Discover Three Top Dividend Stocks On SIX Swiss Exchange With Yields Up To 4.9%

The Switzerland market has recently shown robust performance, closing higher for the third consecutive session. This uptrend, driven by optimism around U.S. interest rates and strong quarterly earnings, saw the benchmark SMI reach a new record high. In such a buoyant market environment, dividend stocks can be particularly appealing for investors looking for steady income streams combined with potential capital appreciation.

Top 10 Dividend Stocks In Switzerland

Name

Dividend Yield

Dividend Rating

Vontobel Holding (SWX:VONN)

5.39%

★★★★★★

Cembra Money Bank (SWX:CMBN)

5.14%

★★★★★★

Banque Cantonale Vaudoise (SWX:BCVN)

4.43%

★★★★★★

St. Galler Kantonalbank (SWX:SGKN)

4.33%

★★★★★★

Novartis (SWX:NOVN)

3.21%

★★★★★☆

Roche Holding (SWX:ROG)

3.77%

★★★★★☆

Julius Bär Gruppe (SWX:BAER)

4.98%

★★★★★☆

Helvetia Holding (SWX:HELN)

5.04%

★★★★★☆

Holcim (SWX:HOLN)

3.37%

★★★★★☆

Basellandschaftliche Kantonalbank (SWX:BLKB)

4.68%

★★★★★☆

Click here to see the full list of 26 stocks from our Top SIX Swiss Exchange Dividend Stocks screener.

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

Bucher Industries

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

Overview: Bucher Industries AG is a global manufacturer and seller of machinery, systems, and hydraulic components used in food production, packaging, and maintaining roads and public spaces, with a market capitalization of CHF 3.74 billion.

Operations: Bucher Industries AG's revenue is primarily generated through five segments: Kuhn Group (CHF 1.42 billion), Bucher Specials (CHF 398 million), Bucher Municipal (CHF 572.5 million), Bucher Hydraulics (CHF 743.6 million), and Bucher Emhart Glass (CHF 523.6 million).

Dividend Yield: 3.7%

Bucher Industries has demonstrated a consistent growth in earnings, increasing by 14% annually over the past five years. Despite this, earnings are projected to decline by an average of 5.9% per year over the next three years. The company's dividend yield stands at 3.69%, which is below the top quartile of Swiss dividend payers at 4.15%. Dividends have been stable and growing for a decade, supported by a reasonable payout ratio of 39.3%. However, the dividends are not well covered by free cash flows, with a high cash payout ratio of 127.1%, raising concerns about sustainability in challenging economic conditions.

SWX:BUCN Dividend History as at Jul 2024
SWX:BUCN Dividend History as at Jul 2024

Jungfraubahn Holding

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

Overview: Jungfraubahn Holding AG operates cogwheel railways and winter sports facilities in the Jungfrau region of Switzerland, with a market capitalization of CHF 1.09 billion.

Operations: Jungfraubahn Holding AG generates revenue primarily through three segments: Jungfraujoch - Top of Europe at CHF 188.24 million, Experience Mountains at CHF 45.94 million, and Winter Sports at CHF 41.26 million.

Dividend Yield: 3.3%

Jungfraubahn Holding's dividend history shows inconsistency with significant annual fluctuations over the past decade. Despite this, dividends have grown overall in the same period. Currently, its dividend yield of 3.34% is below the Swiss market's top quartile at 4.15%. However, dividends are sustainably covered by earnings and cash flows with a payout ratio of 47.8% and a cash payout ratio of 61.7%, respectively. Additionally, Jungfraubahn is trading at a 14.6% discount to its estimated fair value.

SWX:JFN Dividend History as at Jul 2024
SWX:JFN Dividend History as at Jul 2024

StarragTornos Group

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

Overview: StarragTornos Group AG specializes in developing, manufacturing, and distributing precision machine tools for various materials, with a market capitalization of CHF 277.24 million.

Operations: StarragTornos Group generates CHF 409 million from its machine tools segment.

Dividend Yield: 4.9%

StarragTornos Group offers a dividend yield of 4.9%, placing it in the top 25% of Swiss dividend payers. Despite a substantial earnings growth of 126.5% last year, its dividends are not consistently covered by free cash flow, with a high cash payout ratio of 110.6%. The company has experienced volatility in dividend payments over the past decade and significant shareholder dilution within the last year, challenging the sustainability and reliability of future dividends.

SWX:STGN Dividend History as at Jul 2024
SWX:STGN Dividend History as at Jul 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 SWX:BUCN SWX:JFN and SWX:STGN.

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