Yahoo Finance Exploring Top Dividend Stocks In Switzerland June 2024
In a recent trading session, the Switzerland market displayed resilience, ending slightly higher despite a largely volatile day. The SMI index's modest uptick reflects cautious optimism among investors in the face of mixed market signals. In this context, understanding what defines a strong dividend stock becomes crucial, especially when navigating through such subtle shifts in market dynamics.
Top 10 Dividend Stocks In Switzerland
Name | Dividend Yield | Dividend Rating |
Cembra Money Bank (SWX:CMBN) | 5.39% | ★★★★★★ |
Vontobel Holding (SWX:VONN) | 5.62% | ★★★★★★ |
Banque Cantonale Vaudoise (SWX:BCVN) | 4.47% | ★★★★★★ |
St. Galler Kantonalbank (SWX:SGKN) | 4.28% | ★★★★★★ |
Novartis (SWX:NOVN) | 3.39% | ★★★★★☆ |
Roche Holding (SWX:ROG) | 3.96% | ★★★★★☆ |
EFG International (SWX:EFGN) | 4.20% | ★★★★★☆ |
Julius Bär Gruppe (SWX:BAER) | 5.07% | ★★★★★☆ |
Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.72% | ★★★★★☆ |
Helvetia Holding (SWX:HELN) | 5.20% | ★★★★★☆ |
Click here to see the full list of 28 stocks from our Top Dividend Stocks screener.
Let's explore several standout options from the results in the screener.
Burkhalter Holding
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Burkhalter Holding AG specializes in providing electrical engineering services to the construction sector across Switzerland, with a market capitalization of approximately CHF 976.56 million.
Operations: Burkhalter Holding AG generates CHF 1.16 billion from its core electrical engineering services for the construction industry in Switzerland.
Dividend Yield: 4.8%
Burkhalter Holding AG offers a dividend yield of 4.84%, ranking in the top 25% of Swiss dividend payers. Despite recent growth, with earnings up 34.7% last year and forecasted to rise by 6% annually, its dividends have shown volatility over the past decade. The firm's dividends are mostly covered by earnings and cash flows, with payout ratios at 89.9% and 87.1%, respectively. However, this historical instability in payouts may raise concerns about future reliability despite current coverage levels.
St. Galler Kantonalbank
Simply Wall St Dividend Rating: ★★★★★★
Overview: St. Galler Kantonalbank AG operates as a cantonal bank in Switzerland, offering banking products and services to local individuals and small to medium-sized businesses in the Cantons of St. Gallen, with a market capitalization of CHF 2.65 billion.
Operations: St. Galler Kantonalbank AG generates its revenue primarily through banking services tailored to individuals and small to medium-sized enterprises in the Cantons of St. Gallen.
Dividend Yield: 4.3%
St. Galler Kantonalbank maintains a solid dividend profile with a yield of 4.28%, placing it among the top 25% of Swiss dividend payers. The dividends, consistently paid over the last decade, are supported by a reasonable payout ratio of 54.9%. Looking ahead, dividends are expected to remain well-covered by earnings with a projected payout ratio of 49.2% in three years. Additionally, the stock trades at a 23.3% discount to its estimated fair value, enhancing its attractiveness despite moderate earnings growth of 5.2% annually over the past five years and an adequate allowance for bad loans at 55%.
Swiss Re
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Swiss Re AG operates globally, offering wholesale reinsurance, insurance, and other risk transfer services, with a market capitalization of approximately CHF 33.00 billion.
Operations: Swiss Re AG generates revenue through three primary segments: Corporate Solutions at $6.06 billion, Life & Health Reinsurance at $18.09 billion, and Property & Casualty Reinsurance at $23.74 billion.
Dividend Yield: 5.4%
Swiss Re offers a dividend yield of 5.37%, ranking in the top quartile within the Swiss market. However, its dividend history has been inconsistent, with payments showing volatility and a decline over the past decade. The dividends are financially supported by a payout ratio of 53.9% and a cash payout ratio of 48.3%. Recent strategic initiatives include expanding their Connected Underwriting Life Workbench to various regions, potentially enhancing operational efficiency and underwriter productivity.
Unlock comprehensive insights into our analysis of Swiss Re stock in this dividend report.
Our valuation report unveils the possibility Swiss Re's shares may be trading at a discount.
Key Takeaways
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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.
Companies discussed in this article include SWX:BRKN SWX:SGKN and SWX:SREN.
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