Yahoo Finance Exploring Swiss Dividend Stocks In May 2024
The Switzerland market displayed resilience, closing slightly up on Thursday amidst a backdrop of mixed corporate updates and European economic data. The SMI index's modest gain reflects a cautiously optimistic investor sentiment in the region. In this context, exploring dividend stocks can be particularly appealing, as they offer potential for steady income in an environment where careful selection aligns with current market dynamics.
Top 10 Dividend Stocks In Switzerland
Name | Dividend Yield | Dividend Rating |
Roche Holding (SWX:ROG) | 4.14% | ★★★★★★ |
Cembra Money Bank (SWX:CMBN) | 5.59% | ★★★★★★ |
Vontobel Holding (SWX:VONN) | 5.41% | ★★★★★★ |
Banque Cantonale Vaudoise (SWX:BCVN) | 4.63% | ★★★★★★ |
St. Galler Kantonalbank (SWX:SGKN) | 4.31% | ★★★★★★ |
Novartis (SWX:NOVN) | 3.54% | ★★★★★☆ |
EFG International (SWX:EFGN) | 4.55% | ★★★★★☆ |
Julius Bär Gruppe (SWX:BAER) | 4.64% | ★★★★★☆ |
Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.65% | ★★★★★☆ |
Helvetia Holding (SWX:HELN) | 4.87% | ★★★★★☆ |
Click here to see the full list of 27 stocks from our Top Dividend Stocks screener.
Underneath we present a selection of stocks filtered out by our screen.
Burkhalter Holding
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Burkhalter Holding AG specializes in providing electrical engineering services to the construction industry across Switzerland, with a market capitalization of approximately CHF 990.36 million.
Operations: Burkhalter Holding AG generates CHF 1.16 billion primarily from its electrical engineering services segment.
Dividend Yield: 4.8%
Burkhalter Holding AG reported a significant revenue increase to CHF 1.13 billion in 2023, up from CHF 805.92 million, with net income rising to CHF 51.87 million. Despite this growth, the company's dividend track record remains unstable with volatile payments over the past decade. Currently, dividends are supported by both earnings and cash flows with payout ratios of 89.9% and 87.1%, respectively. The stock trades at an attractive valuation, being 18.5% below estimated fair value.
Unlock comprehensive insights into our analysis of Burkhalter Holding stock in this dividend report.
Our expertly prepared valuation report Burkhalter Holding implies its share price may be too high.
St. Galler Kantonalbank
Simply Wall St Dividend Rating: ★★★★★★
Overview: St. Galler Kantonalbank AG, a cantonal bank based in Switzerland, offers a range of banking products and services primarily to local residents and small to mid-sized businesses in the Canton of St. Gallen, with a market capitalization of CHF 2.64 billion.
Operations: St. Galler Kantonalbank AG generates its revenue by providing banking products and services to individuals and small to mid-sized enterprises in the Canton of St. Gallen, Switzerland.
Dividend Yield: 4.3%
St. Galler Kantonalbank offers a solid dividend yield of 4.31%, ranking in the top 25% of Swiss dividend payers. The bank's dividends have shown consistent growth and stability over the past decade, supported by a reasonable payout ratio of 54.9%. Earnings have grown by 5.2% annually over the last five years, and future dividends are expected to be well covered with a forecasted payout ratio of 49.2% in three years, underscoring reliable payments amidst a prudent allowance for bad loans at 55%.
Swiss Re
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Swiss Re AG operates globally, offering wholesale reinsurance, insurance, and various insurance-based risk transfer solutions with a market capitalization of CHF 32.29 billion.
Operations: Swiss Re AG generates revenue through three primary segments: Corporate Solutions at $6.06 billion, Life & Health Reinsurance at $18.09 billion, and Property & Casualty Reinsurance at $23.74 billion.
Dividend Yield: 5.6%
Swiss Re's dividend history shows instability with significant fluctuations over the past decade, despite a recent 6% increase to US$6.80 per share for 2023. The dividends are adequately supported by both earnings and cash flows, with payout ratios of 53.9% and cash payout ratios of 48.3%, respectively. Earnings have surged by 168.7% over the past year and are projected to grow annually by 5.32%. However, Swiss Re trades at a substantial discount, valued at 66.9% below estimated fair value, suggesting potential undervaluation relative to its peers.
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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:BRKN SWX:SGKN and SWX:SREN.
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