Distribution Party on the Stock Exchange - "Must Be a Record"

It's being loaded up for a record-breaking payout party on the stock exchange this spring. The payouts are increasing by 11 percent to a total of approximately 326 billion kronor next year, according to a fresh prognosis from the major bank SEB. It has to be a record. It can't be anything else, says stock strategist Esbjörn Lundevall.

» Published: December 16 2024

Distribution Party on the Stock Exchange - "Must Be a Record"
Photo: Jakob Åkersten Brodén/TT

Astra Zeneca tops the list, according to SEB's prognosis. The Swedish-British pharmaceutical company is expected to distribute 4.8 billion dollars (equivalent to 53 billion kronor).

Nordea, the Swedish-Finnish major bank, takes second place with 3.3 billion euros (equivalent to 38 billion). The all-Swedish truck manufacturer AB Volvo is not far behind, at 36 billion kronor.

Highest Direct Yield from the Banks

Shareholders normally receive their dividend from the previous year's operations in the spring or early summer, in connection with each company's annual general meeting.

SEB's dividend prognosis includes all companies listed on the Stockholm Stock Exchange that the major bank monitors. This also includes Astra Zeneca and the Swedish-Swiss ABB, whose shares are largely traded in London and Zurich, respectively.

In terms of direct yield, i.e., what percentage of the share's value is expected to be distributed, the Nordic major banks top the list at 8.3 percent. They are expected to distribute a total of almost 160 billion kronor.

However, this amount also includes, in addition to the money distributed by the three Swedish major banks – Handelsbanken, SEB, and Swedbank – also the dividends from Norwegian DNB, Danish Danske Bank, and Finnish Nordea.

In some of the banks, share buybacks – another way to distribute money to shareholders – are also added on top of the actual dividend.

Volvo Cars Does Not Distribute

In percentage terms, the direct yield is even higher among Nordic shipping companies and oil companies. The shipping companies' direct yield is 13.6 percent or 97 billion kronor. For the oil companies, the direct yield is 10 percent according to SEB's prognosis, which would give shareholders 107 billion kronor.

On average among listed companies – if one also includes all growth companies and other companies that do not distribute anything at all – the direct yield is expected to be 2.7 percent.

It's not just growth companies that don't distribute.

Volvo Cars does not distribute money because they need to use the cash flow to invest in new factories and models, as it is a major transformation in the industry, says Lundevall.

Another company that normally does not distribute is Stenbeck's power company Kinnevik. They usually make one-time distributions when they have sold a company in their portfolio.

Tags

TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Trump Signals Openness to Tariff
1 MIN READ

