In this article, we discuss 12 Best International Dividend Stocks To Buy Now.
Dividend stocks have been grabbing investors’ attention for a while now. According to JP Morgan, over the last two decades, global dividends per share have increased at an annual rate of 5.6%, but analysts expect this to rise to 7.6% in the future, driven by historically low payout ratios. During the 2020 pandemic, many companies cut dividends, but as earnings have recovered, especially in Big Tech and AI, dividends have not kept up. With payout ratios at 25-year lows, simply returning to normal could add 2% annual growth over the next five years.
After slowing down post-COVID, global dividend growth made a surprising comeback last year, increasing 8% and adding an extra $180 billion in payouts despite ongoing economic and geopolitical challenges. According to S&P Global, this was largely driven by record dividend initiations in US tech, European banks, Japan’s auto industry, and solid growth from China. Even oil and gas companies held strong despite market volatility. Looking ahead, experts predict global dividends will hold steady at $2.3 trillion in 2025.
Regionally, developed Asia, which includes Japan, Hong Kong, Australia, South Korea, and Singapore, is looking at a 3% rise in dividends this year. Europe, on the other hand, is expected to see a 3.4% decline. In emerging markets, the trends are mixed. Asia, led by China, India, and Taiwan, is on track for a 5% increase, while dividends in the Middle East and Africa could drop by 20%, mainly because Saudi Aramco’s special dividend program ended. Latin America is also expected to see a small dip of around 4%.
When it comes to sectors, banks and energy companies remain the biggest dividend payers. Banks are expected to distribute around $380 billion globally, but after four years of rapid 20% growth, they are now down to just 2%. Banks are playing it safe, waiting to see how interest rates move. Given this, we will take a look at some of the best international dividend stocks.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology
For this article, we used the BlackRock International Dividend ETF to filter out dividend stocks listed on US exchanges but headquartered internationally. We focused on picking stocks that were most popular among hedge funds. The list below is ranked in the ascending order of Q3 2024 hedge fund sentiment, and dividend yields are mentioned as of February 11.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
12. UBS Group AG (NYSE:UBS)
Dividend Yield as of February 11: 1.00%
Number of Hedge Fund Holders: 25
Headquartered in Zurich, Switzerland, UBS Group AG (NYSE:UBS) is a global financial services company that caters to private, institutional, and corporate clients. It operates through five divisions – Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy.
UBS Group AG (NYSE:UBS) reported strong Q4 and full-year financial performance, with a net profit of $5.1 billion and an 8.7% return on CET1 capital in 2024, reflecting successful integration efforts and global business growth. The CET1 capital ratio stood at 14.3%, ensuring a strong capital position. The company also experienced revenue growth in global wealth management and investment banking. For Q4 2024, profit before tax tripled to $1.8 billion, total revenues rose 6% to $11 billion, and EPS reached $0.23.
To redistribute capital gains amongst shareholders, UBS Group AG (NYSE:UBS) plans to propose a $0.90 per share dividend, which is up 29% year-over-year. The dividend will be distributed on April 17, to shareholders on record as of April 16. The bank also proposed a share repurchase plan of up to $3 billion this year.
According to Insider Monkey’s third-quarter database, 25 hedge funds were bullish on UBS Group AG (NYSE:UBS), compared to 33 funds in the prior quarter. Pzena Investment Management is a prominent stakeholder in the company, with 30.8 million shares worth nearly $802.7 million.
11. Diageo plc (NYSE:DEO)
Dividend Yield as of February 11: 3.54%
Number of Hedge Fund Holders: 26
Diageo plc (NYSE:DEO) is a London-based global alcoholic beverage company that produces, markets, and sells spirits, beer, and non-alcoholic drinks. The company sells whiskies, vodka, gin, rum, tequila, liqueurs, and flavored malt beverages.
