Three Swedish Dividend Stocks Offering Yields From 3% To 4.4%

As global markets navigate through a period of fluctuating inflation and cautious monetary policies, Sweden's market remains a focal point for investors looking for stable dividend yields. In this context, understanding the attributes of strong dividend stocks becomes crucial, especially those offering yields between 3% and 4.4%, which can provide a blend of income stability and potential growth in these uncertain times.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Zinzino (OM:ZZ B)	4.17%	★★★★★★
Betsson (OM:BETS B)	6.27%	★★★★★☆
Loomis (OM:LOOMIS)	4.21%	★★★★★☆
HEXPOL (OM:HPOL B)	3.17%	★★★★★☆
Axfood (OM:AXFO)	3.16%	★★★★★☆
Bahnhof (OM:BAHN B)	4.21%	★★★★★☆
Duni (OM:DUNI)	4.56%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.24%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.76%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.25%	★★★★★☆

Click here to see the full list of 23 stocks from our Top Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Bilia

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

Overview: Bilia AB (publ) is a full-service supplier for car ownership, operating in Sweden, Norway, Luxembourg, and Belgium with a market capitalization of SEK 13.51 billion.

Operations: Bilia AB generates revenue through various segments, primarily including SEK 19.28 billion from car sales in Sweden, SEK 7.16 billion from car sales in Norway, SEK 3.61 billion from car sales in Western Europe, along with service revenues of SEK 6.16 billion in Sweden, SEK 2.16 billion in Norway, and SEK 654 million in Western Europe.

Dividend Yield: 4.5%

Bilia's recent dividend decrease to SEK 6.60, paid quarterly, aligns with a broader strategy amid financial adjustments. Despite a partnership with Volvo enhancing customer experience, the company faces challenges: Q1 sales dropped to SEK 9.37 billion from SEK 9.87 billion year-over-year, and net income fell to SEK 156 million from SEK 251 million. The high debt level and a cash payout ratio of over 500% signal potential sustainability issues for future dividends despite trading below fair value relative to peers.

• Take a closer look at Bilia's potential here in our dividend report.

• Our expertly prepared valuation report Bilia implies its share price may be lower than expected.

OM:BILI A Dividend History as at Jun 2024

Loomis

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

Overview: Loomis AB operates in providing comprehensive solutions for the handling, storage, recycling, and distribution of cash and other valuables, with a market capitalization of approximately SEK 20.75 billion.

Operations: Loomis AB generates revenue primarily through its operations in Europe and Latin America, which brought in SEK 13.86 billion, and the United States of America, contributing SEK 15.17 billion, along with a smaller segment from Loomis Pay at SEK 61 million.

Dividend Yield: 4.2%

Loomis AB recently announced a dividend of SEK 12.50, aligning with its history of increasing payouts over the past decade, despite a volatile track record. The dividends are well-supported by both earnings and cash flows, with payout ratios at 61.2% and 32.4% respectively. However, recent financials show a dip in net income to SEK 359 million from SEK 403 million year-over-year, raising concerns about sustained growth amidst an active SEK 200 million share repurchase program initiated on May 7, 2024.

• Delve into the full analysis dividend report here for a deeper understanding of Loomis.

• Our valuation report unveils the possibility Loomis' shares may be trading at a discount.

OM:LOOMIS Dividend History as at Jun 2024

New Wave Group

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

Overview: New Wave Group AB operates in designing, acquiring, and developing brands and products within the corporate, sports, gifts, and home furnishings sectors across various global regions, with a market capitalization of SEK 15.46 billion.

Operations: New Wave Group AB generates revenue through three primary segments: Corporate (SEK 4.68 billion), Sports & Leisure (SEK 3.82 billion), and Gifts & Home Furnishings (SEK 0.87 billion).

Dividend Yield: 3%

New Wave Group AB, with a payout ratio of 45.6%, maintains dividends well-covered by earnings and cash flows (42.6%). Despite a 10-year history of increasing dividends, payments have shown volatility, including significant annual drops. Recently, the firm declared a dividend of SEK 3.50 per share at its AGM on May 16, 2024, reflecting confidence in its financial stability despite reporting lower year-over-year earnings and sales in Q1 2024 (SEK 121.3 million net income on SEK 1,995.2 million sales).

• Click to explore a detailed breakdown of our findings in New Wave Group's dividend report.

• The analysis detailed in our New Wave Group valuation report hints at an deflated share price compared to its estimated value.

OM:NEWA B Dividend History as at Jun 2024

Key Takeaways

• Discover the full array of 23 Top Dividend Stocks right here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Contemplating Other Strategies?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include OM:BILI A OM:LOOMIS and OM:NEWA B.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com