As global markets react to the recent U.S. Federal Reserve rate cut, European indices have shown mixed performance, reflecting cautious investor sentiment. Amid this backdrop, dividend stocks in Sweden remain a compelling option for those seeking steady income and potential growth. In an environment where market volatility can be influenced by central bank policies, a good dividend stock often combines strong fundamentals with consistent payout history. This article will explore SSAB and two other top dividend stocks on the Swedish exchange that exemplify these qualities.

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 take a closer look at a couple of our picks from the screened companies.

SSAB

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

Overview: SSAB AB (publ) produces and sells steel products in Sweden, Finland, the rest of Europe, the United States, and internationally with a market cap of SEK52.62 billion.

Operations: SSAB AB (publ) generates revenue from various segments including 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: 9.4%

SSAB's dividend payments have increased but remain volatile over the past six years. The company's dividends are well covered by earnings (48.7%) and cash flows (49.5%). Despite a low Price-To-Earnings ratio of 5.1x, recent financials show a decline in sales and net income, with Q2 2024 sales at SEK 28.28 billion and net income at SEK 2.42 billion, compared to higher figures last year.

• Take a closer look at SSAB's potential here in our dividend report.
• In light of our recent valuation report, it seems possible that SSAB is trading behind its estimated value.

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 SEK32.78 billion.

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

Dividend Yield: 3.1%

Thule Group's dividend payments have been volatile over the past decade, though they are covered by earnings (87.8% payout ratio) and free cash flow (56.1%). Recent Q2 2024 results showed a slight increase in sales to SEK 3.10 billion and net income to SEK 559 million, indicating stable financial performance. However, its dividend yield of 3.06% is lower than the top quartile of Swedish dividend payers, raising concerns about its attractiveness for income-focused investors.

• Click here and access our complete dividend analysis report to understand the dynamics of Thule Group.
• Our valuation report here indicates Thule Group may be overvalued.

Zinzino

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

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 SEK3.09 billion.

Operations: Zinzino AB (publ) generates revenue primarily from its Zinzino (including VMA Life) segment, which accounts for SEK1.83 billion, and the Faun segment, contributing SEK170.31 million.

Dividend Yield: 3.3%

Zinzino's dividends are well-covered by earnings (56.3% payout ratio) and free cash flow (47.4% cash payout ratio), ensuring sustainability. The dividend yield of 3.33%, though reliable and growing over the past decade, is lower than the top quartile of Swedish dividend payers. Recent inclusion in the S&P Global BMI Index and robust financial performance, with Q2 2024 sales at SEK 485.1 million and net income at SEK 47.99 million, underscore its stable growth trajectory for dividend investors.

• Click here to discover the nuances of Zinzino with our detailed analytical dividend report.
• The valuation report we've compiled suggests that Zinzino's current price could be quite moderate.

Key Takeaways

• Click here to access our complete index of 20 Top Swedish Dividend Stocks.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

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

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