Bilia Among Three Top Dividend Stocks On Swedish Exchange

As global markets respond to fluctuating economic indicators, Sweden's stock exchange remains a focal point for investors seeking stability and returns through dividend-paying stocks. In this context, understanding the characteristics of top-performing dividend stocks becomes crucial, especially in a market environment where cautious optimism is being balanced with strategic investment choices.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Betsson (OM:BETS B)	5.61%	★★★★★☆
Loomis (OM:LOOMIS)	4.50%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.74%	★★★★★☆
Zinzino (OM:ZZ B)	3.77%	★★★★★☆
Duni (OM:DUNI)	4.89%	★★★★★☆
HEXPOL (OM:HPOL B)	3.38%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.31%	★★★★★☆
Axfood (OM:AXFO)	3.26%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.70%	★★★★★☆
Bilia (OM:BILI A)	4.37%	★★★★☆☆

Click here to see the full list of 21 stocks from our Top Swedish Dividend Stocks screener.

Let's uncover some gems from our specialized screener.

Bilia (OM:BILI A)

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

Overview: Bilia AB (publ) is a full-service supplier for car ownership, operating across Sweden, Norway, Luxembourg, and Belgium with a market capitalization of SEK 13.89 billion.

Operations: Bilia AB generates its revenue primarily through car sales and services, with SEK 19.28 billion from Car - Sweden, SEK 7.16 billion from Car - Norway, SEK 3.61 billion from Car - Western Europe, and additional revenues of SEK 6.16 billion from Service - Sweden and SEK 2.16 billion from Service - Norway; the company also earns SEK 654 million from Service - Western Europe.

Dividend Yield: 4.4%

Bilia's recent dividend announcement of SEK 6.60, payable in four installments, reflects a cautious approach amid declining net income and sales from the previous year—SEK 156 million and SEK 9.37 billion respectively. Despite a top quartile yield of 4.37%, the dividends are poorly supported by earnings and free cash flow, with a high cash payout ratio of 518.9%. The firm's partnership with Volvo Car Sweden may bolster customer experience but doesn't directly mitigate financial pressures or dividend sustainability concerns.

• Dive into the specifics of Bilia here with our thorough dividend report.
• Our expertly prepared valuation report Bilia implies its share price may be lower than expected.

Husqvarna (OM:HUSQ B)

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

Overview: Husqvarna AB (publ) specializes in manufacturing and distributing outdoor power products, watering products, and lawn care equipment, with a market capitalization of approximately SEK 51.62 billion.

Operations: Husqvarna AB's revenue is primarily generated from three segments: Gardena at SEK 13.06 billion, Husqvarna Construction at SEK 8.23 billion, and Husqvarna Forest & Garden at SEK 29.38 billion.

Dividend Yield: 3.3%

Husqvarna's recent partnership with Liverpool FC could boost its global brand visibility, potentially impacting long-term financial health and dividend attractiveness. However, current dividends of SEK 3.00 per share are not well-supported by earnings or cash flows, with a high payout ratio of 92.8% and a cash payout ratio of 58.6%. Despite a reliable dividend history over the past decade, the sustainability is questionable given these financial pressures and a modest yield of 3.32%.

• Click here to discover the nuances of Husqvarna with our detailed analytical dividend report.
• Our valuation report unveils the possibility Husqvarna's shares may be trading at a discount.

Zinzino (OM:ZZ B)

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

Overview: Zinzino AB (publ), a direct sales company based in Sweden, offers dietary supplements and skincare products globally, with a market capitalization of approximately SEK 2.73 billion.

Operations: Zinzino AB generates its revenue primarily through two segments: Faun, which contributed SEK 161.20 million, and Zinzino (including VMA Life), which added SEK 1737.25 million.

Dividend Yield: 3.8%

Zinzino offers a stable dividend yield of 3.77%, slightly below the top Swedish dividend payers. It has maintained consistent dividend growth over the past decade, supported by a reasonable payout ratio of 59.9% and similar cash flow coverage, ensuring sustainability. Despite trading at a significant discount to its estimated fair value, its yield remains less attractive relative to leading market counterparts. Recent expansions into Serbia and strategic acquisitions in the US and Asia highlight proactive growth strategies, potentially bolstering future revenue streams which could support ongoing dividend commitments.

• Take a closer look at Zinzino's potential here in our dividend report.
• The analysis detailed in our Zinzino valuation report hints at an deflated share price compared to its estimated value.

Taking Advantage

• Take a closer look at our Top Swedish Dividend Stocks list of 21 companies by clicking here.
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Interested In Other Possibilities?

• 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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