Amidst a backdrop of global economic uncertainties and mixed performances across major indexes, the Swedish market continues to offer intriguing opportunities for dividend-seeking investors. As we approach July 2024, understanding the resilience and potential growth of dividend stocks becomes particularly pertinent in navigating these volatile market conditions.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 20 stocks from our Top Swedish Dividend Stocks screener.

Let's dive into some prime choices out of from the screener.

Axfood

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

Overview: Axfood AB operates in the food retail and wholesale sectors primarily in Sweden, with a market capitalization of approximately SEK 57.32 billion.

Operations: Axfood AB's revenue is primarily derived from its Dagab, Willys, Snabbgross, and Home Purchase segments, generating SEK 75.09 billion, SEK 44.82 billion, SEK 5.38 billion, and SEK 7.67 billion respectively.

Dividend Yield: 3.2%

Axfood offers a steady dividend yield of 3.2%, which, while reliable, falls below the top quartile of Swedish dividend payers. Over the past decade, dividends have shown stability and growth, supported by a sustainable payout ratio of 76.8% and a cash payout ratio of 39.3%. Earnings have increased annually by 8.6% over five years with future growth expected at about 9.89% per year, ensuring continued support for dividend payments amidst recent management changes and consistent sales growth in its quarterly reports.

• Unlock comprehensive insights into our analysis of Axfood stock in this dividend report.

• The analysis detailed in our Axfood valuation report hints at an inflated share price compared to its estimated value.

Nordic Paper Holding

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

Overview: Nordic Paper Holding AB operates globally, specializing in the production and sale of natural greaseproof and kraft paper, with a market capitalization of SEK 3.77 billion.

Operations: Nordic Paper Holding AB generates revenue primarily through two segments: Kraft Paper, which brought in SEK 2.23 billion, and Natural Greaseproof, contributing SEK 2.19 billion.

Dividend Yield: 7.1%

Nordic Paper Holding, while trading at 66.7% below its fair value, shows a promising dividend yield of 7.1%, placing it in the top 25% of Swedish dividend payers. The dividends are supported by earnings and cash flows with payout ratios of 68.3% and 78% respectively, indicating reasonable coverage despite a recent cut to SEK 4 per share as of May 2024. However, its dividend history is short and unstable, with only three years of payments amidst high debt levels.

• Navigate through the intricacies of Nordic Paper Holding with our comprehensive dividend report here.

• In light of our recent valuation report, it seems possible that Nordic Paper Holding is trading behind its estimated value.

Softronic

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

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

Operations: Softronic AB generates its revenue primarily through its Computer Services segment, which brought in SEK 838.92 million.

Dividend Yield: 6.2%

Softronic offers a dividend yield of 6.16%, ranking in the top quartile of Swedish stocks, though its sustainability is questionable with a high payout ratio of 85.5% and cash payout ratio of 94.5%. Despite this, dividends have grown over the past decade. Recent earnings show modest growth with Q2 sales at SEK 206.8 million and net income at SEK 14.6 million, slightly up from last year, but overall half-year earnings are down with a net income drop to SEK 32.6 million from SEK 33.5 million previously.

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

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

Taking Advantage

• Click this link to deep-dive into the 20 companies within our Top Swedish Dividend Stocks screener.

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Searching for a Fresh Perspective?

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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:AXFO OM:NPAPER and OM:SOF B.

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