10 Best Annual Dividend Stocks To Buy Now

3. BASF SE (XETRA:BAS.DE)

Dividend Yield as of February 6: 4.99%

Number of Hedge Fund Holders: N/A

BASF SE (XETRA:BAS.DE) is a German global chemical company that operates across six key segments – Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. BASF produces chemicals, advanced materials, additives, coatings, and battery materials for different industries. It also supplies ingredients for food, personal care, and pharmaceuticals, along with agricultural solutions like seeds, pesticides, and digital farming tools. It is one of the best dividend stocks to consider for an investment portfolio. BASF SE (XETRA:BAS.DE) stock has climbed 11.5% year-to-date as of February 7.

In September 2024, BASF SE (XETRA:BAS.DE) updated its financial targets for 2025-2028 and updated its dividend policy and corporate strategy. The company aims to distribute at least €12 billion to shareholders through dividends and share buybacks. From 2025-2028, dividends will total €8 billion or €2.25 per share annually, with €4 billion in share buybacks starting by 2027 at the latest. Additionally, a divestment process for its decorative paints business in Brazil is underway, and BASF expects €2 billion in cash inflows in 2024 from its exit from the oil and gas business.

BASF SE (XETRA:BAS.DE)’s 2024 financial results were a bit mixed. BASF’s 2024 sales are expected to be €65.3 billion, slightly lower than €68.9 billion in 2023, due to declining sales prices despite a slight volume increase. Cash flow from operations is forecasted at €6.9 billion, down from €8.1 billion. Free cash flow is supposed to clock in at €0.7 billion, outperforming analyst expectations but much lower than €2.7 billion in 2023.