Amidst a backdrop of fluctuating European markets, with political uncertainties and varying economic indicators influencing investor sentiment, Sweden's market presents an intriguing area for those interested in dividend stocks. In this context, selecting stocks that not only offer attractive yields but also demonstrate stability and strong fundamentals becomes particularly crucial.
Overview: Bilia AB (publ) is a full-service supplier for car ownership with operations in Sweden, Norway, Luxembourg, and Belgium, boasting a market capitalization of SEK 12.82 billion.
Operations: Bilia AB generates revenue through various segments, including SEK 19.28 billion from car sales in Sweden, SEK 7.16 billion in Norway, and SEK 3.61 billion in Western Europe; additionally, service revenues contribute SEK 6.16 billion in Sweden, SEk 2.16 billion in Norway, and SEK 654 million in Western Europe.
Dividend Yield: 4.7%
Bilia's dividend yield stands at 4.73%, ranking in the top 25% of Swedish dividend payers, despite a recent decrease to SEK 6.60 per share, payable in four installments through 2025. The company's financial position is challenged by high debt levels and a cash payout ratio of 518.9%, indicating that dividends are not well covered by cash flows. Additionally, Bilia has experienced volatility in its dividend payments over the past decade, with profit margins declining from last year to a current 2.2%. Recent strategic moves include a new partnership with Volvo Car Sweden and expansion into electric vehicle sales through XPENG brand facilities, aiming to enhance customer experience and market presence.
Overview: Loomis AB specializes in the distribution, handling, storage, recycling of cash and other valuables, with a market capitalization of approximately SEK 19.76 billion.
Operations: Loomis AB generates its revenue primarily from two segments: Europe and Latin America with SEK 13.86 billion, and the United States of America with SEK 15.17 billion.
Dividend Yield: 4.4%
Loomis AB's recent dividend of SEK 12.50 per share aligns with its pattern of maintaining payouts, supported by a payout ratio of 61.2%. Despite a slight dip in Q1 2024 net income to SEK 359 million from SEK 403 million year-over-year, the company's dividends appear sustainable with earnings coverage and a cash payout ratio at 32.4%. Additionally, Loomis has initiated a share repurchase program valued at up to SEK 200 million, potentially bolstering shareholder value amidst stable capital restructuring efforts and ongoing legal challenges in Denmark.
Overview: Rejlers AB (publ) is a technical and engineering consultancy firm operating in Sweden, Finland, Norway, and the United Arab Emirates with a market capitalization of approximately SEK 3.28 billion.
Operations: Rejlers AB generates its revenue primarily from Sweden with SEK 2.58 billion, followed by Finland at SEK 1.34 billion, and Norway (including Embriq) contributing SEK 294.60 million.
Dividend Yield: 3%
Rejlers' dividend history reveals a pattern of fluctuations, with significant annual drops over the past decade, despite recent increases. The company's dividend yield stands at 3.04%, lower than the top quartile of Swedish dividend stocks at 4.25%. However, both earnings and cash flow adequately cover these dividends, with payout ratios of 49.5% and 34.9% respectively. Rejlers' collaboration with the Käppala Association could bolster future stability through enhanced operational capacities and environmental contributions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
