As of October 2024, the Swedish market is navigating a complex global landscape marked by escalating geopolitical tensions in the Middle East and fluctuating oil prices, which have impacted investor sentiment across Europe. Despite these challenges, dividend stocks remain an attractive option for investors seeking steady income streams amidst market volatility. When considering dividend stocks in such uncertain times, it is important to focus on companies with strong fundamentals and a history of consistent payouts.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 23 stocks from our Top Swedish Dividend Stocks screener.

Here's a peek at a few of the choices from the screener.

Axfood

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

Overview: Axfood AB (publ) operates in the food retail and wholesale sectors mainly in Sweden, with a market cap of SEK60.84 billion.

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

Dividend Yield: 3%

Axfood's dividend profile is characterized by stability and reliable growth over the past decade, with dividends well-covered by both earnings (76.8% payout ratio) and cash flows (39.3% cash payout ratio). Despite a modest yield of 3.02%, which is below the Swedish market's top tier, Axfood maintains consistent payments amidst recent executive changes and strategic shifts like closing Middagsfrid. Earnings showed slight growth recently, supporting ongoing dividend sustainability.

• Take a closer look at Axfood's potential here in our dividend report.

• Insights from our recent valuation report point to the potential overvaluation of Axfood shares in the market.

Nordea Bank Abp

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

Overview: Nordea Bank Abp provides a range of banking products and services across Sweden, Finland, Norway, Denmark, and internationally with a market cap of approximately SEK36.53 billion.

Operations: Nordea Bank Abp generates its revenue from several segments, including 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 ranks in the top 25% of Swedish payers, though its dividend history is marked by volatility and unreliability over the past decade. Despite this, dividends are currently covered by earnings with a payout ratio of 63.8%, expected to remain sustainable in three years at 68.6%. Recent financial results show stable net interest income growth, yet future earnings are forecasted to decline, posing potential challenges for dividend consistency.

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

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

Rejlers

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

Overview: Rejlers AB (publ) provides technical and engineering consultancy services across Sweden, Finland, Norway, and the United Arab Emirates, with a market cap of SEK3.29 billion.

Operations: Rejlers AB (publ) generates revenue from its technical and engineering consultancy services primarily in Sweden (SEK2.63 billion), Finland (SEK1.37 billion), and Norway, including Embriq (SEK304.40 million).

Dividend Yield: 3%

Rejlers' dividend yield is relatively low compared to the top Swedish payers, and its dividend history has been marked by volatility. However, the company's dividends are well-covered by both earnings and cash flows, with a payout ratio of 50% and a cash payout ratio of 30.7%. Recent projects in energy efficiency and infrastructure highlight Rejlers' commitment to sustainable growth, potentially supporting future dividend stability despite past inconsistencies.

• Navigate through the intricacies of Rejlers with our comprehensive dividend report here.

• Our valuation report unveils the possibility Rejlers' shares may be trading at a discount.

Seize The Opportunity

• Access the full spectrum of 23 Top Swedish Dividend Stocks by clicking on this link.

• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.

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Ready For A Different Approach?

• 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:NDA SE and OM:REJL B.

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