Top Swiss Dividend Stocks to Consider in July 2024

Swiss equities have recently been on the decline, influenced by general trends in European markets and uncertainty over future interest rate decisions by the Fed and the ECB. Amid these fluctuations, dividend stocks remain a source of interest for investors seeking potential stability and consistent returns in a volatile market environment.

Top 10 Dividend Stocks in Switzerland

Name	Dividend yield	Dividend Rating
Vontobel Holding (SWX:VONN)	5.57%	★★★★★★
Cembra Money Bank (SWX:CMBN)	5.19%	★★★★★★
Cantonal Bank of Vaud (SWX:BCVN)	4.54%	★★★★★★
St. Gallen Cantonal Bank (SWX:SGKN)	4.43%	★★★★★★
Novartis (SWX:NOVN)	3.36%	★★★★★☆
Roche Holding (SWX:ROG)	3.86%	★★★★★☆
Julius Bär Group (SWX:BAER)	5.08%	★★★★★☆
Holcim (SWX:HOLN)	3.57%	★★★★★☆
Basel-Landschaftsbank (SWX:BLKB)	4.74%	★★★★★☆
Helvetia Holding (SWX:HELN)	5.18%	★★★★★☆

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

Let’s take a closer look at some of our picks from the featured companies.

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

Preview: Compagnie Financière Tradition SA is a global interprofessional broker that deals in financial and non-financial products, with a market capitalization of approximately CHF 1.10 billion.

Operations: Compagnie Financière Tradition SA generates its revenue from three key geographic segments: Americas (CHF 350.89 million), Asia-Pacific (CHF 271.44 million) and Europe, Middle East and Africa (CHF 431.78 million).

Dividend yield: 4.1%

Compagnie Financière Tradition offers a stable dividend yield of 4.12%, supported by a decade of consistent growth and reliable payments. Dividends are well covered, with a payout ratio of 47.2% and a cash payout ratio of 40.8%, indicating strong earnings and cash flow support despite share price volatility over the past three months. Recent financial results show an upward trend, with revenue reaching CHF 983.3 million and net income of CHF 94.42 million for the year ending 31 December 2023.

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

Preview: EFG International AG operates in the areas of private banking, wealth management and asset management with a market capitalization of approximately CHF 4.06 billion.

Operations: EFG International AG generates revenues through various regional and functional segments, with notable contributions from Switzerland and Italy (CHF 450.20 million), the United Kingdom (CHF 177.40 million), Asia Pacific (CHF 165.30 million), Continental Europe and the Middle East (CHF 249.70 million), the Americas (CHF 133.20 million), Investment and Wealth Solutions (CHF 122.40 million) and Global Markets and Treasury (CHF 83 million).

Dividend yield: 4.1%

EFG International has a mixed dividend profile, marked by a history of volatile and unreliable dividends over the past decade. Despite this, dividends have been growing and are modestly covered by earnings with a current payout ratio of 58.5%. The company’s financial health is challenged by a high NPL ratio of 2.5% and an insufficient provision for NPLs of 5%. Recently, EFG extended its buyback plan until the end of July 2024, which could impact the future sustainability of dividends.

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

Preview: Helvetia Holding AG operates in the life and non-life insurance and reinsurance sectors in Switzerland, Germany, Austria, Spain, Italy, France and other international markets with a market capitalization of approximately CHF 6.52 billion.

Operations: Helvetia Holding AG generates revenues of CHF 1.81 billion from its life insurance business and CHF 7.09 billion from its non-life insurance business.

Dividend yield: 5.2%

Helvetia Holding AG recently proposed a dividend increase to CHF 6.3 million, an increase of almost 7%, effective 28 May 2024. Despite a net profit of CHF 283.2 million lower in 2023 than in the previous year and earnings per share down from CHF 8.03 to CHF 5.24, the company is maintaining a cash payout ratio of 36.5%, suggesting that dividends are well covered by cash flows, but not by earnings, with a high payout ratio of 120.3%. Helvetia’s dividend yield is at an attractive market-leading level in the Swiss market at over 5%, but it faces challenges related to tight profit margins and insufficient earnings coverage.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to constitute financial advice. This 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 focused, long-term analysis based on fundamental data. Please note that our analysis may not factor in the latest price-sensitive company announcements or qualitative information. Simply Wall St has no position in any of the stocks mentioned.

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