Exploring Top Dividend Stocks In Switzerland June 2024
As the Switzerland market experiences fluctuations, with a recent dip influenced by anticipation of international economic updates, investors are keenly observing trends and shifts. The SMI's recent performance underscores a cautious atmosphere among market participants. In such times, identifying resilient dividend stocks can be particularly appealing as they may offer potential stability and steady returns amidst broader market uncertainties.
Top 10 Dividend Stocks In Switzerland
Name | Dividend Yield | Dividend Rating |
Cembra Money Bank (SWX:CMBN) | 5.38% | ★★★★★★ |
Vontobel Holding (SWX:VONN) | 5.67% | ★★★★★★ |
Compagnie Financière Tradition (SWX:CFT) | 4.33% | ★★★★★★ |
Banque Cantonale Vaudoise (SWX:BCVN) | 4.50% | ★★★★★★ |
St. Galler Kantonalbank (SWX:SGKN) | 4.30% | ★★★★★★ |
Novartis (SWX:NOVN) | 3.43% | ★★★★★☆ |
Roche Holding (SWX:ROG) | 3.97% | ★★★★★☆ |
EFG International (SWX:EFGN) | 4.23% | ★★★★★☆ |
Julius Bär Gruppe (SWX:BAER) | 5.07% | ★★★★★☆ |
Basellandschaftliche Kantonalbank (SWX:BLKB) | 4.71% | ★★★★★☆ |
Click here to see the full list of 28 stocks from our Top Dividend Stocks screener.
Let's dive into some prime choices out of from the screener.
Bucher Industries
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Bucher Industries AG, a global company, manufactures and sells machinery and systems for food production, packaging, harvesting, and maintaining clean and safe public spaces with a market capitalization of CHF 3.73 billion.
Operations: Bucher Industries AG's revenue is generated through five key 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 shown a consistent dividend growth over the past decade, though its current yield of 3.71% is below the top quartile in the Swiss market. Despite trading at 22.1% under its fair value, concerns arise as dividends are poorly covered by both earnings and cash flow, with a cash payout ratio of 127.1%. Additionally, earnings are projected to decline by an average of 5.2% annually over the next three years, potentially impacting future dividend sustainability.
Upon reviewing our latest valuation report, Bucher Industries' share price might be too pessimistic.
CPH Chemie + Papier Holding
Simply Wall St Dividend Rating: ★★★★★☆
Overview: CPH Chemie + Papier Holding AG operates in the production and distribution of chemicals, printing paper, and pharmaceutical packaging films, with a market capitalization of CHF 539.57 million.
Operations: CPH Chemie + Papier Holding AG generates revenue from three primary segments: CHF 262.48 million from paper, CHF 124.17 million from chemistry, and CHF 237.33 million from packaging.
Dividend Yield: 4.4%
CPH Chemie + Papier Holding offers a dividend yield of 4.44%, placing it above the Swiss market average. With a low payout ratio of 30.4% and cash payout ratio at 31.9%, its dividends are sustainably covered by both earnings and cash flow, despite a volatile dividend history over the past decade. Additionally, CPHN trades at a P/E ratio of 6.8x, suggesting good value relative to peers, although earnings are expected to decline by an average of 10.6% annually over the next three years.
EFG International
Simply Wall St Dividend Rating: ★★★★★☆
Overview: EFG International AG operates primarily in private banking, wealth management, and asset management, with a market capitalization of approximately CHF 3.92 billion.
Operations: EFG International AG generates its revenue from various geographic and functional segments, including CHF 450.20 million from Switzerland & Italy, CHF 249.70 million from Continental Europe & Middle East, CHF 177.40 million in the United Kingdom, CHF 165.30 million in Asia Pacific, and CHF 133.20 million in the Americas, complemented by specialized services like Global Markets & Treasury and Investment and Wealth Solutions which contribute CHF 83 million and CHF 122.40 million respectively.
Dividend Yield: 4.2%
EFG International, despite a top-tier dividend yield of CHF 4.23%, faces challenges with its unstable dividend history and high bad loans at 2.5%. Recent earnings growth of 56.6% and a forecasted annual growth rate of 5.43% suggest some recovery potential, supported by a reasonable payout ratio of 58.5%. Additionally, the company has extended its buyback plan till July 2024, reflecting some level of confidence in its financial stability.
Seize The Opportunity
Unlock more gems! Our Top Dividend Stocks screener has unearthed 25 more companies for you to explore.Click here to unveil our expertly curated list of 28 Top Dividend Stocks.
Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.
Contemplating Other Strategies?
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 SWX:BUCN SWX:CPHN and SWX:EFGN.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com