Diageo North America is investing $415 million in a new manufacturing and warehousing facility in Montgomery, Alabama, to solidify its supply network. Built on 360,000 square feet, the facility will increase production capacity for the company’s top beverage brands and support its North American and export operations. The project is expected to be fully operational by late 2025.
Diageo plc (NYSE:DEO)’s free cash flow rose by $125 million to $1.7 billion in the most latest quarter, mainly due to better working capital management. The company announced a $0.405 per share dividend for the half, keeping it flat from last year as a cautious move in the current market. Diageo’s sales for the six months ending in December 2024 dropped by 0.6% to $10.9 billion. A dip in sales, paired with uncertain trade conditions, led the company to withdraw its medium-term organic sales growth target of 5 to 7%.
Among the hedge funds tracked by Insider Monkey in Q3 2024, 26 funds were long Diageo plc (NYSE:DEO), compared to 31 funds in the prior quarter. William B. Gray’s Orbis Investment Management is the leading stakeholder of the company, with nearly 2 million shares worth $278 million.
10. Sanofi (NASDAQ:SNY)
Dividend Yield as of February 11: 3.91%
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is a global healthcare company headquartered in Paris, France, specializing in medical treatments for neurology, immunology, oncology, rare diseases, diabetes, and cardiovascular conditions, along with vaccines for influenza, meningitis, and travel-related diseases. It is one of the best dividend stocks to buy now.
For FY 2024, Sanofi (NASDAQ:SNY) announced total sales of €41.1 billion, indicating an 11.3% increase at constant exchange rates (CER). Dupixent generated over €13 billion and Beyfortus reached blockbuster status with €1.7 billion in its first full year. SNY’s EPS came in at €7.12, growing 4.1% at CER, outperforming guidance despite a 1.8% decline in reported terms. The company also proposed a €3.92 dividend for 2024, marking the 30th consecutive annual increase.
In 2025, Sanofi (NASDAQ:SNY) expects sales to grow by a mid-to-high single-digit percentage and business earnings to increase by around 10% before share buybacks. The company also plans to buy back €5 billion worth of shares, mainly through block trades and open market purchases, with the goal of canceling them.
Ken Fisher’s Fisher Asset Management was the largest position holder in the company among funds tracked by Insider Monkey, with a stake worth roughly $770 million. Overall, 32 hedge funds held shares of Sanofi (NASDAQ:SNY) at the end of the third quarter of 2024.
9. SAP SE (NYSE:SAP)
Dividend Yield as of February 11: 0.87%
Number of Hedge Fund Holders: 36
SAP SE (NYSE:SAP) is a global software and services provider based in Walldorf, Germany. Its main products offer finance, supply chain management, human resources, customer experience, and spend management solutions.
On February 10, Stifel raised the price target on SAP SE (NYSE:SAP) to €300 from €265, and reiterated a Buy rating on the shares. The price target upgrade reflects Stifel’s confidence in SAP’s RISE with SAP transition, which is driving cloud revenue growth. Analysts also expect EPS growth and positive earnings revisions to propel the stock higher.
Cloud revenue increased 27%, marking three straight quarters of double-digit growth for SAP SE (NYSE:SAP). Moreover, SAP made progress with AI, delivering 130 generative AI use cases in 2024. The company’s free cash flow rose 19% to €4.1 billion, exceeding its earlier target of €3.5-4 billion. Despite spending €2.5 billion on restructuring and €0.2 billion on compliance-related settlements, SAP’s strong profitability and early payments for 2025 receivables helped maintain healthy cash flow for the year.
Since going public in 1988, SAP SE (NYSE:SAP) has consistently paid dividends to its shareholders without any reductions or cancellations. It is one of the best dividend stocks to monitor for an income portfolio. For the 2023 fiscal year, shareholders approved a €2.20 per share dividend at the Annual General Meeting, reflecting a 7.3% increase from 2022. In total, €2.564 billion was distributed in dividends.
