Exploring Dividend Stocks: Avoid FastPartner And Consider One Better Option
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When exploring dividend stocks, it's essential to assess the sustainability of their payouts. High dividend yields can be enticing, but they may also indicate underlying financial challenges if the company's payout ratio is excessively high. This can be a red flag suggesting that dividends might not be sustainable in the long term. FastPartner, for instance, presents such a concern with its elevated payout ratio, making it less attractive for those seeking reliable dividend investments.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Zinzino (OM:ZZ B) | 4.44% | ★★★★★★ |
| Betsson (OM:BETS B) | 5.80% | ★★★★★☆ |
| Loomis (OM:LOOMIS) | 4.50% | ★★★★★☆ |
| HEXPOL (OM:HPOL B) | 3.39% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.06% | ★★★★★☆ |
| Duni (OM:DUNI) | 4.93% | ★★★★★☆ |
| Nordea Bank Abp (OM:NDA SE) | 8.19% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.52% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 4.45% | ★★★★★☆ |
| Bilia (OM:BILI A) | 4.66% | ★★★★☆☆ |
Click here to see the full list of 25 stocks from our Top Dividend Stocks screener.
Underneath we present one of the stocks filtered out by our screen and one to consider sidestepping.
Top Pick
Softronic
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Softronic AB (publ) specializes in providing IT and management services mainly in Sweden, with a market capitalization of approximately SEK 1.16 billion.
Operations: The company generates its revenue primarily through computer services, totaling SEK 834.42 million.
Dividend Yield: 6.1%
Softronic maintains a payout ratio of 86.6%, suggesting its dividend payments are covered by earnings, contrasting with companies whose high ratios indicate risk. However, Softronic's dividends have shown volatility and inconsistency over the past decade, lacking steady growth or stability. Additionally, a high cash payout ratio of 138% raises concerns about sustainability from cash flow perspectives. Despite these challenges, its P/E ratio at 14.3x remains attractive compared to the broader Swedish market average of 22.7x.
One To Reconsider
FastPartner
Simply Wall St Dividend Rating: ★★☆☆☆☆
Overview: FastPartner AB, a Swedish real estate firm, specializes in developing, owning, and managing both residential and commercial properties with a market capitalization of SEK 13.79 billion.
Operations: The company's revenue is generated through property management across three regions in Sweden, totaling SEK 2.23 billion.
Dividend Yield: 1.5%