Amidst a backdrop of mixed global economic signals, the Swedish market presents an interesting opportunity for investors seeking steady returns. As we explore leading Swedish dividend stocks offering yields up to 4.5%, it's crucial to consider how such investments can provide a semblance of stability in times of fluctuating market conditions.
Overview: Afry AB specializes in engineering, design, and advisory services across the infrastructure, industry, energy, and digitalization sectors in North and South America, Finland, and Central Europe with a market cap of approximately SEK 20.96 billion.
Operations: Afry AB generates revenue through various segments, with Infrastructure contributing SEK 10.26 billion, Process Industries at SEK 5.53 billion, Industrial & Digital Solutions totaling SEK 6.77 billion, Energy at SEK 3.59 billion, and Management Consulting bringing in SEK 1.63 billion.
Dividend Yield: 3%
Afry's recent AGM confirmed a dividend of SEK 5.50 per share, with a record date on April 25, 2024, and payment by April 30, 2024. Despite trading at a significant discount to its estimated fair value and maintaining dividends well-covered by earnings (61.1% payout ratio) and cash flows (37% cash payout ratio), Afry presents challenges with an unstable dividend track record over the past decade and a low yield of 3% compared to Sweden's top dividend payers. Moreover, Q1 results showed a slight decline in sales and net income year-over-year.
Overview: FM Mattsson AB (publ) specializes in the development, manufacture, and sale of water taps and related products for bathrooms and kitchens across Sweden, Norway, Denmark, Finland, Benelux, the United Kingdom, Germany, and Italy with a market capitalization of SEK 2.28 billion.
Operations: FM Mattsson AB generates revenue primarily through its operations in the Nordic countries, where it earned SEK 1.12 billion, and internationally, with earnings of SEK 783.23 million.
Dividend Yield: 4.6%
FM Mattsson's dividend yield stands at 4.6%, ranking in the top quartile of Swedish dividend payers. Despite a relatively short history of dividend payments, less than 10 years, the dividends are supported by robust coverage from earnings and cash flows, with payout ratios at 86.3% and 49.5% respectively. However, recent financials indicate a downturn; Q1 sales dropped to SEK 493.4 million from SEK 533.2 million year-over-year, and net income fell to SEK 28.2 million from SEK 52.9 million, reflecting potential pressures on future payouts.
Overview: Zinzino AB, a direct sales company based in Sweden, operates internationally offering dietary supplements and skincare products with a market capitalization of approximately SEK 2.51 billion.
Operations: Zinzino AB generates its revenue primarily from two segments: Faun, which contributed SEK 161.20 million, and Zinzino (including VMA Life), which added SEK 1737.25 million to the total revenue.
Dividend Yield: 4.1%
Zinzino AB's dividend yield is modest at 4.09%, slightly under the top quartile for Swedish stocks. Despite this, dividends have shown consistency over the past decade, supported by a stable payout ratio of 59.9% and a similar cash payout ratio. Recent financials reveal robust growth with a significant revenue increase to SEK 802.2 million in May 2024, up 21% year-over-year, and net income rising to SEK 35.44 million in Q1 from SEK 29.27 million last year, indicating sound coverage for ongoing dividend payments.
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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.
