Top 3 Dividend Stocks On The Swedish Exchange In August 2024

As global markets navigate a mix of economic signals and investor sentiment, the Swedish market has shown resilience with steady performance across various sectors. Amid these dynamics, dividend stocks have garnered attention for their potential to provide consistent income streams. In this context, identifying strong dividend stocks involves looking at companies with stable earnings, robust cash flows, and a commitment to returning value to shareholders. Here are three top dividend stocks on the Swedish Exchange in August 2024 that stand out for their reliability and potential returns.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Betsson (OM:BETS B)	5.87%	★★★★★☆
Zinzino (OM:ZZ B)	3.84%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.49%	★★★★★☆
HEXPOL (OM:HPOL B)	3.34%	★★★★★☆
Axfood (OM:AXFO)	3.20%	★★★★★☆
Duni (OM:DUNI)	4.92%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.16%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.80%	★★★★★☆
Loomis (OM:LOOMIS)	3.67%	★★★★☆☆
Bahnhof (OM:BAHN B)	3.85%	★★★★☆☆

Click here to see the full list of 20 stocks from our Top Swedish Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Betsson (OM:BETS B)

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

Overview: Betsson AB (publ) operates and manages online gaming businesses across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK17.62 billion.

Operations: Betsson AB (publ) generates its revenue primarily from its Casinos & Resorts segment, which amounts to €1.01 billion.

Dividend Yield: 5.9%

Betsson's dividend payments have increased over the past decade, though they have been volatile with occasional drops over 20%. Despite this, its current dividend yield of 5.87% is among the top 25% in Sweden. The company's dividends are covered by earnings (payout ratio: 50.3%) and cash flows (cash payout ratio: 50.8%). Recent earnings showed a slight decrease in net income for Q2 2024 to €45.5 million from €50.2 million last year, but sales grew to €271.5 million from €236.8 million, reflecting overall growth potential despite some volatility in profitability and dividends.

• Delve into the full analysis dividend report here for a deeper understanding of Betsson.
• Insights from our recent valuation report point to the potential undervaluation of Betsson shares in the market.

FM Mattsson (OM:FMM B)

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

Overview: FM Mattsson AB (publ) develops, manufactures, and sells water taps and related products for bathrooms and kitchens across several European countries with a market cap of SEK2.17 billion.

Operations: FM Mattsson AB (publ) generates revenue from two main segments: SEK783.23 million from International markets and SEK1.12 billion from Nordic Countries.

Dividend Yield: 4.8%

FM Mattsson's dividend yield of 4.83% places it in the top 25% of Swedish dividend payers, with a payout ratio of 86.3%, indicating dividends are covered by earnings and cash flows (cash payout ratio: 49.5%). However, the company has only paid dividends for six years, suggesting limited historical reliability. Recent Q1 2024 earnings showed a decline in sales to SEK 493.4 million and net income to SEK 28.2 million, reflecting some financial pressure despite stable dividend coverage.

• Click here and access our complete dividend analysis report to understand the dynamics of FM Mattsson.
• Our comprehensive valuation report raises the possibility that FM Mattsson is priced lower than what may be justified by its financials.

Loomis (OM:LOOMIS)

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

Overview: Loomis AB (publ) offers solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of SEK23.76 billion.

Operations: Loomis AB (publ) generates revenue primarily from its operations in Europe and Latin America (SEK14.32 billion), the United States of America (SEK15.45 billion), and Loomis Pay (SEK77 million).

Dividend Yield: 3.7%

Loomis has shown consistent dividend growth over the past decade, supported by a reasonable payout ratio of 59.4% and a low cash payout ratio of 26.3%, ensuring dividends are well covered by earnings and cash flows. However, its dividend history is volatile with occasional significant drops. Recent buybacks totaling SEK 199.75 million may enhance shareholder value, while Q2 2024 results show steady sales growth to SEK 7.64 billion and net income improvement to SEK 396 million.

• Unlock comprehensive insights into our analysis of Loomis stock in this dividend report.
• Our valuation report unveils the possibility Loomis' shares may be trading at a discount.

Summing It All Up

• Access the full spectrum of 20 Top Swedish Dividend Stocks by clicking on this link.
• 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

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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