Dividend Power Score
A single, comprehensive score designed to measure the true strength of a company’s dividend.
This score combines three essential pillars of dividend quality:
Consistency – Measures how reliable the dividend has been over time, focusing on payment history, stability, and the absence of cuts or suspensions.
Payability – Assesses the company’s financial ability to sustain its dividend, taking into account cash flow, earnings coverage, balance sheet strength, and overall financial health.
Growth – Evaluates the long-term growth of both the dividend and the company’s share price, highlighting businesses that consistently increase payouts while creating shareholder value.
Higher scores identify companies that have historically delivered dependable income alongside sustained dividend growth and long-term capital appreciation.
Company Overview
AB SKF (publ) is a global industrial manufacturing company specializing in bearings, seals, lubrication systems, and related engineering solutions. The company operates primarily within the industrial manufacturing, automotive, and industrial services sectors, supplying components and systems that reduce friction, improve efficiency, and extend equipment life. SKF’s core revenue drivers are rolling bearings, plain bearings, bearing units, seals, lubrication systems, and condition monitoring solutions sold to both original equipment manufacturers (OEMs) and aftermarket customers.
Founded in 1907 in Gothenburg, Sweden, SKF evolved from a regional bearing producer into one of the world’s largest bearing manufacturers through continuous innovation, international expansion, and early globalization. The company holds a strong competitive position due to its scale, vertically integrated manufacturing, long-standing customer relationships, and significant investment in research and development. SKF is publicly listed in Sweden and its ADRs trade in the U.S. under the ticker SKFRY.
Business Operations
SKF operates through two primary business segments: Industrial and Automotive. The Industrial segment serves customers in sectors such as industrial machinery, energy, railways, aerospace, mining, and heavy industries, generating revenue through product sales and lifecycle services. The Automotive segment supplies bearings, seals, and related systems to global vehicle manufacturers and aftermarket channels, with exposure to passenger cars, commercial vehicles, and electric vehicles.
The company controls advanced manufacturing facilities, engineering centers, and testing laboratories worldwide, supported by proprietary materials science, tribology, and digital condition monitoring technologies. SKF also delivers services such as predictive maintenance and reliability engineering. Key subsidiaries include SKF AB as the parent operating entity and numerous wholly owned regional subsidiaries supporting localized manufacturing and distribution.
Strategic Position & Investments
SKF’s strategy emphasizes operational excellence, sustainability, and profitable growth through innovation. The company is investing in electrification, renewable energy applications (such as wind power), and digital condition monitoring to support customers’ efficiency and decarbonization goals. Growth initiatives include expanding service-based offerings, strengthening the aftermarket business, and increasing exposure to high-growth industrial segments.
SKF has undertaken portfolio optimization in recent years, including acquisitions that enhance its service capabilities and divestments of non-core activities. Notable investments focus on digital platforms, predictive maintenance technologies, and advanced materials. The company maintains a strong commitment to research and development, positioning itself as a technology leader in friction management and rotating equipment performance.
Geographic Footprint
SKF operates in more than 130 countries, with major operations across Europe, North America, Asia-Pacific, Latin America, and Africa. Its global headquarters are located in Gothenburg, Sweden, while manufacturing plants, engineering centers, and distribution hubs are strategically positioned near key customer markets.
The company has a particularly strong presence in Europe and Asia, including significant operations in China and India, as well as established positions in the United States and other North American markets. SKF’s global footprint enables localized production, supply chain resilience, and close customer collaboration across industrial and automotive sectors.
Leadership & Governance
SKF is governed by a board of directors elected by shareholders and managed by an executive leadership team focused on long-term value creation, technology leadership, and sustainability. The leadership philosophy emphasizes decentralized responsibility, strong corporate governance, and alignment with environmental and social objectives integrated into business strategy.
Key executives include:
- Rickard Gustafson – President and Chief Executive Officer
- Niclas Rosenlew – Chief Financial Officer
- Thomas Fröst – President, Industrial Business Area
- Lars Einarsson – President, Automotive Business Area
- Erik Magnusson – Chief Technology Officer
These executives collectively oversee SKF’s global operations, strategic investments, and innovation agenda while maintaining compliance with public market governance standards.