In this article, we discuss 10 Best Annual Dividend Stocks To Buy Now.
In 2025, dividends in MSCI Europe are expected to reach a record high. According to Allianz Global Investors, these firms are likely to increase dividend payouts by 4% year-over-year to €459 billion, up from €440 billion in 2024. In 2026, MSCI Europe dividends could catapult even higher to €496 billion. In Germany alone, payouts are projected to rise from €57 billion in 2024 to €63 billion in 2025, and possibly hit €70 billion in 2026. Allianz Global expects the Tech and Healthcare sectors to offer the highest dividend increases in 2025, while the Energy sector could likely create some weakness. The Financials sector will remain the biggest dividend contributor in Europe. Dividend yields are staying ahead of long-term German government bond yields as well, with the MSCI Europe dividend yield expected to be 3.5% this year.
Over the last 40 years, about 39% of MSCI Europe’s total annualized return resulted from dividends. Comparatively, dividend payouts made up 22% of total returns in MSCI North America and just over 41% in MSCI Pacific.
Jenny Harrington, CNBC Halftime Report’s go-to expert on dividends, observed that the broader market’s dividends have grown about 5.7% in the last 50-60 years, which means that dividend income is outpacing inflation. She also noted that dividends are a tax-advantaged income stream, which is a huge plus. Harrington also commented that dividend investors are more likely to hold their portfolios rather than selling in a panic when markets go down. They are reluctant to give up their income streams and risk wasting years of effort, which helps keep dividend portfolios steady and resilient, even during market selloffs.
Harrington also told investors that some companies may not have strong growth potential but generate high free cash flow, allowing them to pay dividends. However, those seeking high-growth stocks should carefully balance their portfolios. Harrington advised investors to explore opportunities beyond the broader market, as the index is heavily dominated by its top 10 stocks. She suggested that looking at other companies, including dividend stocks, could offer better value and growth potential. Given this, we will now take a look at some of the best annual dividend stocks.
Photo by Vitaly Taranov on Unsplash
Our Methodology
For this article, we manually researched annual reports and company websites to see which stocks pay dividends annually. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth, and being financially stable to steer clear of yield traps. The list below is ranked in the ascending order of dividend yield as of February 6.
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10. SAP SE (NYSE:SAP)
Dividend Yield as of February 6: 0.87%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is a provider of applications and technology for enterprise resource planning, HR management, and spend management solutions. Founded in 1972, the company is headquartered in Walldorf, Germany. For 2025, it raised the operating profit guidance from €10.2 billion to €10.3-€10.6 billion. SAP CEO Dominik Asam believes that the company remains on track to outperform in 2025 too, given that it already over-delivered in 2024, achieving the targets set for 2025 too. In the past 12 months, the stock has surged nearly 65%.
In Q4 2024, SAP SE (NYSE:SAP) total cloud backlog increased 40% year-over-year, equalling €63 billion. The company’s cloud revenue grew 27%, resulting in a double-digit revenue increase for three straight quarters. The company went the extra mile on its commitments to customers this year, providing 130 use cases for generative AI in 2024. Free cash flow in 2024 exceeded the prior guidance of €3.5 billion to €4 billion, increasing 19% year-over-year to €4.1 billion. SAP absorbed €2.5 billion in restructuring payouts and €0.2 billion in compliance-related settlements. However, the company also received a few hundred million in receivables due in 2025, and combined with robust profitability, it led to strong free cash flow for the year.
On May 15, 2024, SAP SE (NYSE:SAP) announced an annual dividend of $2.385 per share dividend. The dividend was paid on May 28, 2024. It is one of the best dividend stocks to monitor.
According to Insider Monkey’s third-quarter data, 36 hedge funds tracked by Insider Monkey held stakes in SAP SE (NYSE:SAP), up from 31 funds in the prior quarter. Billionaire Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 4.7 million shares worth over $1 billion.
9. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF)
Dividend Yield as of February 6: 1.93%
Number of Hedge Fund Holders: N/A
LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) is a French luxury goods company that operates worldwide. The company deals in wines and spirits, fashion and leather goods, fragrances, cosmetics, luxury hotels, watches, and jewelry brands. Some of the brands under LVMH include Hennessy, Dom Pérignon, Louis Vuitton, Christian Dior, Fendi, Fenty Beauty, Tiffany & Co., Bulgari, and TAG Heuer. As of February 6, the stock has surged around 10% year-to-date.
