BioGaia Leads Three Exceptional Swedish Dividend Stocks
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As global markets exhibit mixed signals with some regions showing resilience and others facing downturns, Sweden's market remains a point of interest for investors looking for stability and growth in dividends. Amidst this backdrop, understanding the fundamentals of strong dividend stocks becomes crucial, particularly those that demonstrate consistent payouts and potential for long-term value.
Top 10 Dividend Stocks In Sweden
| Name | Dividend Yield | Dividend Rating |
| Betsson (OM:BETS B) | 6.09% | ★★★★★☆ |
| Zinzino (OM:ZZ B) | 4.26% | ★★★★★☆ |
| Loomis (OM:LOOMIS) | 4.38% | ★★★★★☆ |
| HEXPOL (OM:HPOL B) | 3.24% | ★★★★★☆ |
| Axfood (OM:AXFO) | 3.07% | ★★★★★☆ |
| Duni (OM:DUNI) | 4.83% | ★★★★★☆ |
| Skandinaviska Enskilda Banken (OM:SEB A) | 5.55% | ★★★★★☆ |
| Avanza Bank Holding (OM:AZA) | 4.30% | ★★★★★☆ |
| Nordea Bank Abp (OM:NDA SE) | 8.13% | ★★★★★☆ |
| Bilia (OM:BILI A) | 4.68% | ★★★★☆☆ |
Click here to see the full list of 23 stocks from our Top Dividend Stocks screener.
We're going to check out a few of the best picks from our screener tool.
BioGaia
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: BioGaia AB, a healthcare company based in Sweden, specializes in delivering probiotic products globally and has a market capitalization of approximately SEK 12.64 billion.
Operations: BioGaia AB generates its revenue primarily through two segments: Pediatrics, which brought in SEK 999.84 million, and Adult Health, contributing SEK 293.44 million.
Dividend Yield: 5.5%
BioGaia's strategic expansion into Australia and New Zealand could bolster its market presence, tapping into significant probiotic demand. Despite a slight increase in Q1 2024 earnings, with sales rising to SEK 369.8 million and net income at SEK 121.85 million, its dividend sustainability is questionable. The dividend yield of 5.51% is attractive but poorly covered by cash flows, reflecting a high cash payout ratio of 215.5%. Moreover, BioGaia's historical dividend volatility suggests potential risks for consistent payouts.
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Take a closer look at BioGaia's potential here in our dividend report.
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Our valuation report unveils the possibility BioGaia's shares may be trading at a premium.
HEXPOL
Simply Wall St Dividend Rating: ★★★★★☆
Overview: HEXPOL AB (publ) specializes in the development, manufacture, and sale of polymer compounds and engineered products across Sweden, Europe, the Americas, and Asia, with a market capitalization of SEK 42.47 billion.
Operations: HEXPOL AB generates SEK 20.48 billion from its Compounding segment and SEK 1.59 billion from its Engineered Products division.
Dividend Yield: 3.2%
HEXPOL AB, valued at 34.3% below its fair value, offers a modest dividend yield of 3.24%, lower than the Swedish market's top quartile. Despite this, its dividends are sustainably covered by both earnings and cash flows with payout ratios near 54.9%. The company has maintained stable dividends over the past decade and recently announced a SEK 6.00 per share dividend for FY2023 at its AGM on April 26, 2024. Additionally, HEXPOL is actively seeking acquisitions to fuel growth, indicating potential future enhancements to shareholder value.