Swiss Dividend Stocks to Consider in July 2024

Despite an overall positive trading day, the Swiss market closed slightly lower last Friday, reflecting investors’ caution as they processed regional inflation data and U.S. economic reports. The benchmark SMI index saw modest fluctuations but ultimately recorded a slight decline amid mixed performance of major stocks. In such an environment, dividend stocks may be particularly attractive due to their potential to provide stable returns amid market volatility.

Top 10 dividend stocks in Switzerland

Name	Dividend yield	Dividend Rating
Vontobel Holding (SWX:VONN)	5.58%	★★★★★★
Cembra Money Bank (SWX:CMBN)	5.22%	★★★★★★
Tradition Financial Company (SWX:CFT)	4.24%	★★★★★★
Cantonal Bank of Vaud (SWX:BCVN)	4.51%	★★★★★★
St. Gallen Cantonal Bank (SWX:SGKN)	4.39%	★★★★★★
Novartis (SWX:NOVN)	3.35%	★★★★★☆
Roche Holding (SWX:ROG)	3.85%	★★★★★☆
Julius Bär Group (SWX:BAER)	5.18%	★★★★★☆
Basel-Landschaftsbank (SWX:BLKB)	4.74%	★★★★★☆
Helvetia Holding (SWX:HELN)	5.19%	★★★★★☆

Click here to see the full list of 26 stocks in our Best Dividend Stocks Analysis tool.

We will review a selection of our screening results.

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

Preview: Novartis AG is a Switzerland-based global healthcare company engaged in the research, development, manufacturing and marketing of a wide range of healthcare products, with a market capitalization of approximately CHF 196.23 billion.

Operations: Novartis AG generates $47.73 billion in revenue from its Innovative Medicines segment.

Dividend yield: 3.4%

Novartis, a notable player in the Swiss dividend stock space, offers a stable dividend yield of 3.35%, supported by a payout ratio of 88.7% and cash flow coverage of 60.7%. While its dividend yield is below the top quartile of Swiss stocks, its consistent payouts over the past decade underscore its reliability. Recent announcements include promising trial results for Fabhalta in rare kidney diseases, which are likely to strengthen future earnings stability and support ongoing dividends despite a trading price 56.2% below estimated fair value in Q1 2024.

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

Preview: Phoenix Mecano AG is a global manufacturer and seller of components for industrial customers, with a market capitalization of approximately CHF 455.56 million.

Operations: Phoenix Mecano’s revenue mainly comes from three segments: Enclosure Systems (231.16 million euros), Industrial Components (223.58 million euros) and Dewertokin Technology Group (335.80 million euros) .

Dividend yield: 6.1%

Phoenix Mecano AG recently increased its ordinary dividend to CHF 18.00 and announced a special dividend of CHF 12.00, resulting in a total gross payout of CHF 30.00 per share effective May 30, 2024. Despite these increases, the company’s dividends have been volatile and unreliable over the past decade, with significant annual fluctuations of over 20%. However, earnings and cash flow currently support these dividends, with a payout ratio of 68.4% and a cash payout ratio of 58.1%. The company’s financial performance has improved over the past year, with earnings up 14.1%, but future growth is projected modestly at around 1.71% per year.

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

Preview: Roche Holding AG operates in the pharmaceutical and diagnostics sectors in several regions of the world, with a market capitalization of approximately CHF 201.50 billion.

Operations: Roche Holding AG generates CHF 44.43 billion in revenue from its Roche Pharmaceuticals segment and CHF 7.20 billion in revenue from its Chugai Pharmaceuticals segment, as well as CHF 14.16 billion in revenue from its Diagnostics division.

Dividend yield: 3.8%

Roche Holding’s dividend attractiveness is moderate with a yield of 3.85%, slightly below the top quartile of the Swiss market. Over the past decade, dividends have demonstrated stability and growth, supported by a payout ratio of 66.7% from both earnings and cash flow. Although trading at 64.1% below its estimated fair value and well compared to its industry peers, Roche has a high level of debt that could impact the future sustainability of dividends. Recent approvals for OCREVUS in new formats highlight ongoing innovation, but are not directly linked to immediate financial metrics influencing dividends.

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This Simply Wall St article 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 constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative elements. Simply Wall St has no position in any of the stocks mentioned.

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