In 2024, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF)’s revenue came in at €84.7 billion, indicating 1% organic growth despite economic and geopolitical challenges. LVMH’s profit from recurring operations was €19.6 billion for the year, equalling an operating margin of 23.1%. The company’s free cash flow increased 29% year-over-year to €10.5 billion. LVMH witnessed steady growth in Europe and the US, while Japan experienced double-digit revenue growth, supported by a weak currency. LVMH also played a major role in the Paris 2024 Olympics, supported the reopening of Notre Dame Cathedral, and backed more than 910 nonprofits, impacting over 1.9 million people.
On April 17, 2025, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) plans to propose a dividend of €13 per share. An interim payment of €5.50 per share was distributed on December 4, 2024, with the remaining €7.50 per share scheduled for payment on April 28, 2025. It is one of the best dividend stocks with an annual payout to watch.
8. Deutsche Bank Aktiengesellschaft (NYSE:DB)
Dividend Yield as of February 6: 2.48%
Number of Hedge Fund Holders: 12
Deutsche Bank Aktiengesellschaft (NYSE:DB) is a German global financial institution that specializes in corporate and investment banking, private banking, and asset management services. On January 21, 2025, Deutsche Bank China and Yonyou Network Technology signed a strategic MOU in Beijing to develop a global financial services model centered on Global Treasury Management. Combining Yonyou’s treasury system with Deutsche Bank’s financial platform, the firms aim to introduce innovative financial solutions and fintech advancements to improve cross-border finance and support Chinese enterprises’ global expansion.
In 2024, Deutsche Bank Aktiengesellschaft (NYSE:DB)’s revenue came in at €30.1 billion, with assets under management exceeding €1 trillion for the first time. The net profit was €3.5 billion, which is 28% lower than last year. This drop happened because, in 2023, DB enjoyed a one-time tax benefit of €1.0 billion.
So far, €2.1 billion has been allocated for capital distributions to shareholders in 2025. This includes a proposed dividend of approximately €1.3 billion for the year 2024, translating to €0.68 per share, which represents a 50% increase from the €0.45 per share paid for 2023. Additionally, €750 million has been approved for share repurchases, contributing to a 13.8% CET1 ratio at the end of 2024. Deutsche Bank Aktiengesellschaft (NYSE:DB) is one of the best dividend stocks to buy.
Among the hedge funds tracked by Insider Monkey, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest stakeholder of the company as of Q3 2024, with 40.7 million shares worth over $704 million. Overall, 12 hedge funds were bullish on Deutsche Bank Aktiengesellschaft (NYSE:DB).
7. Siemens Aktiengesellschaft (XETRA:SIE.DE)
Dividend Yield as of February 6: 2.51%
Number of Hedge Fund Holders: N/A
Siemens Aktiengesellschaft (XETRA:SIE.DE), headquartered in Munich, Germany, is a global technology company that operates through five main segments – Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services. The company provides automation systems, industrial software, AI-driven solutions for factories and production lines, energy-efficient buildings, renewable energy solutions, rail transport and infrastructure, medical imaging devices, diagnostic tools, and investment, leasing, and financing solutions.
On February 5, Siemens Mobility received its first order for Vectron locomotives with battery modules, allowing them to operate short distances without overhead power lines. This eco-friendly innovation reduces emissions and improves logistics efficiency. JeMyn AG, affiliated with Widmer Rail Services, is the client who ordered the Vectron locomotives with battery modules, with delivery set for 2027. The battery module enables efficient shunting operations without additional locomotives, resulting in cost efficiency and sustainability.
2024 was a strong financial year for Siemens Aktiengesellschaft (XETRA:SIE.DE), supported by high demand for electrification, transportation, and industrial software. Although automation faced challenges in 2024, Siemens delivered record profits for the year. The company also acquired Altair for $10 billion in October 2024, with the intention of strengthening its position in industrial software and AI. Additionally, Siemens completed the sale of Innomotics, securing a €2.0 billion gain to be reflected in fiscal 2025.
For fiscal 2024, Siemens Aktiengesellschaft (XETRA:SIE.DE) reported €9.5 billion in free cash flow. The company aims to follow a disciplined capital allocation strategy, focusing on targeted investments for profitable growth. Siemens raised its dividend to €5.20 per share from €4.70 in 2023, offering a 2.5% dividend yield. It is one of the best dividend stocks, ranking 7th on our list.
