As of June 2024, the Swedish market, like much of Europe, is navigating a landscape marked by rising inflation and policy adjustments aimed at stabilizing economic conditions. These broader economic factors set a critical backdrop for investors considering dividend stocks, which are often valued for their potential to offer steady income in fluctuating markets.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 22 stocks from our Top Dividend Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

G5 Entertainment

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

Overview: G5 Entertainment AB (publ) specializes in developing and publishing free-to-play games for smartphones, tablets, and personal computers, primarily operating out of Sweden with a market capitalization of SEK 1.10 billion.

Operations: G5 Entertainment AB generates revenue primarily through the development and sales of casual games, which amounted to SEK 1.27 billion.

Dividend Yield: 5.7%

G5 Entertainment, a Swedish game developer, offers a dividend yield of 5.72%, placing it in the top quartile of Swedish dividend stocks. Despite a recent dip in quarterly sales to SEK 297.41 million and net income to SEK 37.48 million, its dividends are well-supported by both earnings and cash flow with payout ratios at 54.4% and 36.1%, respectively. However, G5's dividend history is relatively short at seven years with an unstable track record, suggesting caution for long-term stability seekers.

• Click here to discover the nuances of G5 Entertainment with our detailed analytical dividend report.

• Our valuation report here indicates G5 Entertainment may be undervalued.

Softronic

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

Overview: Softronic AB (publ) specializes in IT and management services mainly in Sweden, with a market capitalization of approximately SEK 1.15 billion.

Operations: Softronic AB generates its revenue primarily from computer services, totaling SEK 834.42 million.

Dividend Yield: 6.2%

Softronic, despite a recent slight decline in quarterly sales to SEK 230.1 million and net income to SEK 18 million, maintains a dividend yield of 6.19%, ranking it among the top 25% of Swedish dividend payers. However, its dividends are not well-supported by cash flows with a high cash payout ratio of 138% and have shown volatility over the past decade. Although its Price-To-Earnings ratio at 14x is favorable compared to the Swedish market average of 23.3x, concerns about the sustainability and reliability of its dividends persist due to coverage issues by earnings and fluctuating payments.