As global markets react to recent stimulus measures from China and mixed economic signals from the U.S. and Europe, Sweden's market has been navigating its own set of challenges and opportunities. With interest rate cuts by the Swedish central bank aiming to stimulate growth, investors are keenly watching dividend stocks for stable returns. In this environment, a good dividend stock is characterized by consistent payouts, strong fundamentals, and resilience in fluctuating market conditions.

Top 10 Dividend Stocks In Sweden

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

We're going to check out a few of the best picks from our screener tool.

Softronic

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

Overview: Softronic AB (publ) offers IT and management services primarily in Sweden and has a market cap of SEK1.16 billion.

Operations: Softronic AB (publ) generates revenue of SEK838.92 million from its Computer Services segment.

Dividend Yield: 6.2%

Softronic's dividend yield of 6.15% is among the highest in Sweden, but its sustainability is questionable due to a high cash payout ratio of 94.5%, indicating dividends are not well covered by free cash flows. While earnings grew by 34% last year and the P/E ratio (13.9x) suggests good value, dividends have been volatile and unreliable over the past decade, with an 85.5% payout ratio covered by earnings but not by cash flow. Recent Q2 results show modest growth in sales and net income compared to last year.

• Click to explore a detailed breakdown of our findings in Softronic's dividend report.

• The valuation report we've compiled suggests that Softronic's current price could be inflated.

SSAB

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

Overview: SSAB AB (publ) is a company that produces and sells steel products in Sweden, Finland, the rest of Europe, the United States, and internationally, with a market cap of SEK52.98 billion.

Operations: SSAB AB (publ) generates revenue through its segments Tibnor (SEK12.50 billion), SSAB Europe (SEK43.44 billion), SSAB Americas (SEK26.81 billion), Ruukki Construction (SEK5.41 billion), and SSAB Special Steels (SEK30.49 billion).

Dividend Yield: 9.3%

SSAB's dividend yield of 9.3% is among the highest in Sweden, with a payout ratio of 48.7% and a cash payout ratio of 49.5%, indicating dividends are well covered by earnings and cash flows. However, SSAB has only paid dividends for six years, during which payments have been volatile and unreliable. Recent Q2 results showed a decline in sales to SEK 28.28 billion from SEK 31.78 billion year-over-year, with net income falling to SEK 2.42 billion from SEK 3.92 billion.

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

• According our valuation report, there's an indication that SSAB's share price might be on the cheaper side.

Thule Group

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

Overview: Thule Group AB (publ) is a sports and outdoor company operating in Sweden and internationally, with a market cap of SEK33.16 billion.

Operations: Thule Group AB (publ) generates revenue primarily from its Outdoor & Bags segment, which amounted to SEK9.40 billion.

Dividend Yield: 3%

Thule Group reported solid earnings for the second quarter of 2024, with sales of SEK 3.10 billion and net income of SEK 559 million, showing year-over-year growth. The company's dividend payments are covered by both earnings (87.8% payout ratio) and cash flows (56.1% cash payout ratio). However, Thule's dividend history is unstable with volatile payments over the past decade, and its current yield of 3.03% is lower than top-tier Swedish dividend stocks.

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

• Our expertly prepared valuation report Thule Group implies its share price may be too high.

Turning Ideas Into Actions

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Looking For Alternative Opportunities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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:SOF B OM:SSAB A and OM:THULE.

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