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Exploring Sweden's Top Dividend Stocks For May 2024

As global markets display a mixed performance with varying trajectories across major indices, Sweden's market dynamics offer a unique landscape for dividend-seeking investors. Amidst fluctuating economic signals and interest rate speculations, understanding the fundamentals of robust dividend stocks becomes crucial for those looking to enhance their investment portfolios in May 2024.

Top 10 Dividend Stocks In Sweden

Name

Dividend Yield

Dividend Rating

Betsson (OM:BETS B)

6.16%

★★★★★☆

Zinzino (OM:ZZ B)

4.17%

★★★★★☆

Loomis (OM:LOOMIS)

4.26%

★★★★★☆

HEXPOL (OM:HPOL B)

3.16%

★★★★★☆

Axfood (OM:AXFO)

3.03%

★★★★★☆

Duni (OM:DUNI)

4.58%

★★★★★☆

Nordea Bank Abp (OM:NDA SE)

8.19%

★★★★★☆

Skandinaviska Enskilda Banken (OM:SEB A)

5.75%

★★★★★☆

Avanza Bank Holding (OM:AZA)

4.15%

★★★★★☆

AB Traction (OM:TRAC B)

4.02%

★★★★☆☆

Click here to see the full list of 24 stocks from our Top Dividend Stocks screener.

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We're going to check out a few of the best picks from our screener tool.

Bravida Holding

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

Overview: Bravida Holding AB operates in Sweden, Norway, Denmark, and Finland, offering technical services and installations for buildings and industrial facilities with a market capitalization of SEK 16.77 billion.

Operations: Bravida Holding AB generates its revenue from providing technical services and installations across four key regions: Sweden, Norway, Denmark, and Finland.

Dividend Yield: 4.3%

Bravida Holding's dividend yield at 4.34% ranks in the top 25% of Swedish dividend payers, supported by a reasonable payout ratio of 61.7% and a cash payout ratio of 43.5%, indicating that dividends are well-covered by both earnings and cash flow. Despite a relatively short history of dividend payments—only eight years—the company has shown commitment to growing dividends, as evidenced by the recent increase announced at their AGM on May 7, 2024, where shareholders approved a dividend payment totaling SEK 714.29 million for FY2023. However, Bravida's recent challenges include overbilling issues leading to managerial changes and could impact investor confidence.

OM:BRAV Dividend History as at May 2024
OM:BRAV Dividend History as at May 2024

G5 Entertainment

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

Overview: G5 Entertainment AB, based in Sweden, specializes in developing and publishing free-to-play games for smartphones, tablets, and personal computers with a market capitalization of SEK 1.10 billion.

Operations: G5 Entertainment AB generates its revenue primarily through the development and sales of casual games, which totaled SEK 1.27 billion.

Dividend Yield: 5.8%

G5 Entertainment's recent financial performance shows a decline, with Q1 2024 sales dropping to SEK 297.41 million from SEK 345.37 million year-over-year, and net income falling to SEK 37.48 million from SEK 47.76 million. Despite this, the company maintains a sustainable dividend policy with a payout ratio of 54.4% and cash payout ratio of 36.1%, indicating dividends are well-covered by earnings and cash flow respectively. However, G5 Entertainment has been paying dividends for less than ten years, suggesting potential concerns about the long-term stability of its dividend payments.

OM:G5EN Dividend History as at May 2024
OM:G5EN Dividend History as at May 2024

AB Traction

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

Overview: AB Traction is a private equity firm in Sweden, focusing on various investment strategies including distressed assets and buyouts, with a market capitalization of SEK 3.85 billion.

Operations: AB Traction's revenue is primarily generated from its financial investments segment, amounting to SEK 237.90 million.

Dividend Yield: 4%

AB Traction's dividend sustainability is moderately supported with an earnings payout ratio of 82.6% and a similar cash payout ratio, indicating dividends are mostly covered by both earnings and cash flows. However, the firm's dividend history over the past decade has been inconsistent, marked by volatility in payments. Recently, AB Traction reported a decrease in Q1 2024 net income to SEK 128.2 million from SEK 211 million year-over-year, potentially impacting future dividend reliability despite current coverage levels.

OM:TRAC B Dividend History as at May 2024
OM:TRAC B Dividend History as at May 2024

Where To Now?

Ready To Venture Into Other Investment Styles?

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:BRAV OM:G5EN and OM:TRAC B.

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