Dividend Yield: 8.1%

Nordea Bank Abp, despite a forecasted average earnings decline of 2.4% annually over the next three years, maintains a stable dividend with a high yield of 8.12%, ranking in the top 25% in Sweden. The dividends are well-covered by earnings with a current payout ratio of 63.8% and an expected slight increase to 65.6% in three years, indicating sustainability despite past volatility and unreliable payment patterns. Recent financial results show robust growth with net income rising to €1.36 billion from €1.15 billion year-over-year, supporting ongoing dividend commitments.

• Take a closer look at Nordea Bank Abp's potential here in our dividend report.

• Upon reviewing our latest valuation report, Nordea Bank Abp's share price might be too pessimistic.

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, condition monitoring services with a market capitalization of approximately SEK 97.50 billion.

Operations: AB SKF generates revenue primarily through two segments: Automotive, which contributes SEK 29.79 billion, and Industrial, with SEK 72.25 billion in sales.

Dividend Yield: 3.5%

AB SKF, while trading 43.4% below estimated fair value, presents a mixed scenario for dividend seekers with its dividend yield at 3.5%, lower than the Swedish market's top quartile at 4.3%. The dividends are supported by a payout ratio of 55% and cash flow coverage of 45.2%, indicating reasonable security in payments despite an unstable historical track record over the past decade. Recent innovations highlighted at the SKF Tech & Innovation Summit may bolster future performance, but past earnings have shown volatility with a recent drop in Q1 net income to SEK 1.88 billion from SEK 2.07 billion year-over-year.

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

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

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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