In this article, we discuss the 10 Best Foreign Stocks With Dividends For Passive Income.
In August, S&P Global Market Intelligence reported that US dividends are set to grow around 5.1% by the close of 2024. In the United States, the energy sector dominated dividend contributions, with pharmaceuticals, financial services, and banks trailing behind. Looking beyond the US, we see similar growth trends in international markets. For example, S&P expects a 3.9% year-over-year recovery in dividends in Canada, resulting in $74.4 billion in dividend payouts for 2024. Interest rate cuts by the Bank of Canada will aid this rebound in dividends. Two-thirds of the overall Canadian dividend distributions are attributed to the financial and energy sectors.
By year-end 2024, European dividends are projected to grow 4.2% year-over-year to $531.5 billion, with the banking and insurance sectors leading the charge and counteracting the weakness in the European transportation, materials, and energy industries. In the Asia-Pacific region, dividend growth is also projected to be strong. Developed markets in the Asia-Pacific – Australia, Japan, Hong Kong SAR, New Zealand, South Korea, and Singapore – are expected to grow their dividends to $370.5 billion by the end of 2024, reflecting a 5.8% year-over-year increase. According to S&P Global, 2024 is the year that Japan will overtake Hong Kong SAR in terms of the highest dividend contributions in the developed Asia-Pacific market, with an expected growth rate of over 10% for the year.
Turning back to Canada, Ryan Bushell, president and portfolio manager at Newhaven Asset Management, joined BNN Bloomberg on February 4 and discussed the Canadian stock market outlook. He commented that the current hostility from the US should be a wake-up call for Canadian policymakers, noting that it is impractical to isolate the US but Canada should have alternative trading partners in case political tensions influence economic decisions. Bushell mentioned that having export options other than oil is crucial and that Canada should look into exporting natural gas and liquefied petroleum gases as well. In terms of investment strategies, the portfolio manager emphasized that sustainable and stable companies make for excellent long-term investments, regardless of who occupies the White House. This includes critical infrastructure companies, which cater to people’s needs rather than wants. He went on to recommend his top stock picks, which were companies with steady dividend policies, high yields, and 40-60% of their revenues coming from the US, to navigate the messy tariffs. Bushnell prefers Canadian energy stocks since these companies are seeking to export to more countries, which will result in higher gains.
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Our Methodology
For this article, we used the Finviz stock screener to filter out dividend stocks listed on US exchanges but headquartered internationally. 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 Q3 2024 hedge fund sentiment, and dividend yields are mentioned as of February 3.
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10. TotalEnergies SE (NYSE:TTE)
Dividend Yield as of February 3: 5.73%
Number of Hedge Fund Holders: 17
TotalEnergies SE (NYSE:TTE) is a French energy company operating worldwide, with its product portfolio focused on the production and sale of oil, biofuels, renewables, green gases, and electricity. TotalEnergies SE (NYSE:TTE)’s five primary business segments are Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services.
On January 28, 2025, TotalEnergies SE (NYSE:TTE) and the semiconductor manufacturer STMicroelectronics N.V. announced a 15-year contract where the former will supply 1.5 TWh of renewable electricity to STMicroelectronics’ locations in France. TotalEnergies will use wind and solar energy to provide green electricity to STM, helping the latter become carbon neutral by 2027.
In Q3 2024, TotalEnergies SE (NYSE:TTE) had strong financials, raking in $6.8 billion in cash flow from operations. Exploration & Production remained resilient, pulling $4.3 billion in cash flow, with projects like the Anchor oil site in the US and the Fenix gas project in Argentina leading the segment. Medium-term projects in Asia will support future cash flows on the LNG side, as per the company’s Q3 earnings call. On the back of its solid financial performance, TotalEnergies SE (NYSE:TTE) raised its third interim dividend by 7% to €0.79 per share and approved $2 billion in share buybacks for Q4, aiming for total repurchases of $8 billion in 2024.
According to Insider Monkey’s third-quarter database, 17 hedge funds were bullish on TotalEnergies SE (NYSE:TTE), compared to 18 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management is the biggest stakeholder in the company, with 22.7 million shares worth nearly $1.5 billion.
9. British American Tobacco p.l.c. (NYSE:BTI)
Dividend Yield as of February 3: 7.57%
Number of Hedge Fund Holders: 24
British American Tobacco p.l.c. (NYSE:BTI) is a London-based tobacco giant with a portfolio of traditional cigarettes, modern oral products like snus and moist snuff, and alternative options such as vapor and heated nicotine products. To strengthen its commitment to reduced-risk products and a Smokeless World, the company announced a £200 million Fund II through its corporate venture capital arm, Btomorrow Ventures (BTV) on December 18, 2024. This fund follows a successful Fund I in 2020 with 28 early-stage investments. Both funds focus on wellbeing and sustainability, with investments supporting British American Tobacco p.l.c. (NYSE:BTI)’s efforts in digital innovation, sustainability, science, and technology.
