Stock Analysis

Top 3 Swedish Dividend Stocks For August 2024

Published August 27, 2024

As the European economy sees a boost from the Paris Olympics and Sweden's Riksbank reduces borrowing costs, investors are increasingly looking at stable income-generating opportunities. In this context, dividend stocks present an attractive option for those seeking consistent returns amidst fluctuating market conditions. A good dividend stock typically combines a reliable payout history with strong fundamentals, making it a resilient choice in today's dynamic economic landscape.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Bredband2 i Skandinavien (OM:BRE2)	4.32%	★★★★★★
Betsson (OM:BETS B)	5.65%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.71%	★★★★★☆
Zinzino (OM:ZZ B)	3.91%	★★★★★☆
HEXPOL (OM:HPOL B)	3.51%	★★★★★☆
Axfood (OM:AXFO)	3.12%	★★★★★☆
Duni (OM:DUNI)	4.93%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.45%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.74%	★★★★★☆
Loomis (OM:LOOMIS)	3.70%	★★★★☆☆

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

Let's take a closer look at a couple of our picks from the screened companies.

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 SEK320.17 billion.

Operations: Skandinaviska Enskilda Banken AB (publ) generates revenue from various segments including Life (SEK3.89 billion), Baltic (SEK13.82 billion), Asset Management (SEK3.22 billion), Large Corporates & Financial Institutions (SEK31.90 billion), Private Wealth Management & Family Office (SEK4.56 billion), and Corporate & Private Customers excluding Private Wealth Management & Family Office (SEK25.65 billion).

Dividend Yield: 5.4%

Skandinaviska Enskilda Banken (SEB A) offers a dividend yield of 5.45%, placing it in the top 25% of Swedish dividend payers. The current payout ratio is 46.5%, indicating dividends are well covered by earnings, with future coverage forecasted at 59.3%. However, SEB A's dividend history has been volatile and unreliable over the past decade. Recent Q2 earnings showed slight declines in net income and EPS compared to last year but remained stable overall.

OM:SEB A Dividend History as at Aug 2024

SSAB (OM:SSAB A)

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

Overview: SSAB AB (publ) produces and sells steel products in Sweden, Finland, the rest of Europe, the United States, and internationally with a market cap of SEK50.21 billion.

Operations: SSAB AB (publ) generates revenue from several segments, including Tibnor (SEK12.50 billion), SSAB Europe (SEK43.44 billion), SSAB Americas (SEK26.81 billion), Ruukki Construction (SEK5.41 billion), and SSAB Special Steels (SEK30.49 billion).

Dividend Yield: 9.8%

SSAB's dividend yield of 9.76% places it among the top 25% of Swedish dividend payers, with a payout ratio of 48.7%, indicating dividends are well covered by earnings and cash flows (49.5%). However, its dividend history has been unstable and volatile over the past six years. Recent Q2 earnings showed a decline in sales to SEK 28.28 billion from SEK 31.78 billion a year ago, with net income dropping to SEK 2.42 billion from SEK 3.92 billion last year.

OM:SSAB A Dividend History as at Aug 2024

Zinzino (OM:ZZ B)

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

Overview: Zinzino AB (publ) is a direct sales company that offers dietary supplements and skincare products in Sweden and internationally, with a market cap of SEK2.63 billion.

Operations: Zinzino AB (publ) generates revenue primarily through its Zinzino (including VMA Life) segment, which accounts for SEK1.74 billion, and its Faun segment, contributing SEK161.20 million.

Dividend Yield: 3.9%

Zinzino's dividend payments are well-covered by both earnings (payout ratio: 59.9%) and cash flows (cash payout ratio: 59.3%). The company has maintained stable dividends over the past decade, although its current yield of 3.91% is lower than the top quartile in Sweden. Recent sales reports indicate robust revenue growth, with a 19% increase for January-July 2024 to SEK 1.13 billion and strategic expansions into new markets like Serbia potentially boosting future performance further.

Summing It All Up

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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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