Top 3 Swedish Dividend Stocks For August 2024

As hopes for interest rate cuts grow in Europe and major stock indexes post strong gains, the Swedish market has shown resilience amid global economic uncertainties. With this backdrop, identifying robust dividend stocks becomes crucial for investors seeking steady income and potential growth. In this article, we will explore three top Swedish dividend stocks that stand out in August 2024.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Bredband2 i Skandinavien (OM:BRE2)	4.35%	★★★★★★
Betsson (OM:BETS B)	5.59%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.75%	★★★★★☆
Zinzino (OM:ZZ B)	4.03%	★★★★★☆
HEXPOL (OM:HPOL B)	3.57%	★★★★★☆
Axfood (OM:AXFO)	3.17%	★★★★★☆
Duni (OM:DUNI)	4.95%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.53%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.80%	★★★★★☆
SSAB (OM:SSAB A)	9.90%	★★★★☆☆

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

Underneath we present a selection of stocks filtered out by our screen.

Bredband2 i Skandinavien (OM:BRE2)

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

Overview: Bredband2 i Skandinavien AB (publ) offers data communication and security solutions to individuals and companies in Sweden, with a market cap of SEK1.98 billion.

Operations: Bredband2 i Skandinavien AB (publ) generates revenue primarily from its National Broadband Service, amounting to SEK1.65 billion.

Dividend Yield: 4.3%

Bredband2 i Skandinavien reported strong earnings growth, with second-quarter sales reaching SEK 429.55 million and net income at SEK 24.35 million. The company’s dividend yield of 4.35% is among the top in Sweden, and its dividends have been stable and growing over the past decade. With a payout ratio of 87.6% covered by earnings and a cash payout ratio of 39.1%, BRE2's dividend payments are both reliable and sustainable, making it an attractive option for dividend investors.

• Click to explore a detailed breakdown of our findings in Bredband2 i Skandinavien's dividend report.
• Our valuation report here indicates Bredband2 i Skandinavien may be overvalued.

Eolus Vind (OM:EOLU B)

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

Overview: Eolus Vind AB (publ) develops, constructs, and operates renewable energy assets across several countries including Sweden and the United States, with a market cap of SEK1.58 billion.

Operations: Eolus Vind AB (publ) generates revenue primarily through the development, construction, and operation of renewable energy projects in various countries including Sweden, Norway, Finland, the United States, Poland, Spain, and the Baltic states.

Dividend Yield: 3.5%

Eolus Vind's dividend payments are well-covered by earnings (10.1% payout ratio) and cash flows (55.5% cash payout ratio), although they have been volatile over the past decade. The company’s dividend yield of 3.55% is lower than the top 25% of Swedish dividend payers. Despite recent strong earnings growth, future earnings are forecast to decline, potentially impacting dividend reliability. Recent business expansions include applying for permission to build the Skidbladner offshore wind farm, enhancing long-term prospects.

• Dive into the specifics of Eolus Vind here with our thorough dividend report.
• Our valuation report unveils the possibility Eolus Vind's shares may be trading at a discount.

Nordea Bank Abp (OM:NDA SE)

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

Overview: Nordea Bank Abp provides banking products and services across Sweden, Finland, Norway, Denmark, and internationally with a market cap of SEK418.83 billion.

Operations: Nordea Bank Abp generates revenue primarily from Personal Banking (€4.78 billion), Business Banking (€3.59 billion), Large Corporates & Institutions (€2.48 billion), and Asset and Wealth Management (€1.44 billion).

Dividend Yield: 8.7%

Nordea Bank Abp's dividend yield of 8.75% places it among the top 25% of Swedish dividend payers. The bank's dividends are currently covered by earnings with a payout ratio of 63.8%, and they are forecast to remain sustainable in three years at 68.2%. Despite a history of volatile and unreliable dividend payments, recent earnings growth and good relative value compared to peers suggest potential stability for future dividends. Recent legal issues may pose risks but have been provisioned for adequately according to the company’s assessments.

• Unlock comprehensive insights into our analysis of Nordea Bank Abp stock in this dividend report.
• Upon reviewing our latest valuation report, Nordea Bank Abp's share price might be too pessimistic.

Summing It All Up

• Investigate our full lineup of 22 Top Swedish Dividend Stocks right here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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