As Sweden's Riksbank recently cut interest rates, the local stock market has shown resilience amid broader European economic uncertainties. With this backdrop, dividend stocks in Sweden present an attractive option for investors seeking steady income streams. A good dividend stock typically offers a solid yield and stable financials, making it a reliable choice in today's fluctuating market conditions.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 20 stocks from our Top Swedish Dividend Stocks screener.

Let's explore several standout options from the results in the screener.

Avanza Bank Holding

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

Overview: Avanza Bank Holding AB (publ) and its subsidiaries provide a variety of savings, pension, and mortgage products in Sweden, with a market cap of SEK39.55 billion.

Operations: Avanza Bank Holding AB (publ) generates revenue primarily from its commercial operations, amounting to SEK3.96 billion.

Dividend Yield: 4.6%

Avanza Bank Holding's dividends are covered by earnings (87.3% payout ratio) and cash flows (55.8% cash payout ratio), though the dividend history has been volatile over the past decade. Earnings have grown 22.5% annually over the last five years, with a forecasted growth of 5.48% per year. Despite trading at 4.4% below fair value, recent executive changes and strong customer growth underline operational stability and potential for sustained dividend payments in the future.

• Click here and access our complete dividend analysis report to understand the dynamics of Avanza Bank Holding.

• According our valuation report, there's an indication that Avanza Bank Holding's share price might be on the expensive side.

Knowit

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

Overview: Knowit AB (publ) is a consultancy company focused on developing digital solutions, with a market cap of SEK4.31 billion.

Operations: Knowit AB (publ) generates revenue through its Insight segment (SEK898.95 million), Solutions segment (SEK3.90 billion), Experience segment (SEK1.44 billion), and Connectivity segment (SEK1.02 billion).

Dividend Yield: 3.3%

Knowit AB's dividends are covered by earnings (77.3% payout ratio) and cash flows (41.6% cash payout ratio). However, the dividend history has been volatile over the past decade despite recent increases. The current dividend yield of 3.3% is lower than the top 25% of Swedish dividend payers. Recent earnings reports show a decline in revenue and net income, with net income for Q2 2024 at SEK 3 million compared to SEK 19.5 million a year ago.

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

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

SSAB

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

Overview: SSAB AB (publ) is a steel producer and seller operating in Sweden, Finland, the rest of Europe, the United States, and internationally with a market cap of SEK52.17 billion.

Operations: SSAB AB (publ) generates revenue through its segments: Tibnor (SEK12.50 billion), SSAB Europe (SEK43.44 billion), SSAB Americas (SEK26.81 billion), Ruukki Construction (SEK5.41 billion), and SSAB Special Steels (SEK30.49 billion).

Dividend Yield: 9.4%

SSAB's dividend payments are well covered by both earnings (48.7% payout ratio) and cash flows (49.5% cash payout ratio). Despite a high dividend yield of 9.4%, the company has only paid dividends for six years, with a volatile track record. Recent earnings reports show a decline, with Q2 2024 net income at SEK 2.42 billion compared to SEK 3.92 billion a year ago, indicating potential challenges ahead for sustaining dividends.

• Navigate through the intricacies of SSAB with our comprehensive dividend report here.

• The valuation report we've compiled suggests that SSAB's current price could be quite moderate.

Key Takeaways

• Explore the 20 names from our Top Swedish Dividend Stocks screener here.

• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.

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Curious About Other Options?

• 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:AZA OM:KNOW and OM:SSAB A.

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