Stock Analysis

October 2024's Top Dividend Stocks On The Swedish Exchange

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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

NameDividend YieldDividend 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.

OM:AXFO Dividend History as at Oct 2024

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.

OM:BILI A Dividend History as at Oct 2024

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.

OM:REJL B Dividend History as at Oct 2024

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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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