As global markets exhibit mixed signals with some regions facing economic uncertainties, Sweden's market remains a focal point for investors looking for stability and consistent returns. Dividend stocks, such as Avanza Bank Holding, often attract attention in such climates due to their potential for steady income and resilience against market volatility.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 21 stocks from our Top Dividend Stocks screener.

We'll examine a selection from our screener results.

Avanza Bank Holding

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

Overview: Avanza Bank Holding AB, along with its subsidiaries, provides various savings, pension, and mortgage products in Sweden and has a market capitalization of approximately SEK 43.66 billion.

Operations: Avanza Bank Holding AB generates its revenue primarily through commercial operations, which amounted to SEK 3.84 billion.

Dividend Yield: 4.1%

Avanza Bank Holding's recent earnings show a modest increase, with net income rising to SEK 555 million in Q1 2024 from SEK 501 million the previous year. Despite an unstable dividend track record over the last decade, the company increased its dividend to SEK 11.50 recently. Avanza's dividends appear sustainable with a low cash payout ratio of 18.5% and an earnings coverage at 88.6%. However, its dividend yield slightly trails behind Sweden’s top dividend payers at 4.14%.

• Unlock comprehensive insights into our analysis of Avanza Bank Holding stock in this dividend report.

• Our valuation report here indicates Avanza Bank Holding may be overvalued.

Loomis

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

Overview: Loomis AB specializes in services for the distribution, handling, storage, recycling of cash and other valuables with a market capitalization of approximately SEK 20.90 billion.

Operations: Loomis AB generates its revenue primarily through operations in Europe and Latin America, totaling SEK 13.86 billion, and in the United States of America, which contributes SEK 15.17 billion.

Dividend Yield: 4.2%

Loomis has demonstrated a decade of fluctuating dividend reliability, challenging its status among Sweden's top dividend stocks. Despite this, recent increases in dividends to SEK 12.50 per share signal a potential positive shift. The company maintains a healthy coverage with earnings and cash flows supporting these payouts, indicated by payout ratios of 61.2% and 32.6% respectively. Additionally, Loomis initiated a SEK 200 million share repurchase program on May 7, 2024, reflecting confidence in its financial structure and future prospects.