As European markets show resilience with the pan-European STOXX Europe 600 Index edging higher, hopes are rising for potential interest rate cuts by the European Central Bank. Against this backdrop, Swedish dividend stocks present an appealing option for investors seeking steady income and portfolio diversification.

Top 10 Dividend Stocks In Sweden

Click here to see the full list of 22 stocks from our Top Swedish Dividend Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Betsson

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

Overview: Betsson AB (publ) operates an online gaming business through its subsidiaries, focusing on the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and other international markets, with a market cap of SEK36.59 billion.

Operations: Betsson AB's revenue is primarily generated from its Casinos & Resorts segment, which accounted for €1.01 billion.

Dividend Yield: 5.5%

Betsson's dividend payments have been volatile over the past decade, despite showing some growth. The current dividend yield of 5.53% is among the top in Sweden, yet it's not well-supported by free cash flows, with a high cash payout ratio of 101.7%. Recent financial maneuvers include redeeming bonds and issuing new ones to manage debt effectively. While earnings grew by 12.2% last year, dividends remain unreliable for consistent income seekers.

• Take a closer look at Betsson's potential here in our dividend report.
• According our valuation report, there's an indication that Betsson's share price might be on the cheaper side.

Bulten

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

Overview: Bulten AB (publ) manufactures and distributes fasteners and related services for various industries, including automotive and consumer electronics, across multiple international markets, with a market cap of SEK1.44 billion.

Operations: Bulten AB (publ) generates revenue of SEK5.95 billion from its operations in manufacturing and distributing fasteners and related services across diverse sectors such as automotive and consumer electronics globally.

Dividend Yield: 3.6%

Bulten's dividend payments are covered by earnings and cash flows, with a payout ratio of 57% and a cash payout ratio of 30.9%. However, the dividend yield of 3.63% is below the top quartile in Sweden, and its track record has been volatile over the past decade. Despite having a lower-than-average price-to-earnings ratio at 15.7x compared to the Swedish market, recent executive changes could influence future strategies and stability.

• Click here to discover the nuances of Bulten with our detailed analytical dividend report.
• The analysis detailed in our Bulten valuation report hints at an inflated share price compared to its estimated value.

Solid Försäkringsaktiebolag

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

Overview: Solid Försäkringsaktiebolag (OM:SFAB) is a company that offers non-life insurance services to both private and business customers across Sweden, Denmark, Norway, Finland, Germany, Switzerland, and other international markets with a market cap of SEK1.52 billion.

Operations: Solid Försäkringsaktiebolag's revenue segments include Product at SEK320.51 million, Assistance at SEK351.63 million, and Personal Safety at SEK435.09 million.

Dividend Yield: 5.4%

Solid Försäkringsaktiebolag's dividend yield of 5.42% ranks in the top 25% of Swedish dividend payers, supported by a payout ratio of 49.1%, indicating dividends are well-covered by earnings and cash flows (cash payout ratio: 73.7%). Despite a recent start to paying dividends, its strong earnings growth (28.4% annually over five years) suggests potential for future stability. The company’s share buyback program aims to enhance shareholder value and optimize capital structure, with SEK 56.38 million spent repurchasing shares recently.

• Delve into the full analysis dividend report here for a deeper understanding of Solid Försäkringsaktiebolag.
• The analysis detailed in our Solid Försäkringsaktiebolag valuation report hints at an deflated share price compared to its estimated value.

Turning Ideas Into Actions

• Reveal the 22 hidden gems among our Top Swedish Dividend Stocks screener with a single click here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Want To Explore Some Alternatives?

• 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:BETS B OM:BULTEN and OM:SFAB.

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