According to Insider Monkey’s third-quarter database, 36 hedge funds were bullish on SAP SE (NYSE:SAP), up from 31 funds in the earlier quarter.
8. HDFC Bank Limited (NYSE:HDB)
Dividend Yield as of February 11: 1.18%
Number of Hedge Fund Holders: 41
HDFC Bank Limited (NYSE:HDB) is an Indian banking and financial services company that operates in three segments – Treasury, Retail Banking, and Wholesale Banking. The company offers deposit accounts, loans, credit facilities, debit and credit cards, investment and insurance products, and digital banking services. HDFC Bank Limited (NYSE:HDB) has opened over 1000 branches in 2024. Consequently, cost growth increased by 7% year-over-year, but productivity improvements helped keep expenses under control.
HDFC Bank Limited (NYSE:HDB) reported consolidated net revenue of ₹652.8 billion for Q3 FY25, with a profit after tax (PAT) of ₹176.6 billion. For the nine months ending December 31, 2024, PAT was ₹519.6 billion. Earnings per share for the quarter stood at ₹23.1, and the bank paid ₹17.9 billion in dividends. It is one of the best dividend stocks to monitor for a diversified portfolio.
According to Insider Monkey’s third-quarter data, 41 hedge funds were bullish on HDFC Bank Limited (NYSE:HDB), compared to 40 funds in the last quarter. Rajiv Jain’s GQG Partners was the biggest stakeholder in the company, with 4.5 million shares valued at $282.7 million.
7. AstraZeneca PLC (NASDAQ:AZN)
Dividend Yield as of February 11: 2.09%
Number of Hedge Fund Holders: 42
The British biopharmaceutical giant, AstraZeneca PLC (NASDAQ:AZN), specializes in developing and selling prescription medicines for oncology, cardiovascular, renal, metabolism, respiratory, and rare diseases. Recently, the company has canceled its £450 million investment to expand a vaccine plant in Merseyside, citing reduced government support. The company reasoned that prolonged discussions and changes to the government’s offer influenced the move. Despite this, AstraZeneca’s Speke site will continue providing flu vaccines for UK and global patients.
In May 2024, AstraZeneca PLC (NASDAQ:AZN) communicated that it plans to launch 20 new medicines by 2030 and has already secured approval for eight, including Datroway. The company’s total revenue jumped 25% in Q4, with full-year revenue up 21%, beating its own revised forecasts. Product sales saw a solid 19% growth for the year, fueled by strong demand across different regions.
AstraZeneca PLC (NASDAQ:AZN) raised its 2024 dividend to $3.10 per share and announced plans to increase it again to $3.20 for 2025. Moreover, AZN expects total revenue to grow by a high single-digit percentage in 2025, with core EPS rising by a low double-digit percentage, supported by strong growth momentum despite anticipated challenges.
Among the hedge funds tracked by Insider Monkey, AstraZeneca PLC (NASDAQ:AZN) was found in 42 stock portfolios, compared to 49 in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder in the company, with 10.4 million shares worth $816.5 million.
6. Canadian National Railway Company (NYSE:CNI)
Dividend Yield as of February 11: 2.23%
Number of Hedge Fund Holders: 44
Canadian National Railway Company (NYSE:CNI) is a transportation and logistics company that provides rail, intermodal, trucking, and marine services, catering to industries like automotive, coal, agriculture, and consumer goods. On January 31, 2025, Stifel raised their price target on CNI to $125 from $120 while maintaining a Buy rating on the shares. The adjustment follows a decent but unremarkable Q4 earnings report. With strong profit margins of 54.63% and solid financial health, analysts see growth potential but warn that hitting the upper spectrum of the guidance may be ambitious.
Canadian National Railway Company (NYSE:CNI) generated $3.1 billion in free cash flow in 2024, down $800 million from last year due to higher capital spending and lower operating cash flow. The company repurchased over 13 million shares for more than $2.3 billion as of December 2024 under its latest buyback program. The Board approved a 5% dividend increase for 2025, marking 29 consecutive years of growth. It also authorized a new buyback program for up to 20 million shares from February 2025 to February 2026. CNI is one of the best dividend stocks to invest in.
