We are experiencing some temporary issues. The market data on this page is currently delayed. Please bear with us as we address this and restore your personalized lists.
Swedish Dividend Stocks Spotlight Bravida Holding And Two More
As the European Central Bank's recent interest rate cut fuels expectations of further monetary easing, Swedish markets are drawing attention from investors seeking stability and income through dividend stocks. In this environment, a good stock is often characterized by its ability to maintain consistent dividend payouts, especially as economic conditions continue to evolve.
Overview: Bravida Holding AB (publ) offers technical services and installations for buildings and industrial facilities across Sweden, Norway, Denmark, and Finland, with a market cap of SEK15.96 billion.
Operations: Bravida Holding AB (publ) generates revenue through its provision of technical services and installations for buildings and industrial facilities in Sweden, Norway, Denmark, and Finland.
Dividend Yield: 4.5%
Bravida Holding offers a compelling dividend profile with a yield in the top 25% of Swedish dividend payers. Despite only nine years of payouts, dividends have been stable and are well-covered by earnings (65% payout ratio) and cash flows (34.8% cash payout ratio). Trading at 63.3% below its estimated fair value, Bravida is considered a good relative value compared to peers, with analysts projecting significant stock price appreciation.
Overview: New Wave Group AB (publ) designs, acquires, and develops brands and products across the corporate, sports, gifts, and home furnishings sectors internationally with a market cap of SEK14.42 billion.
Operations: New Wave Group AB's revenue is primarily derived from its Corporate segment at SEK4.68 billion, followed by Sports & Leisure at SEK3.91 billion, and Gifts & Home Furnishings at SEK877.40 million.
Dividend Yield: 3.2%
New Wave Group's dividend yield is lower than the top 25% of Swedish dividend payers, but dividends are well-covered by earnings and cash flows with payout ratios of 47.9% and 37.8%, respectively. Despite an increase in dividend payments over the past decade, their reliability has been inconsistent due to volatility. Recent executive changes include Anna Gullmarstrand's appointment as CFO, which may influence future financial strategies amidst a backdrop of declining earnings for the first half of 2024 compared to last year.
Overview: Zinzino AB (publ) is a direct sales company that offers dietary supplements and skincare products in Sweden and internationally, with a market cap of SEK3.18 billion.
Operations: Zinzino AB (publ) generates its revenue primarily from its Zinzino (Incl. VMA Life) segment, which accounts for SEK1.83 billion, alongside a smaller contribution of SEK170.31 million from the Faun segment.
Dividend Yield: 3.3%
Zinzino's dividend yield of 3.26% is below the top 25% in Sweden, yet dividends are reliably covered by earnings and cash flows with payout ratios of 56.3% and 47.7%, respectively. Over the past decade, Zinzino has consistently increased its dividends without volatility. Recent financial performance shows robust growth, with a notable revenue increase of 39% year-over-year in August and inclusion in the S&P Global BMI Index, reflecting positive market momentum.
Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.
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:BRAV OM:NEWA B and OM:ZZ B.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]