British American Tobacco p.l.c. (NYSE:BTI) boasts a consistent streak of increasing dividends since 2018, which places it on our list of the best foreign stocks. On December 19, the company announced a quarterly dividend of $0.743 per share, to be paid on February 6, 2025, to shareholders on record as of December 20.
BTI’s H2 performance was driven by robust organic volume and financial results in Combustibles, primarily supported by US commercial activity, inventory pressures alleviating, and firm pricing. While BTI’s market value share declined due to the geographical mix and US adjustments, its global volume increased by 20 bps. British American Tobacco p.l.c. (NYSE:BTI) maintained a market-leading share at 40.3% in AME and APMEA, along with strong performance in Europe. The company expects to reach the high end of its leverage target and achieve more than 90% of cash flow conversion in 2024, in addition to focusing on resource optimization and improvement in operations.
As of the end of Q3 2024, British American Tobacco p.l.c. (NYSE:BTI) appeared in 24 hedge fund portfolios. The largest stakeholder was Rajiv Jain’s GQG Partners, holding 13.70 million shares valued at $501.3 million.
8. Novartis AG (NYSE:NVS)
Dividend Yield as of February 3: 3.57%
Number of Hedge Fund Holders: 24
Novartis AG (NYSE:NVS) ranks 8th on our list of the best foreign stocks for passive income. It is a Swiss global healthcare company that develops, manufactures, and sells prescription medicines. The company’s therapeutic areas include heart, kidney, and metabolic health, immunology, neuroscience, cancer, eye care, and blood disorders.
Novartis announced positive results of its Phase III STEER study on December 30, 2024, which refers to the clinical efficiency and safety of OAV101 IT. OAV101 IT is a gene therapy meant for spinal muscular atrophy (SMA) type 2, in patients aged two to under eighteen. The results showed significant improvement in motor function compared to a sham control. Novartis AG (NYSE:NVS) plans to forward these results to the FDA in 2025 for approval.
On January 31, 2025, the Swiss healthcare giant reported its Q4 2024 earnings. After adjustments for special items, the net income climbed 26% to $3.93 billion, which beat Wall Street expectations of $3.64 billion. According to the Q4 earnings call, Novartis AG (NYSE:NVS)’s sales grew 16% on a constant currency basis during the quarter. Excluding the heart failure drug Entresto, which will lose its patent in mid-2025, the Novartis brand portfolio grew about 38%. This led the company to offer a 5% plus sales guidance until 2029, as well as a long-term growth forecast in the mid-single digits.
In the fourth quarter, Novartis also experienced a record-high free cash flow, which soared 24% to $16.3 billion. NVS attributes its stellar cash flow to its transformation into a pure pharmaceutical play. The company is set on sharing its success with shareholders and is on track to execute share buybacks of $5.4 billion in 2025. Novartis AG (NYSE:NVS) also declared an increase of 6% in its per-share dividend, which now stands at CHF 3.50. This marks the 28th consecutive yearly dividend hike by Novartis.
At the end of the third quarter, 24 Wall Street funds held shares of Novartis AG (NYSE:NVS), with the largest stakeholder being Jim Simons’ Renaissance Technologies, owning 2.3 million shares valued at $264.6 million.
7. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of February 3: 6.21%
Number of Hedge Fund Holders: 26
Enbridge Inc. (NYSE:ENB) is a Canadian leading energy infrastructure company that specializes in transporting oil and gas, providing natural gas utilities, managing renewable energy assets, and offering commodity marketing. In January 2025, Alberta’s government entered a partnership with Enbridge Inc. (NYSE:ENB) to expand the provincial pipeline capacity, to boost oil and gas production. Instead of funding this project with tax dollars, the expansion will be financed by the revenue from oil and gas companies paid to the province.
Enbridge Inc. (NYSE:ENB) has reliable cash flows, minimum commodity price exposure, and strong investment-grade credit ratings, which allows it to continuously grow dividends. In the coming years, the company foresees 7% to 9% EBITDA growth, supported by utility contributions, new assets, and tuck-in M&As. Enbridge is a dividend aristocrat, and it accounts for 10% of TSX-60 dividend payouts. The company reserves $8-9 billion for dividends in its annual investment capacity every year.
On December 3, Enbridge Inc. (NYSE:ENB) announced a 3% higher quarterly dividend of C$0.9425 per share, up from C$0.9150. It will be paid on March 1, 2025, to shareholders on record as of February 14.