6. Roche Holding AG (OTC:RHHBY)
Dividend Yield as of February 6: 3.33%
Number of Hedge Fund Holders: N/A
Roche Holding AG (OTC:RHHBY) was established in 1896 and is headquartered in Basel, Switzerland. The company develops treatments for cancer, autoimmune diseases, neurological disorders, respiratory conditions, and more. The company also offers in-vitro diagnostic tests, medical instruments, and digital health solutions for diseases like cancer, diabetes, and COVID-19.
On February 7, Roche’s phase III REGENCY trial found that Gazyva/Gazyvaro significantly improved renal response in lupus nephritis patients, with 46.4% achieving complete renal response (CRR) vs. 33.1% on standard therapy. The drug also reduced inflammation markers, potentially preserving kidney function. Gazyva/Gazyvaro is the first anti-CD20 monoclonal antibody in a phase III study to show CRR benefits, as published in the New England Journal of Medicine.
In 2024, Roche Holding AG (OTC:RHHBY)’s sales grew by 7% to CHF 60.5 billion. There was solid momentum across the Pharmaceuticals and Diagnostics divisions, which made up for the decline in COVID-related sales of CHF 1.1 billion. Roche’s core operating profit surged 14%, driven by higher sales, better margins, and cost efficiency. On top of that, operating free cash flow surged 34% to CHF 20.1 billion, giving Roche a strong financial position for future investments. Looking ahead, Roche expects mid-single-digit sales growth in 2025 and aims to increase its dividend for the 38th consecutive year to CHF 9.70. It is one of the best dividend stocks to consider for an income portfolio.
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.
4. Nestlé S.A. (OTC:NSRGY)
Dividend Yield as of February 6: 3.83%
Number of Hedge Fund Holders: N/A
Ranking 4th on our list of the best dividend stocks with annual payouts is Nestlé S.A. (OTC:NSRGY). Nestlé S.A. (OTC:NSRGY) is a household name across the world, and it is very common to come across Nestlé products at home or work – be it baby food, bottled water, cereals, chocolate, coffee, frozen food, dairy products, or pet food.
On December 23, 2024, Nestlé S.A. (OTC:NSRGY) concluded its share buyback program, which began in January 2022. Over these years, the company repurchased 187.4 million shares for CHF 20 billion at an average price of CHF 106.74 per share. Several batches of these shares were canceled at annual meetings in 2022, 2023, and 2024, reducing Nestlé’s total share capital to CHF 262 million. The remaining 43.5 million shares will be considered for cancellation at the 2025 annual general meeting.
Nestlé reported CHF 67.1 billion in sales for the first nine months of 2024, a 2.4% decline from the previous year, mainly due to currency fluctuations. However, organic growth was 2.0%, driven by a 0.5% real internal growth (RIG) and 1.6% pricing adjustments after earlier price hikes. Coffee was Nestlé S.A. (OTC:NSRGY)’s top-performing category, with mid-single-digit growth from Nescafé, Starbucks, and Nespresso. Nestlé also updated its 2024 guidance and now expects 2% organic growth, a 17% profit margin, and flat earnings per share in constant currency. Nestlé S.A. (OTC:NSRGY) pays dividends once a year, making its last payout on April 24, 2024.
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.
2. Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE)
Dividend Yield as of February 6: 7.86%
Number of Hedge Fund Holders: N/A
Bayerische Motoren Werke Aktiengesellschaft (XETRA:BMW.DE) manufactures and sells BMW, MINI, and Rolls-Royce vehicles, along with spare parts, accessories, and mobility services. It is one of the most popular automobile companies worldwide. It is one of the best dividend stocks to consider. The company issued its last annual dividend in May 2024.
BMW Group kept up its momentum in 2024, delivering 426,594 fully electric vehicles (BEVs), which indicates a 13.5% increase compared to 2023. Both BMW and MINI brands saw double-digit BEV growth, with BMW up 11.6% (368,523 units) and MINI surging 24.3% (56,181 units). Even Rolls-Royce made waves, delivering 1,890 BEVs and recording a staggering 479.6% jump. Outside of China, BMW managed to grow sales across all vehicle types and regions.
That said, the second half of the year wasn’t smooth sailing. Delivery stops due to Integrated Brake System (IBS) issues and weak demand in China forced BMW to adjust its full-year sales target. In the end, the company delivered 2,450,804 vehicles in 2024, with electrified models making up 24.2% of total sales (593,215 units) and fully electric vehicles accounting for 17.4%. Looking ahead to 2025, BMW is optimistic about continued BEV growth, supported by strong demand in Europe and an expanding lineup of electric models.
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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