Dividend Yield: 8.2%

Nordea Bank Abp offers a high dividend yield of 8.2%, placing it among the top 25% of Swedish dividend payers. Despite a volatile dividend history over the past decade, recent earnings coverage suggests stability with a current payout ratio of 63.8%. However, earnings are projected to decrease by an average of 2.5% annually over the next three years, potentially challenging future dividend sustainability. The bank's stock is trading at 51.5% below estimated fair value, indicating potential undervaluation.

• Click here and access our complete dividend analysis report to understand the dynamics of Nordea Bank Abp.

• Our valuation report here indicates Nordea Bank Abp may be undervalued.

AB SKF

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

Overview: AB SKF (publ) is a global company that designs, manufactures, and sells bearings and units, seals, lubrication systems, and offers related services with a market capitalization of approximately SEK 102.79 billion.

Operations: AB SKF generates SEK 29.79 billion from its Automotive segment and SEK 72.25 billion from its Industrial segment in revenue.

Dividend Yield: 3.3%

AB SKF's dividend yield at 3.32% is lower than the top quartile of Swedish dividend stocks. Despite a volatile history, dividends are currently well-supported by both earnings and cash flows, with payout ratios of 55% and 45.2%, respectively. Recent performance shows a dip in Q1 sales and net income year-over-year, but the company maintains positive growth forecasts and has increased its annual dividend to SEK 7.50 per share as of March 2024.

• Get an in-depth perspective on AB SKF's performance by reading our dividend report here.

• Our comprehensive valuation report raises the possibility that AB SKF is priced lower than what may be justified by its financials.

Key Takeaways

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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.

Companies discussed in this article include OM:HPOL B OM:NDA SE and OM:SKF B.

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