In this article, we discuss 13 Best Foreign Dividend Stocks To Buy According to Analysts.
Dividends have historically been a key driver of investor returns, contributing 85% of the broader market’s total return since 1960. In Q3 2024, global dividends hit a record $431.1 billion, despite a drop in special one-off dividends. Underlying dividend growth remains strong at 6.4% for 2024.
Some markets saw major milestones. According to a Janus Henderson report, China, India, and Singapore hit record-high dividends, while the US got a boost from Big Tech firms, which started paying dividends for the first time. In fact, 96% of US companies either increased their payouts or kept them steady. Financials and tech were the biggest growth drivers, while mining and transport lagged behind.
India stood out in a big way, and its dividends surged 27.4% to a record $16.2 billion in Q3. Nearly every company posted double-digit increases, and a whopping 97% of Indian companies in the Janus Henderson index have raised or maintained dividends over the last two years, well above the global average. Japan and Canada also continued their upward trend in the third quarter, with a 6.1% and 6.5% increase in dividends, respectively. On the other hand, Europe’s dividend growth slowed a bit to 3.9%, and the UK saw a 7% drop in dividends, mainly because a few commodity giants slashed payouts to manage debt and weak profits.
The Asia-Pacific region was a mixed bag. Taiwan, Hong Kong, and Australia saw dividend declines in Q3, while Singapore and South Korea posted steady gains. Meanwhile, Brazil’s dividends plunged 42% in Q3, but since Brazilian companies have irregular payout patterns, the drop is not as dramatic as it seems. Elsewhere in emerging markets, Saudi Arabia and Thailand were among the strongest performers in the third quarter. Despite some regional setbacks, the overall outlook for dividends remains positive, with financials and tech leading the charge globally.
For years, international stocks have taken a backseat to the dominance of major US tech companies, but that trend could be shifting. A combination of global factors is making foreign equities more attractive to investors, with the main reason being the recent decline of the US dollar against the euro and other major currencies since last October. Given this, we will take at some of the best foreign dividend stocks.
Photo by Annie Spratt on Unsplash
Our Methodology
For this article, we used the Finviz stock screener to filter out foreign dividend stocks. Next, we manually searched for the average upside potential of each stock and selected 13 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of February 12. We have also mentioned the dividend yields and hedge fund sentiment as of Q3 2024.
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13. Novo Nordisk A/S (NYSE:NVO)
Dividend Yield as of February 12: 1.75%
Number of Hedge Fund Holders: 61
Average Upside Potential: 19.15%
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based pharmaceutical company specializing in diabetes, obesity, and rare disease treatments. On February 12, Morgan Stanley began coverage of the Ozempic-maker, assigning the stock an Equal Weight rating with a price target of DKK 700. Morgan Stanley sees huge potential in the company’s obesity market, which could exceed $150 billion over time, but warns of challenges like slow adoption and pricing pressures.
Novo Nordisk A/S (NYSE:NVO) had a remarkable performance last year, with sales increasing 25% to $40.6 billion, but growth is expected to slow in 2025. The stock has dropped 40% since June as investors worry about obesity drug demand, mixed trial results, and political uncertainty. However, on a positive note, the company raised its dividend by 21.3% in 2024 to DKK 11.40, achieving 29 straight years of increases. For 2025, Novo expects sales growth of 16-24%, DKK 75-85 billion in free cash flow, and DKK 65 billion in capital spending, but no share repurchases are planned. It is one of the best dividend stocks for an income portfolio.
According to Insider Monkey’s Q3 database, 61 hedge funds were long Novo Nordisk A/S (NYSE:NVO), down from 67 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder in the company, with 13.3 million shares valued at $1.58 billion.
12. Teck Resources Limited (NYSE:TECK)
Dividend Yield as of February 12: 0.81%
Number of Hedge Fund Holders: 68
Average Upside Potential: 22.22%
Teck Resources Limited (NYSE:TECK) ranks 12th on our list of the best dividend stocks according to analysts, with an average upside potential of 22.2% as of February 12. TECK is a Canadian mining company focused on exploring, developing, and producing natural resources. The company has made a bold move toward energy transition metals, selling off its coal division for $8.6 billion. It is a strategic business transformation. The proceeds are being used to reward shareholders, pay down debt, and fuel major copper investments, positioning the company for significant long-term growth. Teck plans to reach 800,000 tonnes of copper production per year by 2030.
Citi analyst Alexander Hacking says 2025 will be a big year for Teck Resources Limited (NYSE:TECK), with the success of its QB2 project being a major factor. While recent production looked promising, Citi maintains a Neutral rating on the stock as of January 25, due to a weak short-term copper outlook. The analyst trimmed his 2025 EBITDA forecast for the company by 31% to $3.5 billion and lowered his price target on TECK from $74 to $68. He sees potential in the company’s strong balance sheet and growth projects but warns about issues with execution and the risk related to its dual-class share structure.
