As hopes for interest rate cuts grow in Europe and major stock indexes post strong gains, the Swedish market has shown resilience amid global economic uncertainties. With this backdrop, identifying robust dividend stocks becomes crucial for investors seeking steady income and potential growth. In this article, we will explore three top Swedish dividend stocks that stand out in August 2024.

Top 10 Dividend Stocks In Sweden

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

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

Bredband2 i Skandinavien

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

Overview: Bredband2 i Skandinavien AB (publ) offers data communication and security solutions to individuals and companies in Sweden, with a market cap of SEK1.98 billion.

Operations: Bredband2 i Skandinavien AB (publ) generates revenue primarily from its National Broadband Service, amounting to SEK1.65 billion.

Dividend Yield: 4.3%

Bredband2 i Skandinavien reported strong earnings growth, with second-quarter sales reaching SEK 429.55 million and net income at SEK 24.35 million. The company’s dividend yield of 4.35% is among the top in Sweden, and its dividends have been stable and growing over the past decade. With a payout ratio of 87.6% covered by earnings and a cash payout ratio of 39.1%, BRE2's dividend payments are both reliable and sustainable, making it an attractive option for dividend investors.

• Click to explore a detailed breakdown of our findings in Bredband2 i Skandinavien's dividend report.

• Our valuation report here indicates Bredband2 i Skandinavien may be overvalued.

Eolus Vind

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

Overview: Eolus Vind AB (publ) develops, constructs, and operates renewable energy assets across several countries including Sweden and the United States, with a market cap of SEK1.58 billion.

Operations: Eolus Vind AB (publ) generates revenue primarily through the development, construction, and operation of renewable energy projects in various countries including Sweden, Norway, Finland, the United States, Poland, Spain, and the Baltic states.

Dividend Yield: 3.5%

Eolus Vind's dividend payments are well-covered by earnings (10.1% payout ratio) and cash flows (55.5% cash payout ratio), although they have been volatile over the past decade. The company’s dividend yield of 3.55% is lower than the top 25% of Swedish dividend payers. Despite recent strong earnings growth, future earnings are forecast to decline, potentially impacting dividend reliability. Recent business expansions include applying for permission to build the Skidbladner offshore wind farm, enhancing long-term prospects.