Dagens industri conducted its ninth annual update of the newspaper's dividend portfolio on Thursday, a tradition that began in 2016. The portfolio is composed of stable dividend growers, with several companies consistently increasing their payouts for many years--some have, in fact, never reduced their dividends.
As in previous years, most companies in the portfolio have delivered stable dividends and dividend increases over the past year. Of the ten companies, only Tele2 reduced its payout. However, Tele2 remains in the portfolio, as the newspaper assesses the likelihood of future dividend increases--and even special dividends--as strong.
This year, Dagens industri is making one change to the dividend portfolio: engineering firm Alfa Laval is being added, while real estate company Cibus is being removed.
While Cibus is indeed a notable dividend payer with a high yield, nearly all of its profit is distributed as dividends, leaving little capital for growth.
Alfa Laval, on the other hand, is a highly reliable dividend payer, driven by steadily rising profits. Although the dividend was suspended in the spring of 2020, in every other year since its stock market listing in 2002, the company has either increased or maintained its dividend.
The updated dividend portfolio now consists of Handelsbanken, Tele2, Wihlborgs, Axfood, Alfa Laval, AAK, Atlas Copco, Astra Zeneca, Assa Abloy, and ABB. The newspaper jokingly refers to the portfolio as the "A-Team," since seven out of the ten companies' names start with the letter A. The expected yield for the portfolio is 3.7 percent.
