13 Best Foreign Dividend Stocks To Buy According to Analysts

1. Ambev S.A. (NYSE:ABEV)

Dividend Yield as of February 12: 5.83%

Number of Hedge Fund Holders: 19

Average Upside Potential: 76.76%

Ambev S.A. (NYSE:ABEV) is based in São Paulo, Brazil. It is a beverage company that produces and distributes beer, soft drinks, and other beverages across Brazil, Latin America, the Caribbean, and Canada. On January 9, 2025, Bernstein maintained an Outperform rating on the stock but trimmed its price target from $3.08 to $2.57 due to a weaker Brazilian Real. The firm still views Ambev as undervalued, citing its strong fundamentals, including a $29.4 billion market cap, 12.8 P/E ratio, and 51% gross margin. Bernstein remains optimistic about Ambev’s market performance.

Over the past five years, Ambev S.A. (NYSE:ABEV) generated BRL 68 billion in free cash flow and returned BRL 43 billion to shareholders. In the third quarter of 2024, cash flow from operations increased nearly 30%, despite tax challenges in Brazil. Strong performances in Brazil and Central America continued, while Latin America South and Canada showed some improvement. The board also approved a BRL 2 billion share buyback program in Q3 2024.

On December 16, 2024, Ambev S.A. (NYSE:ABEV) declared a $0.0414 per share dividend. The dividend was paid on January 1, 2025, to shareholders on record as of December 23.

According to Insider Monkey’s third-quarter database, 19 hedge funds were bullish on Ambev S.A. (NYSE:ABEV), compared to 18 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management was the leading stakeholder of the company, with 342.2 million shares worth nearly $835 million.

Overall, Ambev S.A. (NYSE:ABEV) ranks first on our list of the best foreign dividend stocks according to analysts. While we acknowledge the potential of ABEV 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 ABEV 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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