Exploring Top Dividend Stocks In Sweden June 2024

As of June 2024, the Swedish market, like much of Europe, is navigating a landscape marked by rising inflation and policy adjustments aimed at stabilizing economic conditions. These broader economic factors set a critical backdrop for investors considering dividend stocks, which are often valued for their potential to offer steady income in fluctuating markets.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Zinzino (OM:ZZ B)	4.25%	★★★★★★
Betsson (OM:BETS B)	6.16%	★★★★★☆
Loomis (OM:LOOMIS)	4.24%	★★★★★☆
HEXPOL (OM:HPOL B)	3.17%	★★★★★☆
Axfood (OM:AXFO)	3.04%	★★★★★☆
Duni (OM:DUNI)	4.53%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.11%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.67%	★★★★★☆
Husqvarna (OM:HUSQ B)	3.49%	★★★★☆☆
AB Traction (OM:TRAC B)	4.05%	★★★★☆☆

Click here to see the full list of 22 stocks from our Top Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

G5 Entertainment (OM:G5EN)

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

Overview: G5 Entertainment AB (publ) specializes in developing and publishing free-to-play games for smartphones, tablets, and personal computers, primarily operating out of Sweden with a market capitalization of SEK 1.10 billion.

Operations: G5 Entertainment AB generates revenue primarily through the development and sales of casual games, which amounted to SEK 1.27 billion.

Dividend Yield: 5.7%

G5 Entertainment, a Swedish game developer, offers a dividend yield of 5.72%, placing it in the top quartile of Swedish dividend stocks. Despite a recent dip in quarterly sales to SEK 297.41 million and net income to SEK 37.48 million, its dividends are well-supported by both earnings and cash flow with payout ratios at 54.4% and 36.1%, respectively. However, G5's dividend history is relatively short at seven years with an unstable track record, suggesting caution for long-term stability seekers.

• Click here to discover the nuances of G5 Entertainment with our detailed analytical dividend report.
• Our valuation report here indicates G5 Entertainment may be undervalued.

Softronic (OM:SOF B)

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

Overview: Softronic AB (publ) specializes in IT and management services mainly in Sweden, with a market capitalization of approximately SEK 1.15 billion.

Operations: Softronic AB generates its revenue primarily from computer services, totaling SEK 834.42 million.

Dividend Yield: 6.2%

Softronic, despite a recent slight decline in quarterly sales to SEK 230.1 million and net income to SEK 18 million, maintains a dividend yield of 6.19%, ranking it among the top 25% of Swedish dividend payers. However, its dividends are not well-supported by cash flows with a high cash payout ratio of 138% and have shown volatility over the past decade. Although its Price-To-Earnings ratio at 14x is favorable compared to the Swedish market average of 23.3x, concerns about the sustainability and reliability of its dividends persist due to coverage issues by earnings and fluctuating payments.

• Take a closer look at Softronic's potential here in our dividend report.
• Our valuation report unveils the possibility Softronic's shares may be trading at a premium.

Zinzino (OM:ZZ B)

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

Overview: Zinzino AB, a direct sales company based in Sweden, offers dietary supplements and skincare products globally, with a market capitalization of approximately SEK 2.42 billion.

Operations: Zinzino AB generates its revenue primarily from the sale of dietary supplements and skincare products.

Dividend Yield: 4.2%

Zinzino has demonstrated a consistent increase in dividend payments over the last decade, with a stable annual yield of 4.25%, placing it in the top 25% of Swedish dividend stocks. The dividends are well-supported by both earnings and cash flows, with payout ratios at 59.9% and 59.3% respectively, indicating sustainability. Recent financial updates show robust revenue growth, with a notable 35% increase year-over-year to SEK 163.7 million as of April 2024, reinforcing the company's financial health and potential for maintaining its dividend commitments.

• Click here and access our complete dividend analysis report to understand the dynamics of Zinzino.
• Insights from our recent valuation report point to the potential undervaluation of Zinzino shares in the market.

Key Takeaways

• Investigate our full lineup of 22 Top Dividend Stocks right here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Seeking Other Investments?

• 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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