Yahoo Finance Steer Clear Of Investis Holding And Explore This One Attractive Dividend Stock Instead
Dividend-paying stocks are often sought after for their potential to provide investors with a steady income stream. However, caution is warranted when a company like Investis Holding exhibits an excessively high payout ratio, which may indicate that its dividends are not sustainable over the long term. In this article, we will explore why such financial metrics are crucial in assessing the viability of dividend investments and highlight another Swiss stock that presents a more attractive opportunity.
Top 10 Dividend Stocks In Switzerland
Name | Dividend Yield | Dividend Rating |
Vontobel Holding (SWX:VONN) | 5.56% | ★★★★★★ |
Cembra Money Bank (SWX:CMBN) | 5.13% | ★★★★★★ |
Banque Cantonale Vaudoise (SWX:BCVN) | 4.49% | ★★★★★★ |
St. Galler Kantonalbank (SWX:SGKN) | 4.36% | ★★★★★★ |
Novartis (SWX:NOVN) | 3.36% | ★★★★★☆ |
Roche Holding (SWX:ROG) | 3.90% | ★★★★★☆ |
CPH Group (SWX:CPHN) | 5.88% | ★★★★★☆ |
Julius Bär Gruppe (SWX:BAER) | 4.97% | ★★★★★☆ |
Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.72% | ★★★★★☆ |
Helvetia Holding (SWX:HELN) | 5.15% | ★★★★★☆ |
Click here to see the full list of 26 stocks from our Top Dividend Stocks screener.
Below we spotlight one of our favorites from our exclusive screener and one you might the flick.
Top Pick
Phoenix Mecano
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Phoenix Mecano AG operates globally, manufacturing and selling components for industrial customers with a market capitalization of CHF 466.06 million.
Operations: The company's revenue is primarily generated from three segments: Enclosure Systems (€231.16 million), Industrial Components (€223.58 million), and Dewertokin Technology Group (€335.80 million).
Dividend Yield: 6%
Phoenix Mecano AG, with a solid dividend yield of 6.09%, stands out in the Swiss market. Recent approvals at their AGM include a special dividend and an ordinary increase, reflecting a robust payout strategy. Despite some volatility in its dividend history, the current earnings cover (68.4%) and cash flow cover (58.1%) ensure sustainability, contrasting sharply with firms showing strained payout ratios. Trading at 25.4% below estimated fair value also suggests an attractive entry point for value-oriented investors.
One To Reconsider
Investis Holding
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: Investis Holding SA is a residential real estate company based in Switzerland, with a market capitalization of approximately CHF 1.29 billion.
Operations: The company generates revenue through two main segments: Properties, which brought in CHF 53.08 million, and Real Estate Services, contributing CHF 181.70 million.
Dividend Yield: 2.5%
Investis Holding SA, despite a recent dividend affirmation of CHF 2.50 per share, presents concerns for dividend-focused investors due to its unsustainable payout practices. The company's dividend yield of 2.45% falls below the Swiss market's top quartile average of 4.22%. Notably, dividends are not well-covered by earnings or profitable operations, indicating potential risk in sustained payouts. Recent activities include a presentation at the ROTH MKM conference and discussions on M&A with PHM Group Oy, highlighting strategic moves yet overshadowed by fundamental financial weaknesses.
Click here to discover the nuances of Investis Holding with our detailed analytical dividend report.
Where To Now?
Delve into our full catalog of 26 Top Dividend Stocks here.
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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:PMN and SWX:IREN.
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