As global markets continue to recover and hopes for economic stability grow, the Swedish stock market has shown resilience, mirroring gains seen across Europe. With this backdrop, identifying strong dividend stocks becomes crucial for investors seeking reliable income streams in a dynamic market environment. In this article, we will explore three top Swedish dividend stocks that stand out due to their consistent performance and potential for stable returns amidst the current economic conditions.

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.

Axfood

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

Overview: Axfood AB (publ) operates in the food retail and wholesale sectors mainly in Sweden, with a market cap of SEK59.69 billion.

Operations: Axfood AB (publ) generates revenue primarily from its Dagab segment (SEK75.09 billion), Willys segment (SEK44.82 billion), Snabbgross segment (SEK5.38 billion), Joint-Group segment (SEK1.45 billion), and Home Purchase segment (SEK7.67 billion).

Dividend Yield: 3.1%

Axfood’s dividend yield of 3.07% is lower than the Swedish market's top 25%, but it has been stable and growing over the past decade. Recent earnings showed a slight decline in net income for Q2 2024, but overall six-month results were positive with sales reaching SEK 41.30 billion. The company's payout ratios indicate dividends are well-covered by both earnings (76.8%) and cash flows (39.3%). Leadership changes include Simone Margulies becoming CEO, bringing extensive industry experience to her role.

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

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

Betsson

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

Overview: Betsson AB (publ) operates and manages online gaming businesses across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK18.05 billion.

Operations: Betsson AB (publ) generates revenue primarily from its Casinos & Resorts segment, amounting to €1.01 billion.

Dividend Yield: 5.7%

Betsson's dividend yield of 5.69% places it in the top 25% of Swedish dividend payers, though its payments have been volatile over the past decade. Despite this, dividends are well-covered by both earnings and cash flows with payout ratios around 50%. Recent Q2 earnings showed sales growth to EUR 271.5 million but a slight drop in net income to EUR 45.5 million compared to last year. The company is also expanding into new markets like Peru.

• Navigate through the intricacies of Betsson with our comprehensive dividend report here.

• Our valuation report here indicates Betsson may be undervalued.

Solid F?rs?kringsaktiebolag

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

Overview: Solid F?rs?kringsaktiebolag (OM:SFAB) offers non-life insurance services to private and business customers across several countries including Sweden, Denmark, Norway, Finland, Germany, Switzerland and internationally with a market cap of SEK1.59 billion.

Operations: Solid F?rs?kringsaktiebolag (OM:SFAB) generates revenue from three primary segments: Product (SEK320.51 million), Assistance (SEK351.63 million), and Personal Safety (SEK435.09 million).

Dividend Yield: 5.2%

Solid F?rs?kringsaktiebolag's dividend yield of 5.19% places it in the top 25% of Swedish dividend payers. While it's too early to determine the stability and reliability of its dividends, they are well-covered by earnings (49.1% payout ratio) and cash flows (73.7% cash payout ratio). Recent Q2 earnings showed net income growth to SEK 40.95 million from SEK 39.21 million a year ago, supporting its dividend sustainability despite a nascent track record.

• Click here to discover the nuances of Solid F?rs?kringsaktiebolag with our detailed analytical dividend report.

• The valuation report we've compiled suggests that Solid F?rs?kringsaktiebolag's current price could be quite moderate.

Next Steps

• Discover the full array of 23 Top Swedish Dividend Stocks right here.

• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.

• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:BETS B and OM:SFAB.

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