On November 14, 2024, Teck Resources Limited (NYSE:TECK) announced a C$0.125 per share quarterly dividend. The dividend was distributed on December 31 to shareholders on record as of December 13.
According to Insider Monkey’s third-quarter database, 68 hedge funds held stakes in Teck Resources Limited (NYSE:TECK), compared to 69 in the last quarter. D E Shaw is the largest stakeholder of the company, with around 5 million shares worth $261 million.
11. Yum China Holdings, Inc. (NYSE:YUMC)
Dividend Yield as of February 12: 1.41%
Number of Hedge Fund Holders: 30
Average Upside Potential: 22.31%
Yum China Holdings, Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China under brands like KFC, Pizza Hut, and Taco Bell. Founded in 1987, the company is headquartered in Shanghai, China. On February 3, JPMorgan analyst Kevin Yin maintained an Overweight rating on Yum China Holdings, Inc. (NYSE:YUMC) but trimmed the price target from $60 to $59, citing strong financial health. Yin noted that despite a projected 1.6% decline in same-store sales growth for Q4 2024, the company is expected to report its eighth consecutive quarter of store traffic growth.
In 2024, the company returned $1.5 billion to shareholders, including $248 million in dividends and $1.24 billion in share buybacks, reducing its total shares outstanding by over 31 million. The company generated $714 million in free cash flow and ended 2024 with $2.8 billion in net cash. Given this strong financial standing, Yum China Holdings, Inc. (NYSE:YUMC) is increasing its quarterly dividend by 50% to $0.24 per share, bringing its payout ratio above 40% of its 2024 diluted EPS. It is one of the best dividend stocks to consider for a diversified portfolio.
According to Insider Monkey’s third-quarter database, Yum China Holdings, Inc. (NYSE:YUMC) was part of 30 hedge fund portfolios, compared to 24 in the last quarter. GuardCap Asset Management is the biggest stakeholder in the company, with nearly 12.9 million shares valued at $580.7 million.
10. ICICI Bank Limited (NYSE:IBN)
Dividend Yield as of February 12: 0.85%
Number of Hedge Fund Holders: 32
Average Upside Potential: 22.56%
ICICI Bank Limited (NYSE:IBN) stands 10th on our list of the best dividend stocks. The company is one of India’s leading financial institutions, providing banking and financial services to retail and corporate customers locally and internationally. ICICI Bank and the Commonwealth Bank of Australia teamed up in December 2024 to make banking easier for businesses and individuals moving between India and Australia. Their partnership focuses on helping companies expand, supporting trade with banking services, assisting migrants with their financial needs, and streamlining cross-border payments with customer-friendly solutions.
For Q3 FY24, ICICI Bank Limited (NYSE:IBN) reported that profit before tax (excluding treasury) was up 23.4% year-over-year to INR 135.51 billion, and profit after tax rose 23.6% year-over-year to INR 102.72 billion. The core operating profit grew 10.3% year-over-year to INR 146.01 billion, while total deposits increased 18.7% year-over-year. Term deposits saw an even bigger growth, surging 31.2% year-over-year. Dividend income from subsidiaries and associates reached INR 6.5 billion, up from INR 5.16 billion last year, driven by higher payouts from ICICI Securities, ICICI Prudential Asset Management, and ICICI Securities Primary Dealership.
According to Insider Monkey’s third-quarter data, 32 hedge funds were bullish on ICICI Bank Limited (NYSE:IBN), compared to 30 funds in the last quarter. Rajiv Jain’s GQG Partners was the largest stakeholder of the company, with 59.6 million shares worth $1.8 billion.
9. Eaton Corporation plc (NYSE:ETN)
Dividend Yield as of February 12: 1.15%
Number of Hedge Fund Holders: 90
Average Upside Potential: 22.69%
Eaton Corporation plc (NYSE:ETN) is a global power management company based in Dublin, Ireland. The company operates through Electrical Americas and Electrical Global, Aerospace, Vehicle, and eMobility segments. ETN is one of the best dividend stocks to invest in, with an average upside potential of 22.69% as of February 12. On February 3, RBC Capital maintained an Outperform rating on Eaton and slightly trimmed the price target on the shares from $407 to $405. Despite a recent selloff, RBC was reassured by CEO Craig Arnold’s confidence in the company’s data center growth outlook.
