The Swedish stock market has been navigating a complex landscape, influenced by global economic shifts and recent monetary policy decisions. Despite these challenges, dividend stocks in Sweden continue to offer attractive yields for investors seeking stable income streams. In this article, we will explore three Swedish dividend stocks yielding up to 9.9%. A good dividend stock typically combines strong financial health with consistent payout history, making it a reliable choice in today's fluctuating market conditions.

Top 10 Dividend Stocks In Sweden

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

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

BioGaia

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

Overview: BioGaia AB (publ) is a healthcare company that provides probiotic products worldwide and has a market cap of SEK11.30 billion.

Operations: BioGaia AB (publ) generates revenue primarily from its Pediatrics segment, which accounts for SEK1072.93 million, and its Adult Health segment, contributing SEK288.68 million.

Dividend Yield: 6.2%

BioGaia's dividend yield of 6.18% places it among the top 25% of dividend payers in Sweden, yet its sustainability is questionable. Despite a decade-long increase in dividends, they are not well covered by free cash flow, with a high cash payout ratio of 193.8%. Recent earnings show promising growth, with Q2 sales at SEK 384.12 million and net income at SEK 111.01 million, but significant insider selling raises concerns about future stability.

• Get an in-depth perspective on BioGaia's performance by reading our dividend report here.

• The valuation report we've compiled suggests that BioGaia's current price could be quite moderate.

HEXPOL

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

Overview: HEXPOL AB (publ) develops, manufactures, and sells various polymer compounds and engineered products across Sweden, Europe, the Americas, and Asia with a market cap of SEK36.54 billion.

Operations: HEXPOL AB (publ) generates revenue primarily from HEXPOL Compounding (SEK20.18 billion) and HEXPOL Engineered Products (SEK1.61 billion).

Dividend Yield: 3.8%

HEXPOL offers a stable dividend yield of 3.77%, although it falls below the top 25% of Swedish dividend payers. Dividends have been consistently growing and are well-covered by both earnings (55.4% payout ratio) and cash flows (57.8% cash payout ratio). Recent earnings showed a slight decline, with Q2 sales at SEK 5.45 billion and net income at SEK 654 million, reflecting minor year-over-year decreases in financial performance.