Trump Signals Openness to Tariff Negotiations for Economic Boost

EU Prepares Trade Countermeasures as
3 MIN READ

EU Prepares Trade Countermeasures as US Tariffs Loom

WTO Warns Trump's Tariffs Could
1 MIN READ

WTO Warns Trump's Tariffs Could Cut Global Trade by 1 Percent

Canada Imposes 25-Percent Tariffs on
1 MIN READ

Canada Imposes 25-Percent Tariffs on US Cars in Trade Dispute

Macron Urges EU Firms to
1 MIN READ

Macron Urges EU Firms to Rethink US Investments Over Tariffs

Volvo's Shift to Electric Cars
2 MIN READ

Volvo's Shift to Electric Cars Faces Scrutiny as Diesel Demand Persists

Stellantis Halts Canada and Mexico
1 MIN READ

Stellantis Halts Canada and Mexico Production Over US Tariffs

Fitch Downgrades China's Credit Rating
1 MIN READ

Fitch Downgrades China's Credit Rating Citing Economic Concerns

Wind Farm Cable Approval Granted
2 MIN READ

Wind Farm Cable Approval Granted but Vattenfall Faces Cost Hurdle

US Stock Market Tumbles as
3 MIN READ

US Stock Market Tumbles as Tariffs Hit Tech Giants

US Tariffs Pose Global Economic
2 MIN READ

US Tariffs Pose Global Economic Challenge, Says Swedish Central Bank Chief

Ikano Bank Faces Police Report
1 MIN READ

Ikano Bank Faces Police Report in Denmark Over Misleading Marketing

EU Trade Chief Sefcovic to
1 MIN READ

EU Trade Chief Sefcovic to Discuss US Tariffs on Friday

Volvo Cars Boosts US Production
3 MIN READ

Volvo Cars Boosts US Production in Response to Trump's Tariffs

US Imposes Tariffs on Remote
1 MIN READ

US Imposes Tariffs on Remote Penguin Islands in Australian Territory

Saab Secures Major Order for
1 MIN READ

Saab Secures Major Order for Combat Vehicle Systems from BAE Systems

Trump Tariffs Threaten to Hike
1 MIN READ

Trump Tariffs Threaten to Hike Coffee Prices in the US

Trump's New Tariffs Spark Global
2 MIN READ

Trump's New Tariffs Spark Global Criticism and Economic Concerns

Kent Concerts Spark Hotel Market
1 MIN READ

Kent Concerts Spark Hotel Market Boost in Stockholm

US Boosts Norwegian Salmon Imports
1 MIN READ

US Boosts Norwegian Salmon Imports Before Tariff Decision

IT Sector Sees Reduced Work
1 MIN READ

IT Sector Sees Reduced Work Hours and Pay Increase in New Agreement

Service Sector Slows as Index
1 MIN READ

Service Sector Slows as Index Drops Below 50 in Sweden

Kristersson Urges Action Over US
2 MIN READ

Kristersson Urges Action Over US Tariffs, Calls for EU-US Trade Talks

Economist Urges Swedish Savers to
2 MIN READ

Economist Urges Swedish Savers to Hold Steady Despite Tariff Impact

Stockholm Stocks Plunge 3.4 Percent
2 MIN READ

Stockholm Stocks Plunge 3.4 Percent After Trump's Tariff News

Stock Market Faces Uncertainty After
2 MIN READ

Stock Market Faces Uncertainty After Trump's Tariff Announcement

Food Prices Stabilize as Supermarkets
3 MIN READ

Food Prices Stabilize as Supermarkets Compete for Shoppers

EU Prepares Countermeasures as US
2 MIN READ

EU Prepares Countermeasures as US Tariffs Threaten Global Economy

Gold Prices Soar to Record
1 MIN READ

Gold Prices Soar to Record Highs Following Trump's Tariff News

Colombia Plans to Acquire Swedish
1 MIN READ

Colombia Plans to Acquire Swedish Gripen Fighter Jets

Tokyo Stocks Drop Sharply Following
1 MIN READ

Tokyo Stocks Drop Sharply Following US Tariff Announcement

Global Leaders Rally Against Trump's
3 MIN READ

Global Leaders Rally Against Trump's Tariffs to Avert Trade War

US Finance Minister Urges Nations:
1 MIN READ

US Finance Minister Urges Nations: Hold Off on Retaliating to Tariffs

Trump's Tariffs Higher Than Expected,
2 MIN READ

Trump's Tariffs Higher Than Expected, Experts Warn of Lingering Uncertainty

Sweden Ready to Tackle Trump's
2 MIN READ

Sweden Ready to Tackle Trump's EU Tariffs, Says PM Kristersson

Trump's Tariffs Spark Global Economic
2 MIN READ

Trump's Tariffs Spark Global Economic Uncertainty, Experts Warn

Trump Announces 20 Percent Tariffs
3 MIN READ

Trump Announces 20 Percent Tariffs on EU Goods

APM Terminals Acquires Key Railway
1 MIN READ

APM Terminals Acquires Key Railway by Panama Canal

Volvo CEO Calls Trump's Tariffs
2 MIN READ

Volvo CEO Calls Trump's Tariffs a Messy Challenge for Swedish Industry

Amazon and AppLovin Eye TikTok's
2 MIN READ

Amazon and AppLovin Eye TikTok's US Operations for Acquisition