Eaton Corporation plc (NYSE:ETN) is gearing up for another strong year in 2025, expecting solid market demand, organic growth, better margins, and higher free cash flow. In Q4 2024, the company hit record sales of $6.2 billion, with operating profit up 13% and adjusted EPS climbing 11% to $2.83. Cash flow was also at an all-time high, with operating cash flow surging 23% to $1.6 billion and free cash flow jumping 27% to $1.3 billion. Eaton plans to buy back $2 billion to $2.4 billion in shares while keeping plenty of cash on hand for strategic acquisitions to fuel future growth. Eaton has been a consistent dividend payer since 1923.
According to Insider Monkey’s Q3 data, 90 hedge funds were bullish on Eaton Corporation plc (NYSE:ETN), compared to 93 in the last quarter. Philippe Laffont’s Coatue Management was the largest stakeholder in the company, with 4.6 million shares worth $1.5 billion.
8. Vale S.A. (NYSE:VALE)
Dividend Yield as of February 12: 10.46%
Number of Hedge Fund Holders: 41
Average Upside Potential: 23.89%
Vale S.A. (NYSE:VALE) is a Brazilian mining company that produces and sells iron ore, iron ore pellets, nickel, and copper globally. Vale is set to invest $12.2 billion to expand its iron ore and copper mining operations at the Carajás complex in northern Brazil. The investment, planned through 2030, will be officially announced at an event with President Luiz Inácio Lula da Silva and his cabinet. Carajás is Vale’s biggest iron ore production hub, churning out 177.5 million metric tons last year, which is more than half of the company’s total output.
Vale S.A. (NYSE:VALE)’s free cash flow for the quarter came in at $0.2 billion, mainly due to lower EBITDA and negative working capital. The company saw a rise in accounts receivable, with 14 million tons of iron ore sales recorded at the end of the quarter and another 23 million tons booked at a forward price of $109 per ton. Capital expenditures held steady at $1.3 billion, staying under the 2024 guidance of $6.5 billion. Despite this, the company focused on returning value to shareholders, paying out $1.6 billion in interest on capital in September 2024. Vale last paid a quarterly dividend of $0.0869 per share on December 12. It is one of the best dividend stocks to invest in.
According to Insider Monkey’s third-quarter database, 41 hedge funds held stakes in Vale S.A. (NYSE:VALE), up from 34 funds in the earlier quarter. Rajiv Jain’s GQG Partners was the biggest position holder in the company, with nearly 18.3 million shares valued at $213.65 million.
7. AstraZeneca PLC (NASDAQ:AZN)
Dividend Yield as of February 12: 2.09%
Number of Hedge Fund Holders: 42
Average Upside Potential: 24.92%
British pharma giant AstraZeneca PLC (NASDAQ:AZN) is placed 7th on our list of the best dividend stocks for an income portfolio. The company develops prescription medicines for cardiovascular, renal, metabolic, oncology, and rare diseases. On February 12, BofA reiterated its Buy rating on the stock with a price target of £145. The firm’s positive stance is based on AZN’s valuation, which is considered attractive at approximately 14 times its projected 2026 earnings per share. BofA anticipates a potential rerating of the stock to 18 times its estimated 2026 P/E, driven by a mid-term guidance suggesting a high-single-digit compound annual growth rate for sales.
AstraZeneca PLC (NASDAQ:AZN) saw its net cash flow from operating activities rise by $1.5 billion in 2024. Capital expenditures reached $2.2 billion, aligning with the projected 50% increase compared to 2023. The company also expanded through strategic acquisitions, including Amolyt, Icosavax, and Fusion, while making nearly $7 billion in total debt payments. Additionally, the company raised its 2024 dividend to $3.10 per share and plans another increase to $3.20 in 2025. Looking ahead, the company expects total revenue to grow at a high single-digit rate in 2025, with core EPS projected to rise by a low double-digit percentage, supported by strong growth momentum despite some challenges.
According to Insider Monkey’s data, AstraZeneca PLC (NASDAQ:AZN) was owned by 42 hedge funds in Q3 2024, down from 49 funds in the previous quarter.
6. Diageo plc (NYSE:DEO)
Dividend Yield as of February 12: 3.54%
Number of Hedge Fund Holders: 26
Average Upside Potential: 25.75%
Diageo plc (NYSE:DEO) is an alcoholic beverage company that manufactures, markets and sells whisky, vodka, rum, gin, tequila, liqueurs, and flavored malt beverages. The company is taking a hard look at its portfolio as CEO Debra Crew tries to get the company back on track after a tough stretch. The beverage giant is reportedly considering spinning off or selling Guinness, which could be worth over $10 billion and might also reassess its 34% stake in Moet Hennessy, its Champagne and Cognac partnership with LVMH.
