Axfood And 2 Other Top Swedish Dividend Stocks

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As global markets face economic uncertainties, including a weakening U.S. labor market and renewed fears of a global slowdown, investors are increasingly looking for stable investment opportunities. In this context, dividend stocks have gained attention for their potential to provide steady income and mitigate market volatility. A good dividend stock typically offers consistent payouts and demonstrates financial resilience—qualities that are particularly valuable in today's fluctuating market environment.

Top 10 Dividend Stocks In Sweden

Name

Dividend Yield

Dividend Rating

Betsson (OM:BETS B)

5.80%

★★★★★☆

Nordea Bank Abp (OM:NDA SE)

8.84%

★★★★★☆

Zinzino (OM:ZZ B)

3.82%

★★★★★☆

HEXPOL (OM:HPOL B)

3.69%

★★★★★☆

Bredband2 i Skandinavien (OM:BRE2)

4.38%

★★★★★☆

Axfood (OM:AXFO)

3.07%

★★★★★☆

Duni (OM:DUNI)

5.05%

★★★★★☆

Skandinaviska Enskilda Banken (OM:SEB A)

5.49%

★★★★★☆

Avanza Bank Holding (OM:AZA)

5.02%

★★★★★☆

Afry (OM:AFRY)

3.15%

★★★★☆☆

Click here to see the full list of 21 stocks from our Top Swedish Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Axfood

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

Overview: Axfood AB (publ) operates in the food retail and wholesale sectors primarily in Sweden, with a market cap of SEK59.80 billion.

Operations: Axfood AB (publ) generates revenue from several segments: Dagab (SEK75.09 billion), Willys (SEK44.82 billion), Snabbgross (SEK5.38 billion), Joint-Group (SEK1.45 billion), and Home Purchase (SEK7.67 billion).

Dividend Yield: 3.1%

Axfood's dividend payments have been stable and growing over the past 10 years, with a current payout ratio of 76.8% and a cash payout ratio of 39.3%, indicating strong coverage by both earnings and cash flows. Despite trading at 60.3% below its estimated fair value, Axfood's dividend yield is relatively low at 3.07%. Recent changes include the appointment of Simone Margulies as CEO and the closure of Middagsfrid due to market challenges.

OM:AXFO Dividend History as at Sep 2024

Bredband2 i Skandinavien

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

Overview: Bredband2 i Skandinavien AB (publ) offers data communication and security solutions to individuals and companies in Sweden, with a market cap of SEK1.97 billion.

Operations: Bredband2 i Skandinavien AB (publ) generates revenue primarily from its National Broadband Service, amounting to SEK1.65 billion.

Dividend Yield: 4.4%

Bredband2 i Skandinavien's dividends are well covered by earnings (payout ratio: 87.6%) and cash flows (cash payout ratio: 39.1%). The company's dividend yield of 4.38% is slightly below the top tier in Sweden but remains reliable and stable over the past decade, with consistent growth. Recent earnings reports show a positive trend, with Q2 sales at SEK 429.55 million and net income at SEK 24.35 million, reflecting strong financial health to support future dividends.