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As the global markets experience fluctuations, with European indices like the STOXX Europe 600 Index seeing modest gains amid hopes for economic stimulus, Sweden's stock market remains a focal point for investors looking to capitalize on dividend stocks. In this context, understanding what constitutes a strong dividend stock is crucial; factors such as consistent earnings performance and robust cash flow are key indicators of a company's ability to sustain and grow its dividend payouts.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Bredband2 i Skandinavien (OM:BRE2) | 4.68% | ★★★★★★ |
| HEXPOL (OM:HPOL B) | 3.95% | ★★★★★☆ |
| Zinzino (OM:ZZ B) | 3.33% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.03% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.60% | ★★★★★☆ |
| Duni (OM:DUNI) | 4.87% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 5.02% | ★★★★★☆ |
| Loomis (OM:LOOMIS) | 3.97% | ★★★★☆☆ |
| Afry (OM:AFRY) | 3.12% | ★★★★☆☆ |
| Bahnhof (OM:BAHN B) | 3.75% | ★★★★☆☆ |
Click here to see the full list of 23 stocks from our Top Swedish Dividend Stocks screener.
Let's take a closer look at a couple of our picks from the screened companies.
Knowit
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Knowit AB (publ) is a consultancy company focused on developing digital solutions, with a market capitalization of approximately SEK4.18 billion.
Operations: Knowit AB (publ) generates revenue from several segments: Insight (SEK898.95 million), Solutions (SEK3.90 billion), Experience (SEK1.44 billion), and Connectivity (SEK1.02 billion).
Dividend Yield: 3.4%
Knowit's dividend sustainability is supported by a payout ratio of 77.3%, indicating earnings coverage, and a cash payout ratio of 41.6%, showing strong cash flow backing. However, its dividend history has been volatile over the past decade despite some growth in payments. Recent financials reveal declining net income and revenue, with second-quarter net income at SEK 3 million compared to SEK 19.5 million the previous year, which may affect future payouts.
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Take a closer look at Knowit's potential here in our dividend report.
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Upon reviewing our latest valuation report, Knowit's share price might be too pessimistic.
Loomis
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Loomis AB (publ) offers solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of SEK21.92 billion.
Operations: Loomis AB (publ) generates revenue primarily from its operations in Europe and Latin America, which contribute SEK14.32 billion, and the United States of America, which adds SEK15.45 billion, along with its Loomis Pay segment contributing SEK77 million.