As European inflation nears the central bank’s target and the pan-European STOXX Europe 600 Index reaches record highs, investors are increasingly looking towards stable income opportunities. In this context, dividend stocks in Sweden offer a compelling option for those seeking consistent returns amidst economic optimism. A good dividend stock typically combines a solid track record of payouts with strong fundamentals, making it an attractive choice in the current market environment.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 18 stocks from our Top Swedish Dividend Stocks screener.

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

Knowit

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

Overview: Knowit AB (publ) is a consultancy company that develops digital solutions and has a market cap of SEK4.47 billion.

Operations: Knowit AB (publ) generates revenue from four main segments: Insight (SEK898.95 million), Solutions (SEK3.90 billion), Experience (SEK1.44 billion), and Connectivity (SEK1.02 billion).

Dividend Yield: 3.2%

Knowit's dividend payments have been volatile over the past decade, though they have increased overall. The current payout ratio of 77.3% indicates dividends are covered by earnings, and the cash payout ratio of 41.6% suggests strong cash flow coverage. However, its dividend yield of 3.18% is lower than the top quartile in Sweden's market (4.28%). Recent earnings reports show a decline in revenue and net income compared to last year, potentially impacting future payouts.

• Unlock comprehensive insights into our analysis of Knowit stock in this dividend report.
• According our valuation report, there's an indication that Knowit's share price might be on the cheaper side.

Loomis

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

Overview: Loomis AB (publ) offers services in the distribution, payments, handling, storage, and recycling of cash and other valuables with a market cap of SEK24.34 billion.

Operations: Loomis AB (publ) generates revenue from its segments including Loomis Pay (SEK 77 million), Europe and Latin America (SEK 14.32 billion), and the United States of America (SEK 15.45 billion).

Dividend Yield: 3.6%

Loomis has seen its dividend payments increase over the past decade, though they have been volatile. The company’s recent earnings report shows improved figures, with Q2 2024 sales at SEK 7.64 billion and net income of SEK 396 million. Despite a relatively low dividend yield of 3.58%, dividends are well-covered by both earnings (payout ratio: 59.4%) and cash flows (cash payout ratio: 26.3%). Recent share buybacks could also support future dividend stability.

• Delve into the full analysis dividend report here for a deeper understanding of Loomis.
• The valuation report we've compiled suggests that Loomis' current price could be quite moderate.

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 SEK2.72 billion.

Operations: Zinzino AB (publ) generates revenue primarily from its Zinzino (Incl. VMA Life) segment, which accounts for SEK1.74 billion, and Faun segment, which contributes SEK161.20 million.

Dividend Yield: 3.8%

Zinzino's dividend yield of 3.78% is below the top 25% in Sweden but remains reliable and stable over the past decade. Dividends are well-covered by both earnings (payout ratio: 59.9%) and cash flows (cash payout ratio: 59.3%). Recent sales growth, including a 13% revenue increase in July to SEK 169.9 million, underscores robust business performance, although significant insider selling over the past three months warrants caution for potential investors.

• Click here to discover the nuances of Zinzino with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Zinzino is trading behind its estimated value.

Taking Advantage

• Investigate our full lineup of 18 Top Swedish Dividend Stocks right here.
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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:KNOW OM:LOOMIS and OM:ZZ B.

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