According to Insider Monkey’s Q3 data, 44 hedge funds were long Canadian National Railway Company (NYSE:CNI), compared to 42 funds in the earlier quarter. Bill & Melinda Gates Foundation Trust is the leading stakeholder of the company, with 54.8 million shares valued at $6.4 billion.
5. Shell plc (NYSE:SHEL)
Dividend Yield as of February 11: 4.25%
Number of Hedge Fund Holders: 48
Shell plc (NYSE:SHEL), a London-based energy titan, is one of the best dividend stocks for an income portfolio. On January 24, 2025, Shell Energy North America announced that it concluded its acquisition of RISEC Holdings, adding a 609 MW gas power plant in Rhode Island to its portfolio. This deal helps secure long-term energy supply in the ISO New England market, especially as demand is expected to rise with the push for decarbonization.
Shell plc (NYSE:SHEL) delivered strong financial results in 2024, despite lower earnings in the fourth quarter. Free cash flow reached $40 billion, surpassing 2023 levels even in a weaker price environment. To reward shareholders, Shell plc (NYSE:SHEL) announced a 4% dividend increase and a $3.5 billion share buyback program. This marked the 13th straight quarter of at least $3 billion in buybacks.
On January 30, Shell declared a $0.716 per ADS quarterly dividend, up from a prior dividend of $0.688. The dividend is payable on March 24, to shareholders on record as of February 14.
Shell plc (NYSE:SHEL) is a popular energy play among Wall Street funds. In Q3 2024, 48 hedge funds were bullish on Shell, compared to 49 in the last quarter.
4. Novo Nordisk A/S (NYSE:NVO)
Dividend Yield as of February 11: 1.75%
Number of Hedge Fund Holders: 61
Founded in 1923, Novo Nordisk A/S (NYSE:NVO) is a Danish pharmaceutical company that provides insulin, obesity medications, and hormone therapies. 2024 was a strong year for Novo Nordisk A/S (NYSE:NVO), with sales climbing 25% to $40.6 billion, but the company expects growth to slow in 2025. The stock has dropped 40% since last June, as investors worry about demand for obesity drugs and mixed trial results. Analysts observe that the first half of 2024 was exciting, but things cooled down when US prescription growth slowed and some drug trials underperformed. Political uncertainty, especially with Trump’s election, has also made investors nervous.
In 2024, Novo Nordisk A/S (NYSE:NVO) raised its total dividend per share by 21.3% to DKK 11.40, which includes an interim dividend of DKK 3.50 distributed in August. This is the 29th consecutive year of dividend growth at NVO. Novo Nordisk is one of the best dividend stocks on our list. Looking ahead to 2025, the company expects capital expenditures of around DKK 65 billion but has no plans for share repurchases. In 2025, Novo Nordisk expects a free cash flow of around DKK 75 to 85 billion and sales growth of 16-24% at constant exchange rates.
According to Insider Monkey’s Q3 data, 61 hedge funds held stakes in Novo Nordisk A/S (NYSE:NVO), compared to 67 funds in Q2. Ken Fisher’s Fisher Asset Management is the biggest stakeholder in the company, with 13.3 million shares worth $1.58 billion.
3. ASML Holding N.V. (NASDAQ:ASML)
Dividend Yield as of February 11: 0.95%
Number of Hedge Fund Holders: 64
Headquartered in Veldhoven, Netherlands, ASML Holding N.V. (NASDAQ:ASML) manufactures semiconductor equipment for chipmakers. It specializes in lithography systems, including cutting-edge extreme ultraviolet and deep ultraviolet technology, which are crucial for producing smaller, more powerful chips. The Dutch tech giant ranks 3rd on our list of the best dividend stocks for an income portfolio.
