October 2024's Top Dividend Stocks On The Swedish Exchange

As the European Central Bank's recent rate cuts fuel optimism for further monetary easing, the Swedish market is experiencing a period of cautious optimism. With major stock indexes showing positive momentum, investors are increasingly focusing on dividend stocks as a stable income source in this evolving economic landscape. A good dividend stock typically offers consistent payouts and demonstrates resilience amid fluctuating market conditions, making them appealing to those seeking reliable returns amidst global economic shifts.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Bredband2 i Skandinavien (OM:BRE2)	4.71%	★★★★★★
Zinzino (OM:ZZ B)	3.42%	★★★★★☆
HEXPOL (OM:HPOL B)	3.84%	★★★★★☆
Axfood (OM:AXFO)	3.12%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.36%	★★★★★☆
Duni (OM:DUNI)	4.96%	★★★★★☆
Avanza Bank Holding (OM:AZA)	5.09%	★★★★★☆
Loomis (OM:LOOMIS)	3.95%	★★★★☆☆
Afry (OM:AFRY)	3.10%	★★★★☆☆
Bahnhof (OM:BAHN B)	3.79%	★★★★☆☆

Click here to see the full list of 23 stocks from our Top Swedish Dividend Stocks screener.

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

Axfood (OM:AXFO)

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

Overview: Axfood AB (publ) operates in the food retail and wholesale sectors mainly in Sweden, with a market cap of SEK58.72 billion.

Operations: Axfood AB's revenue segments include Dagab at SEK75.09 billion, Willys at SEK44.82 billion, Snabbgross at SEK5.38 billion, Joint-Group at SEK1.45 billion, and Home Purchase at SEK7.67 billion.

Dividend Yield: 3.1%

Axfood offers a stable dividend history with consistent growth over the past decade, supported by a sustainable payout ratio of 76.8% from earnings and 39.3% from cash flows. Despite its reliable dividend track record, the yield of 3.13% is below Sweden's top quartile for dividend payers. Recent approval for the acquisition of City Gross may enhance Axfood's market position and growth prospects, potentially impacting future dividends positively amidst executive leadership changes.

• Delve into the full analysis dividend report here for a deeper understanding of Axfood.
• According our valuation report, there's an indication that Axfood's share price might be on the expensive side.

Bilia (OM:BILI A)

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

Overview: Bilia AB (publ) is a full-service supplier for car ownership in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK11.36 billion.

Operations: Bilia AB (publ) generates revenue from its operations as a comprehensive car ownership service provider across Sweden, Norway, Luxembourg, and Belgium.

Dividend Yield: 5.4%

Bilia's dividend yield of 5.37% ranks in the top quartile of Swedish dividend payers, yet its dividends have been volatile over the past decade. The payout ratio stands at 84.7%, indicating coverage by earnings but not by free cash flows, raising sustainability concerns. Recent Q3 results show a decline in net income to SEK 105 million from SEK 169 million last year, alongside shrinking profit margins and high debt levels, potentially affecting future dividend reliability.

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

Rejlers (OM:REJL B)

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

Overview: Rejlers AB (publ) provides technical and engineering consultancy services across Sweden, Finland, Norway, and the United Arab Emirates with a market cap of SEK3.04 billion.

Operations: Rejlers AB generates revenue from its consultancy services with SEK2.63 billion from Sweden, SEK1.37 billion from Finland, and SEK304.40 million from Norway (including Embriq).

Dividend Yield: 3.3%

Rejlers' dividend yield of 3.27% is below the top quartile for Swedish dividend stocks, and its dividend history has been volatile over the past decade. However, the dividends are well-covered by both earnings and cash flows, with a payout ratio of 50% and a cash payout ratio of 30.7%. Despite an unstable track record, Rejlers' dividends have grown over ten years. Recent projects in carbon storage and railway infrastructure may bolster future profitability.

• Take a closer look at Rejlers' potential here in our dividend report.
• Our valuation report here indicates Rejlers may be undervalued.

Where To Now?

• Gain an insight into the universe of 23 Top Swedish Dividend Stocks by clicking here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Searching for a Fresh Perspective?

• 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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