Sweden offers you excellent investing opportunities, and there are many reasons why you should consider investing in Swedish dividend stocks. Sweden is a mature market and is home to a lot of large and well-known companies. It is also home to many excellent dividend stocks that will pay you high dividends year after year. The Swedish stock market is owned by NASDAQ which makes it very easy to buy and sell Swedish shares regardless of where you live. Most stockbrokers in the world allow you to trade NASDAQ traded stock. You can most likely log in to your broker account and buy and sell Swedish shares right now. The fees associated with buying and selling Swedish stock is usually very low since the shares are traded within the NASDAQ trading system.
Why dividend stock
Dividend stocks is an excellent way to invest long term. A portfolio of dividend stock allows you to earn money without ever having to sell your stock. You can keep your shares and receive a yearly return of about 5% from the dividends. The dividends are paid to your account automatically and can be used to buy anything. The best thing to do with the dividend payments is to buy more shares, but you can choose to buy whatever you want with the money.
A dividend portfolio is the best way to save for retirement. A well-managed portfolio of dividend stock can let you live off the dividend payments. You do not need to sell any stock to fund your life in retirement, and you do not have to worry about running out of money. If you have a portfolio where you are forced to sell shares to fund your lifestyle, then your portfolio will shrink each year, and you will eventually run out of money. That is not the case if you live off dividends. It does not matter if you live to be a 150. Your dividend portfolio will still pay you more and more money in dividend payments each year, and the value of the stock will keep going up each year. Your net worth will keep growing after your retired.
Why invest in Sweden
I have already given you some reasons to invest in Sweden. It is a mature economy with good dividend stocks that can be traded for a low fee. But you can find all of this in the US. Why would you want to invest in a foreign country when you could find good stocks at home. The answer is diversification. Diversification reduces risk and makes your portfolio more resistant to a turn down in the economy. If the US economy tanks then the Swedish economy might still be going strong and allow you to keep getting large dividend payments. The more diversified a portfolio is the lower risk that something unexpected is going to bankrupt you. Your goal should be to diversify your portfolio as much as possible. This includes investing in a lot of different industries and a lot of different countries. Sweden is one country that offers good companies that you can buy shares in to start diversifying your portfolio. Sweden is an excellent choice for investing abroad, but it should not be the only country that you invests in outside the US. Strive to invest in as many countries as possible.
5 Good Swedish dividend stock
Below I am going to recommend some good Swedish dividend stock.
Hufvudstaden is a Swedish real estate company that has raised its dividend 16 years in a row. It is one of the best dividend stocks on the Swedish stock market. It does not pay the highest dividend, but it pays a very reliable dividend that you can rely on year after year. The yearly dividend is currently just above 2.5%.
2. Nordea Bank Abp
Nordea Bank is the biggest bank in Sweden and one of the biggest in Scandinavia. They are present on a large number of European markets and have an excellent capitalization. The bank is known for paying high dividends. The bank is a relatively reliable dividend payer but is sensitive to weak market conditions. Nordea will give you a dividend of close to 9%.
3. Kindred Group
Kindred Group is a Swedish gaming operator. They run a number of well known international internet gaming platforms. One of the biggest is operating in most of Europe and offers bingo, card games and similar. The company is fast growing and profitable. They pay a 7.67% dividend. Do not invest more than a small percentage of your portfolio in a single provider as the regulatory situation can dramatically change the value of gaming operators.
NetEntertainment is a sizeable Swedish game developer. They develop games used by a very large number of online gaming platforms. They have developed many of the most popular games on the market and cooperates with many large rights holders to develop licensed games. NetEntertainment is profitable and relatively immune to changing market conditions due to their large size and global exposure. Game developers such are NetEntertainment are safer to invest in then operators since they have exposure towards a significant number of online gaming platforms and will not be affected by the fortunes of any single of those.
NetEntertainment pays a 6.14% dividend.
5. Byggmax Group
Byggmax Group is a Swedish retailer specializing in building materials, garden supplies, and home design. They operate large retail stores similar to Home Depot in the United States. The company has grown quickly and is very profitable. Byggmax pays 7.7% in dividend.