55.4% and 57.8% respectively, indicating sustainability. Dividend reliability is underscored by a decade-long stability in payouts, further bolstered by an increase to SEK 6 per share announced on April 26, reflecting a positive outlook for continuity despite leadership changes with Klas Dahlberg stepping in as CEO.

• Click here and access our complete dividend analysis report to understand the dynamics of HEXPOL.
• According our valuation report, there's an indication that HEXPOL's share price might be on the cheaper side.

Skandinaviska Enskilda Banken (OM:SEB A)

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

Overview: Skandinaviska Enskilda Banken AB (publ), commonly known as SEB, is a Swedish financial services group offering corporate, retail, investment, and private banking services with a market capitalization of approximately SEK 328.01 billion.

Operations: Skandinaviska Enskilda Banken AB generates revenue from various segments including SEK 25.65 billion from Corporate & Private Customers (excluding Private Wealth Management & Family Office), SEK 31.90 billion from Large Corporates & Financial Institutions, SEK 4.56 billion from Private Wealth Management & Family Office, SEK 3.22 billion from Asset Management, and SEK 13.82 billion from Baltic operations.

Dividend Yield: 5.3%

Skandinaviska Enskilda Banken (SEB A) offers a dividend yield of 5.32%, placing it in the upper quartile of Swedish dividend stocks, supported by a payout ratio of 46.5%. Despite this, SEB A's dividends have shown volatility over the past decade and earnings are expected to decline by an average of 6.5% annually over the next three years. Recent financials indicate slight declines in net interest income and net income for Q2 2024, suggesting potential challenges ahead in maintaining its dividend payouts.

• Navigate through the intricacies of Skandinaviska Enskilda Banken with our comprehensive dividend report here.
• In light of our recent valuation report, it seems possible that Skandinaviska Enskilda Banken is trading beyond its estimated value.

Make It Happen

• Embark on your investment journey to our 19 Top Swedish Dividend Stocks selection here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

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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