Rajiv Jain’s GQG Partners held the largest stake in Enbridge Inc. (NYSE:ENB), with shares valued at nearly $3 billion. As of Q3 2024, 26 Wall Street funds had long positions in ENB.
6. Sanofi (NASDAQ:SNY)
Dividend Yield as of February 3: 3.91%
Number of Hedge Fund Holders: 32
Headquartered in Paris, France, Sanofi (NASDAQ:SNY) is a global healthcare company providing therapeutic solutions for diabetes, cardiovascular diseases, rare diseases, oncology, and immunology, alongside established prescription medicines. In January this year, the company shared that it has partnered with Alloy Therapeutics to create a trailblazing central nervous system drug, deploying Alloy’s AntiClastic Antisense platform. This $427 million deal aims to develop a technology meant to cross the blood-brain barrier and tackle RNA-level targets effectively.
In 2024, Sanofi (NASDAQ:SNY) worked hard to become primarily a biopharma company, which included selling a dominant stake in Opella, a major company in the over-the-counter and vitamins, minerals, and supplements market. SNY also reported robust double-digit sales growth and successful product launches.
Sanofi (NASDAQ:SNY) disclosed a free cash flow of €6 billion in 2024, which was brought down by slashed prices of Lantus in H1 in the US, eliminating receivables, and unfavorable exchange rate impact. The company expects cash flow to rebound in 2025 and 2026. In Q2 2025, Sanofi will also receive billions of euros once the Opella transaction goes through. In 2025, SNY’s share repurchases will reach €5 billion and it will pay €3.92 per share dividend for 2024. Sanofi is a dividend aristocrat, with 30 consecutive years of dividend hikes under its belt, making it one of the best foreign stocks for an income portfolio.
Ken Fisher’s Fisher Asset Management is the leading stakeholder of the company, with 13.35 million shares worth roughly $770 million. Overall, 32 hedge funds were bullish on Sanofi (NASDAQ:SNY) at the end of the third quarter of 2024.
5. Chubb Limited (NYSE:CB)
Dividend Yield as of February 3: 1.34%
Number of Hedge Fund Holders: 51
Chubb Limited (NYSE:CB), headquartered in Zurich, Switzerland, is a provider of insurance and reinsurance products globally. The company’s offerings include commercial property and casualty insurance, personal insurance for high-net-worth clients, agricultural coverage, and specialty insurance for industries like marine, aviation, and energy. It ranks 5th on our list of the best foreign stocks for passive income.
The fourth quarter of 2024 and the entire year overall was one of the best in terms of financials in Chubb Limited’s (NYSE:CB) history. The company reported an operating income of $2.5 billion, and its global P&C premium revenue rose 6.7% in Q4. Life insurance premiums also increased by 8.5% on a constant currency basis. Q4 free cash flow amounted to $4.2 billion, and for the full year 2024, Chubb recorded a historic $15.9 billion in cash flow.
During the fourth quarter, Chubb Limited (NYSE:CB) returned $1.1 billion to shareholders, including share buybacks worth $725 million and $367 million in dividends. For the full year, capital returned to shareholders was $3.5 billion, with $2 billion in share repurchases and $1.5 billion in dividends. This represents around 38% of the full-year core operating earnings.
Warren Buffett’s Berkshire Hathaway is the largest stakeholder of Chubb Limited (NYSE:CB), with over 27 million shares valued at nearly $8 billion. Overall, 51 hedge funds were bullish on the company, up from 46 funds in the last quarter.
4. Medtronic plc (NYSE:MDT)
Dividend Yield as of February 3: 3.20%
Number of Hedge Fund Holders: 60
Medtronic plc (NYSE:MDT) is a manufacturer and seller of medical devices for healthcare systems, doctors, and patients worldwide. The company is focused on Cardiovascular, Neuroscience, and Medical Surgical device portfolios. It currently has over 190 active clinical trials, and more than 43,000 active patent matters, and it has allocated around $2.7 billion to R&D.
In the fourth quarter of 2024, Medtronic plc (NYSE:MDT) reported revenue growth of 5%, which was 50 basis points above the company’s guidance. The earnings per share of $1.26 also exceeded the guidance, albeit slightly. The company’s robust financials were supported by double-digit growth in diabetes, high single-digit growth in neuroscience, and mid-single-digit growth in cardiovascular. MDT continues to prioritize dividends and share repurchases, as well as tuck in M&As. The company paid a $0.70 per share quarterly dividend on January 10. Medtronic plc (NYSE:MDT) is on its way to becoming a dividend king, having raised its dividends for 47 consecutive years.
On January 13, 2025, Medtronic plc (NYSE:MDT) announced that it had met the EU Medical Device Regulation standards and received the CE Mark approval in the EU and the UK for two deep brain stimulation devices for Parkinson’s patients. Medtronic is the market leader in deep brain stimulation (DBS) innovation, and the company is committed to improving neurological care.
