As global markets grapple with rising oil prices and geopolitical tensions, the European market has seen a cautious sentiment, with major indices like the STOXX Europe 600 Index experiencing declines. In this environment, Swedish dividend stocks present an intriguing option for investors seeking stability and income potential amidst market fluctuations. A good dividend stock typically offers a reliable payout history and financial resilience, qualities that can be particularly appealing during times of economic uncertainty.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 23 stocks from our Top Swedish Dividend Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Bahnhof

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

Overview: Bahnhof AB (publ) operates in the Internet and telecommunications sector across Sweden and Europe, with a market cap of SEK5.66 billion.

Operations: Bahnhof AB (publ) generates revenue through its operations in the Internet and telecommunications sectors across Sweden and Europe.

Dividend Yield: 3.8%

Bahnhof's dividend yield of 3.8% is lower than the top Swedish payers and isn't well covered by earnings, with a high payout ratio of 94.4%. However, it is supported by cash flows at an 85.3% cash payout ratio. Dividends have been stable and growing over the past decade, though not fully sustainable from earnings alone. Recent inclusion in the S&P Global BMI Index may enhance its profile among investors seeking reliable dividend stocks in Sweden.

• Take a closer look at Bahnhof's potential here in our dividend report.

• Upon reviewing our latest valuation report, Bahnhof's share price might be too optimistic.

Duni

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

Overview: Duni AB (publ) is a company that develops, manufactures, and sells concepts and products for serving, take-away, and meal packaging in Sweden and internationally, with a market cap of SEK4.96 billion.

Operations: Duni AB's revenue is primarily derived from its Dining Solutions segment, which generated SEK4.52 billion, and its Food Packaging Solutions segment, contributing SEK3.05 billion.

Dividend Yield: 4.7%

Duni's dividend yield of 4.73% ranks it among the top 25% of Swedish payers, with dividends well-covered by earnings and cash flows at payout ratios of 63.9% and 42.9%, respectively. However, its dividend history is marked by volatility, raising concerns about reliability despite recent growth in earnings at 23% annually over five years. The company's strategic expansion in Germany could improve operational efficiency but may also introduce short-term financial adjustments impacting future dividends.