ASML Holding N.V. (NASDAQ:ASML) saw a major spike in demand for its advanced chipmaking tools in the fourth quarter, with net bookings surging 169% from the previous quarter to €7.09 billion. This largely exceeded analyst expectations. The Dutch chipmaker reported €9.26 billion in sales and €2.69 billion in profit, both slightly beating forecasts. Despite concerns over AI-related spending, ASML reaffirmed its 2025 revenue outlook of €30-35 billion and ended 2024 with a massive €36 billion order backlog.
ASML had a solid Q4, generating €8.839 billion in free cash flow, much higher than the previous quarter. In 2024, the company returned €3 billion to shareholders through dividends and buybacks. ASML plans to pay a total dividend of €6.4 per share for 2024, including a third interim dividend of €1.52 per share on February 19, 2025, and a final proposed dividend of €1.84 per share.
According to Insider Monkey’s third-quarter database, 64 hedge funds were bullish on ASML Holding N.V. (NASDAQ:ASML), down from 81 funds in the prior quarter. Fisher Asset Management was the most prominent stakeholder of the company, with a position worth $2.65 billion.
2. Teck Resources Limited (NYSE:TECK)
Dividend Yield as of February 11: 0.81%
Number of Hedge Fund Holders: 68
Teck Resources Limited (NYSE:TECK) is a Vancouver-based company involved in the exploration, acquisition, and production of copper, zinc, steelmaking coal, and blended bitumen, along with lead, silver, gold, molybdenum, specialty metals, chemicals, and fertilizers. On January 21, 2025, Jefferies analyst Christopher LaFemina maintained a Buy rating on Teck Resources Limited (NYSE:TECK) with a C$70 price target. The analyst commended Teck’s strong financial health and its success in meeting Q4 production targets, as well as achieving full design throughput rates at the QB2 copper project by year-end.
In 2024, Teck Resources Limited (NYSE:TECK) completely transformed its business, focusing solely on energy transition metals like copper and zinc. It sold its steelmaking coal division for $8.6 billion, using the funds for shareholder payouts, debt reduction, taxes, and investments in copper projects. The company bought back $1.25 billion in shares and paid off $1.6 billion in debt. Looking ahead, Teck is ramping up its copper production, aiming to hit 800,000 tonnes per year by the end of the decade, with up to $3.9 billion in planned investments. The company last paid a C$0.125 per share quarterly dividend on December 31, 2024. TECK is one of the best dividend stocks for a diversified portfolio.
According to Insider Monkey’s third-quarter database, 68 hedge funds were long Teck Resources Limited (NYSE:TECK), compared to 69 funds in the last quarter. D E Shaw is the largest stakeholder of the company, with nearly 5 million shares worth $261 million.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Dividend Yield as of February 11: 1.34%
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), the world’s largest chip manufacturer, ranks first on our list of the best dividend stocks. Experts warn that Trump’s plan to impose a 100% tariff on Taiwanese semiconductors could backfire, as Taiwan dominates advanced chip production. Companies like Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) have strong pricing power and would likely pass the extra costs onto US businesses and consumers, potentially fueling inflation. Analysts also argue that instead of bringing chip manufacturing to the US, the move could push Taiwanese firms to set up factories elsewhere, triggering a global trade war and straining US-Taiwan relations.
In the fourth quarter of 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) saw a 14.3% year-over-year rise in consolidated revenue, reaching NT$868.46 billion, with diluted earnings per share at NT$14.45. Since initiating cash dividends in 2004, TSM has maintained a steady payout without any reductions. In 2024, the company distributed $11.3 billion in dividends. The company last paid a $0.6165 per share quarterly dividend on January 9, 2025.
In the third quarter of 2024, 158 hedge funds tracked by Insider Monkey were bullish on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), up from 156 funds in the last quarter.
Overall, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks first on our list of the best international dividend 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.
READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
