10 Best Annual Dividend Stocks To Buy Now

5. Novartis AG (NYSE:NVS)

Dividend Yield as of February 6: 3.57%

Number of Hedge Fund Holders: 24

Novartis AG (NYSE:NVS) is a Swiss global healthcare giant specializing in the research, development, manufacturing, and marketing of prescription medicines. It focuses on key therapeutic areas, including cardiovascular, renal, metabolic, oncology, ophthalmology, immunology, neuroscience, and hematology. Novartis AG (NYSE:NVS) stock has climbed 10% year-to-date as of February 7, 2025.

On December 10, 2024, Novartis AG (NYSE:NVS) shared new results from the Phase III NATALEE trial, showing that Kisqali (ribociclib) combined with endocrine therapy reduces the risk of breast cancer spreading by 28.5% compared to endocrine therapy alone. This benefit was seen across all patient groups, including those without lymph node involvement. Experts emphasize that breast cancer recurrence remains a real concern, and adding Kisqali to standard treatment can help reduce this risk.

On January 31, 2025, Novartis AG (NYSE:NVS) reported its Q4 2024 earnings. Adjusted net income rose 26% year-over-year to $3.93 billion, outperforming the Wall Street estimates of $3.64 billion. The company’s sales rose 16% on a constant currency basis, with its brand portfolio expanding by 38%, excluding Entresto, which faces a patent loss in mid-2025. Novartis expects over 5% annual sales growth through 2029, with long-term growth expected in the mid-single digits.

The fourth quarter also saw record-high free cash flow, up 24% to $16.3 billion, attributed to Novartis’ shift to a pure pharmaceutical focus. The company plans $5.4 billion in share buybacks for 2025 and announced a 6% dividend increase to CHF 3.50 per share, marking its 28th consecutive annual dividend hike. It is one of the best dividend stocks to invest in.

According to Insider Monkey’s Q3 2024 data, 24 hedge funds were long Novartis AG (NYSE:NVS), with Jim Simons’ Renaissance Technologies holding the biggest share, comprising 2.3 million shares valued at $264.6 million.