SSAB And 2 Other Top Dividend Stocks On The Swedish Exchange

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As global markets react to the recent U.S. Federal Reserve rate cut, European indices have shown mixed performance, reflecting cautious investor sentiment. Amid this backdrop, dividend stocks in Sweden remain a compelling option for those seeking steady income and potential growth. In an environment where market volatility can be influenced by central bank policies, a good dividend stock often combines strong fundamentals with consistent payout history. This article will explore SSAB and two other top dividend stocks on the Swedish exchange that exemplify these qualities.

Top 10 Dividend Stocks In Sweden

Name

Dividend Yield

Dividend Rating

Bredband2 i Skandinavien (OM:BRE2)

4.41%

★★★★★★

Betsson (OM:BETS B)

5.82%

★★★★★☆

Nordea Bank Abp (OM:NDA SE)

8.72%

★★★★★☆

HEXPOL (OM:HPOL B)

3.70%

★★★★★☆

Zinzino (OM:ZZ B)

3.33%

★★★★★☆

Skandinaviska Enskilda Banken (OM:SEB A)

5.42%

★★★★★☆

Duni (OM:DUNI)

4.77%

★★★★★☆

Avanza Bank Holding (OM:AZA)

4.54%

★★★★★☆

SSAB (OM:SSAB A)

9.40%

★★★★☆☆

Bahnhof (OM:BAHN B)

3.71%

★★★★☆☆

Click here to see the full list of 20 stocks from our Top Swedish Dividend Stocks screener.

Let's take a closer look at a couple of our picks from the screened companies.

SSAB

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

Overview: SSAB AB (publ) produces and sells steel products in Sweden, Finland, the rest of Europe, the United States, and internationally with a market cap of SEK52.62 billion.

Operations: SSAB AB (publ) generates revenue from various segments including Tibnor (SEK12.50 billion), SSAB Europe (SEK43.44 billion), SSAB Americas (SEK26.81 billion), Ruukki Construction (SEK5.41 billion), and SSAB Special Steels (SEK30.49 billion).

Dividend Yield: 9.4%

SSAB's dividend payments have increased but remain volatile over the past six years. The company's dividends are well covered by earnings (48.7%) and cash flows (49.5%). Despite a low Price-To-Earnings ratio of 5.1x, recent financials show a decline in sales and net income, with Q2 2024 sales at SEK 28.28 billion and net income at SEK 2.42 billion, compared to higher figures last year.

OM:SSAB A Dividend History as at Sep 2024
OM:SSAB A Dividend History as at Sep 2024

Thule Group

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

Overview: Thule Group AB (publ) is a sports and outdoor company operating in Sweden and internationally, with a market cap of SEK32.78 billion.

Operations: Thule Group AB (publ) generates revenue primarily from its Outdoor & Bags segment, which reported SEK9.40 billion.

Dividend Yield: 3.1%

Thule Group's dividend payments have been volatile over the past decade, though they are covered by earnings (87.8% payout ratio) and free cash flow (56.1%). Recent Q2 2024 results showed a slight increase in sales to SEK 3.10 billion and net income to SEK 559 million, indicating stable financial performance. However, its dividend yield of 3.06% is lower than the top quartile of Swedish dividend payers, raising concerns about its attractiveness for income-focused investors.