Market Minute: Swiss dividend stocks – the place to be

Having a dividend strategy once again paid off in the Swiss equity market last year. The SPI Select Dividend 20 Index generated an overall return of almost 20%, marking a further extension of its outperformance versus the broad Swiss Performance Index over the last ten years. Prospects are also positive for 2026. Distributions will likely go on rising and reach a new record level. In addition, at 2.8% the average dividend yield for the Swiss equity market remains at an attractive level – particularly in the current low interest-rate environment. We recommend reinvesting income in dividend stocks, firstly to benefit from the compound interest effect and secondly to profit from their minimal volatility and stabilising effect in a portfolio context. Many Swiss dividend stocks offer an attractive combination of yield level, dependability and growth. Our favourite is Zurich Insurance, which has now joined our top picks list. But if the focus is on a sharp increase in dividend yield, then Helvetia Baloise, Swisscom and Stadler deserve a mention. Furthermore, Sunrise, Clariant and Holcim are the favourites when it comes to tax-exempt distributions and high dividend yields.

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