10 Best Annual Dividend Stocks To Buy Now

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1. Mercedes-Benz Group AG (XETRA:MBG.DE)

Dividend Yield as of February 6: 9.36%

Number of Hedge Fund Holders: N/A

Mercedes-Benz Group AG (XETRA:MBG.DE) ranks 1st on our list of the best annual dividend stocks, based on its impressive 9.36% yield as of February 6. Mercedes-Benz Group AG (XETRA:MBG.DE) is a German global automotive company that operates through three segments – Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility.

In the first nine months of 2024, Mercedes-Benz Group AG (XETRA:MBG.DE) brought in €107.1 billion in revenue, slightly below last year’s €112.4 billion. Q3 revenue also dipped, mainly because of lower unit sales, an unfavorable product and market mix, weaker pricing, and currency fluctuations. On February 21, 2024, the company announced a new share buyback policy, aiming to use excess free cash flow, after small M&A deals and a 40% dividend payout, to buy back and cancel shares. The latest buyback program kicked off in May 2024, running alongside a €4 billion program that started in March 2023 and wrapped up by August 1, 2024. The new program is expected to finish by early 2025, with any future buybacks requiring fresh approvals.

On May 8, 2024, Mercedes-Benz Group AG (XETRA:MBG.DE) approved a dividend of €5.30 per share for 2023, up from €5.20 the previous year. That adds up to a total payout of €5.5 billion in 2023, just a bit shy of the €5.6 billion they handed out the year before.

Overall, Mercedes-Benz Group AG (XETRA:MBG.DE) ranks first on our list of the best annual dividend stocks. While we acknowledge the potential of MBG.DE to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MBG.DE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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