Insider Monkey’s Q3 data shows that Medtronic plc (NYSE:MDT) was part of 60 hedge fund portfolios, compared to 52 in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the leading stakeholder of the company, with 9.7 million shares valued at nearly $879 million.
3. Linde plc (NASDAQ:LIN)
Dividend Yield as of February 3: 1.25%
Number of Hedge Fund Holders: 63
Linde plc (NASDAQ:LIN), a UK-based industrial gas company, ranks 3rd on our list of the best foreign stocks for an income portfolio. The company operates worldwide, offering a variety of gases including oxygen, nitrogen, argon, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene.
In August 2024, Linde plc (NASDAQ:LIN) entered a long-term agreement with Dow’s Fort Saskatchewan Path2Zero Project to provide clean hydrogen. Per the agreement, Linde will spend over $2 billion to construct and operate an Alberta-based clean hydrogen and atmospheric gas site. This will be one of the largest global industrial facilities and is expected to be completed in 2028.
During Q3 2024, North America remained a positive contributor in Linde plc’s (NASDAQ:LIN) portfolio, accounting for 40% of the company’s global sales. However, EMEA and parts of APAC (mainly China), were impacted by geopolitical tensions and economic turbulence. The company’s operating cash came in at $2.7 billion in Q3, which was 8% higher than the same quarter last year and 42% more than in Q2 2024. The company expects similar operating cash flow in Q4. Linde injected capital worth $3.4 billion into its business while giving $5.1 billion back to shareholders. LIN aims to maintain a single A credit rating and raise dividends annually, with 2024 being the 31st consecutive year that the company increased its payouts.
Insider Monkey’s third-quarter database shows that 63 Wall Street funds held long positions in Linde plc (NASDAQ:LIN), the same as the prior quarter.
2. Eaton Corporation plc (NYSE:ETN)
Dividend Yield as of February 3: 1.15%
Number of Hedge Fund Holders: 90
Eaton Corporation plc (NYSE:ETN) is based in Dublin, Ireland, and it operates as a power management company globally. The company focuses on power distribution, industrial components, hydraulic, fuel, and control systems for aircraft, transmissions, clutches, powertrain solutions, and electric vehicle components.
On January 27, investment advisory Jefferies maintained a Buy rating on Eaton Corporation plc (NYSE:ETN) but cut the price target to $390 from $440, right before the company announced its fourth-quarter results. Jefferies forecasted a double-digit earnings growth for ETN, noting that data centers would be a key catalyst for the firm. However, the investment firm warned of stock volatility given Eaton Corporation plc (NYSE:ETN)’s exposure to the tech sector.
In Q4 2024, Eaton Corporation plc (NYSE:ETN) reported a 4% year-over-year increase in earnings per share, which came in at $2.45. In 2025, the company expects earnings per share to be between $10.60 and $11 for the full year. The operating cash flow and free cash flow in Q4 2024 also jumped 23% and 27%, coming in at $1.6 billion and $1.3 billion, respectively. Sales for the year 2024 also rose 7% compared to 2023, clocking in at $24.9 billion. The company expects to repurchase between $2 billion and $2.4 billion of outstanding shares, while also focusing on strategic mergers and acquisitions. Eaton has shelled out dividends on its stock every year since 1923. It last paid a $0.94 per share quarterly dividend on November 22, 2024.
Insider Monkey tracks hedge fund movements, and Q3 data suggests that Eaton Corporation plc (NYSE:ETN) stock was held by 90 funds, compared to 93 in the prior quarter. Billionaire Philippe Laffont’s Coatue Management is the leading shareholder in the company, with 4.6 million shares worth $1.5 billion.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Dividend Yield as of February 3: 1.34%
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) tops our list of the best foreign stocks for dividend investors. TSM is the largest chipmaker in the world. This semiconductor giant remains unaffected by President Trump’s tariff threats, with Taiwan’s economy ministry noting the interdependence between the US tech industries and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), calling it a “win-win business model”.
In Q4 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported that the consolidated revenue of NT$868.46 billion increased 14.3% year-over-year, net income of NT$374.68 billion rose 15.2% compared to the prior year quarter, and diluted earnings per share came in at NT$14.45. TSM commenced cash dividends in 2004, and it has never engaged in dividend cuts over the years. In 2024, the company forked over US$11.3 billion in dividends.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Wall Street favorite. In Q3 2024, 158 hedge funds reported owning stakes in TSM, compared to 156 funds in Q2. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with a position worth nearly $5 billion.
Overall, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks first on our list of the best foreign stocks. While we acknowledge the potential of TSM 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 TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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