As global markets navigate through a mix of economic signals, Sweden's market remains a point of interest for investors looking for stable dividend yields. Amidst this backdrop, understanding the characteristics of top-performing dividend stocks becomes crucial, especially in an environment where careful selection aligns with long-term investment stability and income generation.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 22 stocks from our Top Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Avanza Bank Holding

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

Overview: Avanza Bank Holding AB, along with its subsidiaries, provides savings, pension, and mortgage products in Sweden and has a market capitalization of approximately SEK 43.40 billion.

Operations: Avanza Bank Holding AB generates its revenue primarily from commercial operations, totaling SEK 3.84 billion.

Dividend Yield: 4.3%

Avanza Bank Holding's dividend yield stands at 4.28%, ranking in the top 25% of Swedish dividend payers, with a history of increasing dividends over the past decade. Despite this, its dividend payments have shown volatility and inconsistency. The company's recent performance includes a net income rise to SEK 555 million in Q1 2024, up from SEK 501 million year-over-year, supported by significant customer growth and robust net inflows totaling SEK 34.9 billion in 2024.

• Take a closer look at Avanza Bank Holding's potential here in our dividend report.

• In light of our recent valuation report, it seems possible that Avanza Bank Holding is trading beyond its estimated value.

Nordic Paper Holding

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

Overview: Nordic Paper Holding AB operates in the production and sale of natural greaseproof and kraft paper across Sweden, Italy, Germany, other parts of Europe, the United States, and internationally with a market capitalization of approximately SEK 3.37 billion.

Operations: Nordic Paper Holding AB generates its revenue primarily from two segments: Kraft Paper, which brought in SEK 2.23 billion, and Natural Greaseproof paper, contributing SEK 2.19 billion.

Dividend Yield: 7.9%

Nordic Paper Holding's recent dividend reduction to SEK 4 per share reflects a cautious approach amid financial results showing a dip in Q1 2024 sales to SEK 1.21 billion from SEK 1.31 billion year-over-year, and net income decreasing to SEK 149 million from SEK 173 million. Despite this, the dividend yield remains competitive at 7.92%, supported by a cash payout ratio of 78%. However, the company's high debt levels and unstable dividend history since it has been paying dividends for only three years suggest potential concerns for long-term sustainability.