Yahoo Finance Steering Clear Of CoinShares International With One Superior Dividend Stock Option
Investing in dividend stocks can be a prudent way to generate steady income from your portfolio. However, it's essential to scrutinize the sustainability of these dividends. A high payout ratio, for instance, might indicate that a company is paying more to its shareholders than it can afford, potentially jeopardizing future payouts. CoinShares International exemplifies this concern with its challenging dividend cover situation.
Top 10 Dividend Stocks In Sweden
Name | Dividend Yield | Dividend Rating |
Zinzino (OM:ZZ B) | 4.48% | ★★★★★★ |
Betsson (OM:BETS B) | 5.91% | ★★★★★☆ |
Loomis (OM:LOOMIS) | 4.53% | ★★★★★☆ |
HEXPOL (OM:HPOL B) | 3.39% | ★★★★★☆ |
Axfood (OM:AXFO) | 3.05% | ★★★★★☆ |
Duni (OM:DUNI) | 4.92% | ★★★★★☆ |
Nordea Bank Abp (OM:NDA SE) | 8.28% | ★★★★★☆ |
Skandinaviska Enskilda Banken (OM:SEB A) | 5.43% | ★★★★★☆ |
Avanza Bank Holding (OM:AZA) | 4.47% | ★★★★★☆ |
Bilia (OM:BILI A) | 4.66% | ★★★★☆☆ |
Click here to see the full list of 24 stocks from our Top Dividend Stocks screener.
Let's review one of the notable picks from our screened stocks and one not so great.
Top Pick
Betsson (OM:BETS B)
Simply Wall St Dividend Rating: ★★★★★☆
Overview: Betsson AB operates an online gaming business across the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market capitalization of approximately SEK 17.01 billion.
Operations: The company's revenue from its Casinos & Resorts segment amounts to approximately €0.97 billion.
Dividend Yield: 5.9%
Betsson's 5.91% dividend yield ranks well above the Swedish market average, supported by a sustainable payout ratio of 48.9%. Despite a volatile dividend history over the past decade, recent earnings growth of 32.9% and strategic expansions into new markets like Peru suggest potential for stability and growth. Trading at significant undervaluation, Betsson also shows promise with analyst projections indicating a potential price increase of 22.4%. However, investors should note the historical instability in its dividend payments.
Navigate through the intricacies of Betsson with our comprehensive dividend report here.
Our valuation report unveils the possibility Betsson's shares may be trading at a discount.
One To Reconsider
CoinShares International (OM:CS)
Simply Wall St Dividend Rating: ★☆☆☆☆☆
Overview: CoinShares International Limited operates in the digital assets and blockchain technology sector based in Jersey, with a market capitalization of approximately SEK 3.73 billion.
Operations: The company generates revenue primarily through asset management, contributing £53.23 million, and capital markets activities, which add a smaller portion at £0.007 million.
Dividend Yield: 3%
CoinShares International, despite a recent policy aiming to distribute 20-40% of annual comprehensive income as dividends, faces significant challenges. The company reported a substantial net loss of GBP 1.32 billion in Q1 2024, reversing from a net profit last year. We do note that due to the accounting treatment of companies with significant digital assets, CoinShares net loss is not truly representative of the underlying performance of the company for that period. In periods that have experienced an increase in digital asset prices and therefore rises in the ETP related obligations, this can manifest as a significant loss after tax.
In fact, the company actually improved Adjusted EBITDA for the quarter, reporting an EBITDA of £34.2 million, up significantly compared to £7.0 million Q1 2023.
With this in mind, CoinShares Internatinoal is not particularly raising concerns about the sustainability of its dividend payments, despite it not being covered by GAAP earnings or cash flows. However, its dividend yield of 3.05% is below the top quartile in the Swedish market, making it less attractive compared to peers with higher and more sustainable yields.
Click here and access our complete dividend analysis report to understand the dynamics of CoinShares International.
Where To Now?
Click through to start exploring the rest of the 22 Top Dividend Stocks now.
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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.
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