Dividend Yield: 4%

Bahnhof AB's recent earnings show a revenue increase to SEK 491.38 million and net income up to SEK 56.17 million, reflecting a growth of 17.7% over the past year. Despite this, its dividend yield of 3.96% remains below the Swedish market's top quartile at 4.2%. The dividend coverage is problematic with a high payout ratio of 97.5%, indicating that dividends are not well-covered by earnings, posing risks to sustainability despite a decade of reliable payments.

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

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

Husqvarna

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

Overview: Husqvarna AB (publ) specializes in manufacturing and distributing outdoor power products, watering products, and lawn care equipment, with a market capitalization of approximately SEK 51.27 billion.

Operations: Husqvarna AB generates revenue primarily through three segments: Gardena at SEK 13.06 billion, Husqvarna Construction at SEK 8.23 billion, and Husqvarna Forest & Garden at SEK 29.38 billion.

Dividend Yield: 3.3%

Husqvarna AB's financial performance has seen a decline, with Q1 2024 sales dropping to SEK 14.72 billion from SEK 17.17 billion the previous year, and net income falling to SEK 1.32 billion from SEK 1.65 billion. Despite this downturn, the company maintains a dividend of SEK 3.00 per share for the year, distributed in two installments. However, its high payout ratio of 92.8% suggests dividends are not well covered by earnings, raising concerns about sustainability despite a stable dividend history over the past decade and reasonable cash flow coverage with a cash payout ratio of 58.6%.

• Get an in-depth perspective on Husqvarna's performance by reading our dividend report here.

• In light of our recent valuation report, it seems possible that Husqvarna is trading behind its estimated value.

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 OM:AXFO OM:BAHN BOM:HUSQ B and

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