In This Article:
As the European Central Bank's recent rate cuts fuel optimism for further monetary easing, the Swedish market is experiencing a period of cautious optimism. With major stock indexes showing positive momentum, investors are increasingly focusing on dividend stocks as a stable income source in this evolving economic landscape. A good dividend stock typically offers consistent payouts and demonstrates resilience amid fluctuating market conditions, making them appealing to those seeking reliable returns amidst global economic shifts.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Bredband2 i Skandinavien (OM:BRE2) | 4.71% | ★★★★★★ |
| Zinzino (OM:ZZ B) | 3.42% | ★★★★★☆ |
| HEXPOL (OM:HPOL B) | 3.84% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.12% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.36% | ★★★★★☆ |
| Duni (OM:DUNI) | 4.96% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 5.09% | ★★★★★☆ |
| Loomis (OM:LOOMIS) | 3.95% | ★★★★☆☆ |
| Afry (OM:AFRY) | 3.10% | ★★★★☆☆ |
| Bahnhof (OM:BAHN B) | 3.79% | ★★★★☆☆ |
Click here to see the full list of 23 stocks from our Top Swedish Dividend Stocks screener.
Here's a peek at a few of the choices from the screener.
Axfood
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Axfood AB (publ) operates in the food retail and wholesale sectors mainly in Sweden, with a market cap of SEK58.72 billion.
Operations: Axfood AB's revenue segments include Dagab at SEK75.09 billion, Willys at SEK44.82 billion, Snabbgross at SEK5.38 billion, Joint-Group at SEK1.45 billion, and Home Purchase at SEK7.67 billion.
Dividend Yield: 3.1%
Axfood offers a stable dividend history with consistent growth over the past decade, supported by a sustainable payout ratio of 76.8% from earnings and 39.3% from cash flows. Despite its reliable dividend track record, the yield of 3.13% is below Sweden's top quartile for dividend payers. Recent approval for the acquisition of City Gross may enhance Axfood's market position and growth prospects, potentially impacting future dividends positively amidst executive leadership changes.
Bilia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bilia AB (publ) is a full-service supplier for car ownership in Sweden, Norway, Luxembourg, and Belgium with a market cap of SEK11.36 billion.
Operations: Bilia AB (publ) generates revenue from its operations as a comprehensive car ownership service provider across Sweden, Norway, Luxembourg, and Belgium.
Dividend Yield: 5.4%
Bilia's dividend yield of 5.37% ranks in the top quartile of Swedish dividend payers, yet its dividends have been volatile over the past decade. The payout ratio stands at 84.7%, indicating coverage by earnings but not by free cash flows, raising sustainability concerns. Recent Q3 results show a decline in net income to SEK 105 million from SEK 169 million last year, alongside shrinking profit margins and high debt levels, potentially affecting future dividend reliability.