BioGaia Leads Three Exceptional Swedish Dividend Stocks

editorial-team@simplywallst.com (Simply Wall St)

24 June 2024 at 10:04 pm·4-min read

As global markets exhibit mixed signals with some regions showing resilience and others facing downturns, Sweden's market remains a point of interest for investors looking for stability and growth in dividends. Amidst this backdrop, understanding the fundamentals of strong dividend stocks becomes crucial, particularly those that demonstrate consistent payouts and potential for long-term value.

Top 10 Dividend Stocks In Sweden

Name	Dividend Yield	Dividend Rating
Betsson (OM:BETS B)	6.09%	★★★★★☆
Zinzino (OM:ZZ B)	4.26%	★★★★★☆
Loomis (OM:LOOMIS)	4.38%	★★★★★☆
HEXPOL (OM:HPOL B)	3.24%	★★★★★☆
Axfood (OM:AXFO)	3.07%	★★★★★☆
Duni (OM:DUNI)	4.83%	★★★★★☆
Skandinaviska Enskilda Banken (OM:SEB A)	5.55%	★★★★★☆
Avanza Bank Holding (OM:AZA)	4.30%	★★★★★☆
Nordea Bank Abp (OM:NDA SE)	8.13%	★★★★★☆
Bilia (OM:BILI A)	4.68%	★★★★☆☆

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

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

BioGaia

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

Overview: BioGaia AB, a healthcare company based in Sweden, specializes in delivering probiotic products globally and has a market capitalization of approximately SEK 12.64 billion.

Operations: BioGaia AB generates its revenue primarily through two segments: Pediatrics, which brought in SEK 999.84 million, and Adult Health, contributing SEK 293.44 million.

Dividend Yield: 5.5%

BioGaia's strategic expansion into Australia and New Zealand could bolster its market presence, tapping into significant probiotic demand. Despite a slight increase in Q1 2024 earnings, with sales rising to SEK 369.8 million and net income at SEK 121.85 million, its dividend sustainability is questionable. The dividend yield of 5.51% is attractive but poorly covered by cash flows, reflecting a high cash payout ratio of 215.5%. Moreover, BioGaia's historical dividend volatility suggests potential risks for consistent payouts.

OM:BIOG B Dividend History as at Jun 2024

HEXPOL

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

Overview: HEXPOL AB (publ) specializes in the development, manufacture, and sale of polymer compounds and engineered products across Sweden, Europe, the Americas, and Asia, with a market capitalization of SEK 42.47 billion.

Operations: HEXPOL AB generates SEK 20.48 billion from its Compounding segment and SEK 1.59 billion from its Engineered Products division.

Dividend Yield: 3.2%

HEXPOL AB, valued at 34.3% below its fair value, offers a modest dividend yield of 3.24%, lower than the Swedish market's top quartile. Despite this, its dividends are sustainably covered by both earnings and cash flows with payout ratios near 54.9%. The company has maintained stable dividends over the past decade and recently announced a SEK 6.00 per share dividend for FY2023 at its AGM on April 26, 2024. Additionally, HEXPOL is actively seeking acquisitions to fuel growth, indicating potential future enhancements to shareholder value.

OM:HPOL B Dividend History as at Jun 2024

Skandinaviska Enskilda Banken

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

Overview: Skandinaviska Enskilda Banken AB (publ), commonly known as SEB, is a Swedish financial services group offering corporate, retail, investment, and private banking services with a market capitalization of approximately SEK 315.52 billion.

Operations: Skandinaviska Enskilda Banken AB generates revenue through several segments: Baltic (SEK 13.55 billion), Corporate & Private Customers excluding Private Wealth Management & Family Office (SEK 25.42 billion), Large Corporates & Financial Institutions (SEK 31.98 billion), Private Wealth Management & Family Office (SEK 4.46 billion), Investment Management (SEK 3.16 billion), and Life Insurance (SEK 3.75 billion).

Dividend Yield: 5.6%

Skandinaviska Enskilda Banken AB (SEB A) has experienced a 27.9% increase in earnings over the past year, with dividends currently and forecast to be covered by earnings at 46.3% and 59.4%, respectively. Despite this coverage, SEB A’s dividend history shows volatility and unreliability over the last decade, with a notable decline forecasted at an average of 6.6% annually for the next three years. Recently, SEB A reported a slight increase in net income from SEK 9,393 million to SEK 9,503 million for Q1 2024.

OM:SEB A Dividend History as at Jun 2024

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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:BIOG B OM:HPOL B and OM:SEB A.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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