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As global markets show signs of recovery and optimism grows for economic stability, the Swedish stock market has also been gaining traction. In this favorable environment, dividend stocks in Sweden stand out as attractive options for investors seeking steady income. A good dividend stock typically offers a reliable payout, strong financial health, and potential for growth—all crucial factors in the current market climate.

Top 10 Dividend Stocks In Sweden

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

Let's review some notable picks from our screened stocks.

Bahnhof

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

Overview: Bahnhof AB (publ) operates in the Internet and telecommunications sector across Sweden and Europe, with a market cap of SEK5.45 billion.

Operations: Bahnhof AB (publ) generates revenue primarily from the Retail Market, which accounts for SEK1.30 billion, and the Corporate Market (excluding Typhoon), contributing SEK606.24 million.

Dividend Yield: 3.9%

Bahnhof's dividend payments have been stable and reliable over the past 10 years, demonstrating growth with little volatility. However, its current dividend yield of 3.94% is lower than the top 25% of Swedish market payers. Although dividends are covered by free cash flow (76.9%), they are not well covered by earnings due to a high payout ratio (97.5%). The stock trades at 33.1% below our fair value estimate, indicating potential undervaluation.

• Click here and access our complete dividend analysis report to understand the dynamics of Bahnhof.

• Our expertly prepared valuation report Bahnhof implies its share price may be too high.

FM Mattsson

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

Overview: FM Mattsson AB (publ) develops, manufactures, and sells water taps and related products for bathrooms and kitchens across several European countries with a market cap of SEK 2.16 billion.

Operations: FM Mattsson AB (publ) generates revenue from two primary segments: SEK 783.23 million from international markets and SEK 1.12 billion from Nordic countries.

Dividend Yield: 4.9%

FM Mattsson's dividend payments have been growing steadily, though the company has only a 7-year track record. Its dividends are well covered by cash flows (49.5% payout ratio) and earnings (86.3% payout ratio). The stock is trading at 62.5% below its estimated fair value, suggesting potential undervaluation. Effective June 19, 2024, the company changed its name to FM Mattsson Mora Group AB (publ).