3 Swedish Dividend Stocks To Consider With Up To 5.2% Yield

As the European Central Bank continues to navigate through interest rate adjustments amidst signs of weakening economic growth and slowing inflation, investors are increasingly looking for stable income sources in the Swedish market. In this context, dividend stocks offer an attractive proposition, combining potential capital appreciation with regular income. A good dividend stock typically boasts a strong balance sheet and consistent earnings, making it resilient during periods of economic uncertainty. Here are three Swedish dividend stocks to consider that offer yields up to 5.2%.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Betsson (OM:BETS B)	5.71%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.86%	★★★★★☆
Zinzino (OM:ZZ B)	3.64%	★★★★★☆
HEXPOL (OM:HPOL B)	3.61%	★★★★★☆
Bredband2 i Skandinavien (OM:BRE2)	4.35%	★★★★★☆
Axfood (OM:AXFO)	3.02%	★★★★★☆
Duni (OM:DUNI)	5.09%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.45%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.82%	★★★★★☆
Loomis (OM:LOOMIS)	3.66%	★★★★☆☆

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

We're going to check out a few of the best picks from our screener tool.

Avanza Bank Holding (OM:AZA)

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

Overview: Avanza Bank Holding AB (publ) and its subsidiaries provide various savings, pension, and mortgage products in Sweden, with a market cap of SEK37.52 billion.

Operations: Avanza Bank Holding AB (publ) generates revenue primarily from its commercial operations, amounting to SEK3.96 billion.

Dividend Yield: 4.8%

Avanza Bank Holding's dividend payments have been volatile over the past 10 years, though they have increased overall. The current payout ratio of 87.3% indicates dividends are covered by earnings, and a cash payout ratio of 55.8% suggests coverage by cash flows is also sustainable. Despite its top-tier dividend yield (4.82%), recent growth in customer base and net inflows highlight operational strength, but investors should remain cautious due to the unstable dividend history.

• Get an in-depth perspective on Avanza Bank Holding's performance by reading our dividend report here.
• Our valuation report unveils the possibility Avanza Bank Holding's shares may be trading at a premium.

Knowit (OM:KNOW)

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

Overview: Knowit AB (publ) is a consultancy company that develops digital solutions, with a market cap of SEK4.55 billion.

Operations: Knowit AB (publ) generates revenue through four primary segments: Insight (SEK898.95 million), Solutions (SEK3.90 billion), Experience (SEK1.44 billion), and Connectivity (SEK1.02 billion).

Dividend Yield: 3.1%

Knowit AB's recent earnings report showed a decline in both revenue (SEK 1.68 billion) and net income (SEK 3 million) for Q2 2024 compared to the previous year. The company's dividend payments have been volatile over the past decade, though they have increased overall. Despite a relatively low dividend yield of 3.13%, dividends are covered by earnings (77.3% payout ratio) and cash flows (41.6% cash payout ratio), suggesting sustainability amidst financial fluctuations.

• Delve into the full analysis dividend report here for a deeper understanding of Knowit.
• Our expertly prepared valuation report Knowit implies its share price may be lower than expected.

Solid Försäkringsaktiebolag (OM:SFAB)

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

Overview: Solid Försäkringsaktiebolag (OM:SFAB) offers non-life insurance services to private and business customers across several countries, including Sweden, Denmark, Norway, Finland, Germany, Switzerland and internationally with a market cap of SEK1.58 billion.

Operations: Solid Försäkringsaktiebolag (OM:SFAB) generates revenue from three main segments: Product (SEK320.51 million), Assistance (SEK351.63 million), and Personal Safety (SEK435.09 million).

Dividend Yield: 5.2%

Solid Försäkringsaktiebolag's recent earnings report indicates steady growth, with net income for Q2 2024 at SEK 40.95 million, up from SEK 39.21 million a year ago. The company has initiated share buybacks to enhance capital structure and shareholder value. While its dividend yield is among the top 25% in Sweden, it’s too early to judge reliability due to the recent start of dividend payments. Dividends are well-covered by both earnings (49.1% payout ratio) and cash flows (73.7% cash payout ratio).

• Click to explore a detailed breakdown of our findings in Solid Försäkringsaktiebolag's dividend report.
• According our valuation report, there's an indication that Solid Försäkringsaktiebolag's share price might be on the cheaper side.

Taking Advantage

• Delve into our full catalog of 21 Top Swedish Dividend Stocks 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.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Curious About Other Options?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com