Dagens industri is now conducting its annual update of the so-called Estelle Portfolio. The background is that the newspaper created a portfolio with ten major Swedish companies when Princess Estelle was born, and it will be managed until her 18th birthday. She turns 14 today.
The Estelle Portfolio has delivered a total return of 458 percent since its inception, outperforming the benchmark SIX Return Index, which has increased by 397 percent. This past year was strong, with a return of 17.6 percent compared to the index's 8.7 percent gain.
All ten stocks in the portfolio provided a positive total return over the past year. Four of the companies in the portfolio are proposing special dividends, and seven are raising their regular dividends, which are positive signals.
"This year, we are reinvesting dividends in some of the portfolio companies, but we are not making any changes to our holdings. There is no reason to make changes just for the sake of it when the portfolio is well-diversified and contains quality holdings. The fewer changes, the better," write the newspaper's analysts.
The largest holding in the portfolio by value is Volvo, followed by Astra Zeneca, SEB, Alfa Laval, Atlas Copco, Handelsbanken, Assa Abloy, Tele2, Lundbergs, and a smaller stake in Volvo Cars.
AB Volvo is the leading European truck maker and No. 3 worldwide. Net sales break down by activity as follows:
- sales of trucks (68.4%): 219,377 vehicles sold in 2024 (names Volvo, Renault, Eicher and Mack);
- sales of construction equipment (16.8%): excavators, loaders, backhoes, hydraulic shovels, graders, dump trucks, etc.;
- financial services (5.1%);
- bus and chassis sales (4.7%): world's No. 2 largest manufacturer;
- sales of parts, control systems, and marine and industrial motors (3.8%): for commerce and cruise ships and for industrial applications (irrigation units, lifting trucks, electrical generators, etc.);
- other (1.2%).
Net sales are distributed geographically as follows: Europe (41.1%), North America (30.8%), Asia (11.2%), South America (10.7%), Africa and Oceania (6.2%).
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