Swisscom’s (VTX:SCMN) Upcoming Dividend Will Be Larger Than Last Year’s

Simply Wall St

Sun, February 15, 2026 at 5:12 PM GMT+9 2 min read

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The board of Swisscom AG (VTX:SCMN) has announced that it will be paying its dividend of CHF26.00 on the 31st of March, an increased payment from last year’s comparable dividend. This takes the annual payment to 3.7% of the current stock price, which unfortunately is below what the industry is paying.

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Swisscom’s Future Dividend Projections Appear Well Covered By Earnings

If it is predictable over a long period, even low dividend yields can be attractive. Based on the last payment, Swisscom’s profits didn’t cover the dividend, but the company was generating enough cash instead. Healthy cash flows are always a positive sign, especially when they quite easily cover the dividend.

Earnings per share is forecast to rise by 24.2% over the next year. Assuming the dividend continues along recent trends, our estimates say the payout ratio could reach 86% - on the higher side, but we wouldn’t necessarily say this is unsustainable.

SWX:SCMN Historic Dividend February 15th 2026

See our latest analysis for Swisscom

Swisscom Has A Solid Track Record

Even over a long history of paying dividends, the company’s distributions have been remarkably stable. Since 2016, the dividend has gone from CHF22.00 total annually to CHF26.00. This implies that the company grew its distributions at a yearly rate of about 1.7% over that duration. Slow and steady dividend growth might not sound that exciting, but dividends have been stable for ten years, which we think makes this a fairly attractive offer.

Dividend Growth May Be Hard To Achieve

Investors could be attracted to the stock based on the quality of its payment history. However, initial appearances might be deceiving. In the last five years, Swisscom’s earnings per share has shrunk at approximately 3.6% per annum. If the company is making less over time, it naturally follows that it will also have to pay out less in dividends. Earnings are forecast to grow over the next 12 months and if that happens we could still be a little bit cautious until it becomes a pattern.

In Summary

In summary, while it’s always good to see the dividend being raised, we don’t think Swisscom’s payments are rock solid. The company is generating plenty of cash, but we still think the dividend is a bit high for comfort. This company is not in the top tier of income providing stocks.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we’ve picked out 3 warning signs for Swisscom that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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