In the search for reliable dividend stocks within Switzerland, where the average yield hovers around 3.0%, it's crucial to scrutinize companies offering higher dividends. A high payout ratio can either signal a robust income stream or raise red flags about the sustainability of these dividends. This article examines such scenarios, highlighting one company, Accelleron Industries, whose elevated payout ratio could indicate financial challenges ahead.
Top 10 Dividend Stocks In Switzerland
| Name | Dividend Yield | Dividend Rating |
| Vontobel Holding (SWX:VONN) | 5.57% | ★★★★★★ |
| Cembra Money Bank (SWX:CMBN) | 5.19% | ★★★★★★ |
| Banque Cantonale Vaudoise (SWX:BCVN) | 4.54% | ★★★★★★ |
| St. Galler Kantonalbank (SWX:SGKN) | 4.43% | ★★★★★★ |
| Novartis (SWX:NOVN) | 3.36% | ★★★★★☆ |
| Roche Holding (SWX:ROG) | 3.86% | ★★★★★☆ |
| Julius Bär Gruppe (SWX:BAER) | 5.08% | ★★★★★☆ |
| Holcim (SWX:HOLN) | 3.57% | ★★★★★☆ |
| Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.74% | ★★★★★☆ |
| Helvetia Holding (SWX:HELN) | 5.18% | ★★★★★☆ |
Click here to see the full list of 26 stocks from our Top Dividend Stocks screener.
Let's dive into one of the prime choices out of the screener and one to possibly skip over.
Top Pick
EFG International
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: EFG International AG operates in private banking, wealth management, and asset management, with a market capitalization of approximately CHF 4.06 billion.
Operations: EFG International's revenue is generated from several geographic and functional segments, including CHF 450.20 million from Switzerland & Italy, CHF 249.70 million from Continental Europe & Middle East, CHF 177.40 million from the United Kingdom, CHF 165.30 million from Asia Pacific, CHF 133.20 million from the Americas, CHF 122.40 million from Investment and Wealth Solutions, and CHF 83 million from Global Markets & Treasury.
Dividend Yield: 4.1%
EFG International maintains a sustainable dividend with a current payout ratio of 58.5%, suggesting dividends are well-covered by earnings, contrasting sharply with some peers struggling with high payout ratios. However, its dividend yield at 4.06% is slightly below the top Swiss payers' average of 4.22%. Despite this, EFG has shown earnings growth of 56.6% over the past year and recently extended its buyback plan, indicating confidence in ongoing financial health and shareholder value support.
One To Reconsider
Accelleron Industries
Simply Wall St Dividend Rating: ★★☆☆☆☆