As global markets face economic uncertainties, including a weakening U.S. labor market and renewed fears of a global slowdown, investors are increasingly looking for stable investment opportunities. In this context, dividend stocks have gained attention for their potential to provide steady income and mitigate market volatility. A good dividend stock typically offers consistent payouts and demonstrates financial resilience—qualities that are particularly valuable in today's fluctuating market environment.

Top 10 Dividend Stocks In Sweden

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

Below we spotlight a couple of our favorites from our exclusive screener.

Axfood

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

Overview: Axfood AB (publ) operates in the food retail and wholesale sectors primarily in Sweden, with a market cap of SEK59.80 billion.

Operations: Axfood AB (publ) generates revenue from several segments: Dagab (SEK75.09 billion), Willys (SEK44.82 billion), Snabbgross (SEK5.38 billion), Joint-Group (SEK1.45 billion), and Home Purchase (SEK7.67 billion).

Dividend Yield: 3.1%

Axfood's dividend payments have been stable and growing over the past 10 years, with a current payout ratio of 76.8% and a cash payout ratio of 39.3%, indicating strong coverage by both earnings and cash flows. Despite trading at 60.3% below its estimated fair value, Axfood's dividend yield is relatively low at 3.07%. Recent changes include the appointment of Simone Margulies as CEO and the closure of Middagsfrid due to market challenges.

• Unlock comprehensive insights into our analysis of Axfood stock in this dividend report.
• Upon reviewing our latest valuation report, Axfood's share price might be too optimistic.

Bredband2 i Skandinavien

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

Overview: Bredband2 i Skandinavien AB (publ) offers data communication and security solutions to individuals and companies in Sweden, with a market cap of SEK1.97 billion.

Operations: Bredband2 i Skandinavien AB (publ) generates revenue primarily from its National Broadband Service, amounting to SEK1.65 billion.

Dividend Yield: 4.4%

Bredband2 i Skandinavien's dividends are well covered by earnings (payout ratio: 87.6%) and cash flows (cash payout ratio: 39.1%). The company's dividend yield of 4.38% is slightly below the top tier in Sweden but remains reliable and stable over the past decade, with consistent growth. Recent earnings reports show a positive trend, with Q2 sales at SEK 429.55 million and net income at SEK 24.35 million, reflecting strong financial health to support future dividends.

• Click here to discover the nuances of Bredband2 i Skandinavien with our detailed analytical dividend report.
• Our valuation report here indicates Bredband2 i Skandinavien may be overvalued.

Nordea Bank Abp

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

Overview: Nordea Bank Abp provides banking products and services across Sweden, Finland, Norway, Denmark, and internationally with a market cap of SEK416.03 billion.

Operations: Nordea Bank Abp's revenue segments include Business Banking (€3.59 billion), Personal Banking (€4.78 billion), Asset and Wealth Management (€1.44 billion), and Large Corporates & Institutions (€2.48 billion).

Dividend Yield: 8.8%

Nordea Bank Abp's dividend yield is among the top 25% in Sweden, with a payout ratio of 63.8%, indicating dividends are well-covered by earnings. Despite recent legal issues related to anti-money laundering, Nordea has made adequate provisions and continues to collaborate with authorities. Earnings for H1 2024 showed net interest income at €3.86 billion and net income at €2.66 billion, supporting its dividend sustainability despite a historically volatile dividend track record.

• Click here and access our complete dividend analysis report to understand the dynamics of Nordea Bank Abp.
• The valuation report we've compiled suggests that Nordea Bank Abp's current price could be quite moderate.

Taking Advantage

• Click here to access our complete index of 21 Top Swedish Dividend Stocks.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Searching for a Fresh Perspective?

• 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:AXFO OM:BRE2 and OM:NDA SE.

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