As global markets experience modest gains and shifts in investor sentiment, Sweden's market remains a point of interest for those looking at dividend stocks. In the current economic climate, understanding the stability and yield potential of stocks is crucial for investors seeking to enhance their portfolios with international exposure.
Overview: Afry AB is a company that offers engineering, design, and advisory services across various sectors including infrastructure, industry, energy, and digitalization in North and South America, Finland, and Central Europe, with a market capitalization of SEK 20.76 billion.
Operations: Afry AB generates revenue from several segments, with Infrastructure contributing SEK 10.26 billion, Process Industries SEK 5.53 billion, Industrial & Digital Solutions SEK 6.77 billion, Energy SEK 3.59 billion, and Management Consulting SEK 1.63 billion.
Dividend Yield: 3%
Afry, a Swedish engineering firm, declared a dividend of SEK 5.50 per share at its recent AGM, reflecting its commitment to shareholder returns despite a slight dip in Q1 2024 earnings with net income falling to SEK 355 million from SEK 436 million year-over-year. The firm's dividend yield stands at 3%, below the top quartile of Swedish dividend payers. While dividends are supported by both earnings and cash flows with payout ratios of 61.1% and 37% respectively, Afry's decade-long track record shows volatility in dividend payments, suggesting potential instability for investors seeking consistent income streams. Additionally, Afry is trading significantly below estimated fair value, offering a potentially attractive entry point for value investors.
Overview: FM Mattsson AB (publ) specializes in developing, manufacturing, and selling water taps and related products for bathrooms and kitchens across Sweden, Norway, Denmark, Finland, Benelux, the UK, Germany, and Italy with a market capitalization of SEK 2.28 billion.
Operations: FM Mattsson AB generates revenue primarily from the Nordic countries, where it earned SEK 1.12 billion, and from international markets with revenues of SEK 783.23 million.
Dividend Yield: 4.6%
FM Mattsson, recently renamed, reported a Q1 2024 sales drop to SEK 493.4 million and a net income decrease to SEK 28.2 million from the previous year. Despite this downturn, the company maintains a dividend yield of 4.63%, ranking in the top quartile of Swedish dividend stocks. Dividends are well-supported by earnings and cash flows with payout ratios at 86.3% and 49.5% respectively, though its history of dividend payments spans only six years, suggesting potential concerns about long-term sustainability and stability in its shareholder returns.
Overview: Zinzino AB (publ), headquartered in Sweden, operates internationally as a direct sales company specializing in dietary supplements and skincare products, with a market capitalization of approximately SEK 2.29 billion.
Operations: Zinzino AB generates its revenue primarily through two segments: Faun, which contributed SEK 161.20 million, and Zinzino (including VMA Life), which accounted for SEK 1737.25 million.
Dividend Yield: 4.5%
Zinzino AB offers a compelling 4.5% dividend yield, well above the Swedish market average. With a decade of stable dividends, recent earnings growth of 107.6%, and forecasts suggesting further annual increases of around 9.75%, the company's dividends appear sustainable, supported by both earnings and cash flows with payout ratios under 60%. However, significant insider selling in the past three months may raise caution among investors. Recent expansions into Serbia and strategic acquisitions in the US and Asia indicate proactive management driving international growth.
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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.