Diageo plc (NYSE:DEO)’s free cash flow rose by $125 million to $1.7 billion, driven by improved working capital management. DEO maintained its half-year dividend at $0.405 per share, reflecting a cautious stance amid market uncertainties. While the company withdrew its medium-term organic sales growth target of 5–7%, Diageo North America is investing $415 million in a 360,000-square-foot manufacturing and warehousing facility in Montgomery, Alabama, to enhance production capacity and supply chain efficiency. The facility is expected to be fully operational by late 2025.
According to Insider Monkey’s third-quarter database, 26 hedge funds were long Diageo plc (NYSE:DEO), compared to 31 funds in the last quarter. William B. Gray’s Orbis Investment Management was the biggest stakeholder in the company, with around 2 million shares valued at $278 million.
5. Barrick Gold Corporation (NYSE:GOLD)
Dividend Yield as of February 12: 2.29%
Number of Hedge Fund Holders: 42
Average Upside Potential: 27.77%
Founded in 1983, Barrick Gold Corporation (NYSE:GOLD) is a Canadian mining company specializing in exploring, producing, and selling gold and copper. It also deals in silver and energy materials. The company increased its gold reserves by 23% in 2024, reaching 89 million ounces, as a result of converting resources at Reko Diq. Since 2019, the company has replaced 180% of its depleted reserves, adding nearly 46 million ounces. On the copper side, reserves shot up by 224% year-over-year to 18 million tonnes, with feasibility studies at Lumwana and Reko Diq confirming them as top-tier projects. Barrick based its 2024 reserves on a gold price of $1,400 per ounce and a copper price of $3.00 per pound.
Barrick Gold Corporation (NYSE:GOLD) had a solid Q4, boosting gold production by 15% and copper production by 33% from the previous quarter, hitting its annual targets. For 2024, the company reported a 69% jump in net earnings to $2.14 billion, a 51% increase in adjusted net earnings to $2.21 billion, and its highest EBITDA in over a decade at $5.19 billion. Operating cash flow grew 20% to $4.49 billion, while free cash flow more than doubled to $1.32 billion. Barrick kept its quarterly dividend steady at $0.10 per share, bringing total annual payouts to $696 million, and spent $498 million buying back shares. The Q4 dividend will be paid on March 17, 2025, to shareholders on record as of February 28, 2025.
Among the hedge funds tracked by Insider Monkey in Q3 2024, 42 funds were bullish on Barrick Gold Corporation (NYSE:GOLD), compared to 43 funds in the last quarter. Jean-Marie Eveillard’s First Eagle Investment Management was the largest stakeholder in the company, with 54.8 million shares worth $1 billion.
4. Novartis AG (NYSE:NVS)
Dividend Yield as of February 12: 3.57%
Number of Hedge Fund Holders: 24
Average Upside Potential: 30.18%
Novartis AG (NYSE:NVS) is a Swiss global healthcare company that develops prescription medicines across multiple therapeutic areas, including cardiovascular, immunology, neuroscience, oncology, and ophthalmology. On February 11, 2025, the company announced that it is buying back Anthos Therapeutics in a deal worth up to $3.1 billion, reclaiming the rights to abelacimab, a potential breakthrough in stroke and blood clot prevention. Blackstone Life Sciences had originally licensed the drug from Novartis in 2019, backing its development with a $250 million investment in clinical trials. The company is paying $925 million upfront to take full ownership, with the possibility of additional payments based on future milestones.
Novartis AG (NYSE:NVS) had a strong Q4 2024, with net income soaring 26% to $3.93 billion, beating Wall Street’s expectations. The company now projects 5%+ sales growth until 2029. Novartis AG (NYSE:NVS) also hit a record-high free cash flow of $16.3 billion, up 24%, given its focus on pharmaceuticals. It plans $5.4 billion in share buybacks for 2025 and increased its dividend by 6% to CHF 3.50 per share, commemorating 28 consecutive years of dividend growth.
According to Insider Monkey’s third-quarter database, 24 hedge funds held stakes in Novartis AG (NYSE:NVS), compared to 30 funds in the last quarter. Jim Simons’ Renaissance Technologies was the biggest stakeholder in the company, with 2.30 million shares worth $264.6 million.
3. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Dividend Yield as of February 12: 1.73%
Number of Hedge Fund Holders: 26
Average Upside Potential: 30.75%
Anheuser-Busch InBev SA/NV (NYSE:BUD), a Belgian beverage titan, is one of the best dividend stocks to monitor. It is a global beverage company that manufactures, markets, and sells well-known beers including Budweiser, Corona, and Stella Artois. NASCAR and Anheuser-Busch are extending their partnership for 2025, with Busch Light remaining a Premier Partner and the “Official Beer Sponsor of NASCAR.” The brand is launching a summer music series at five pre-race events and hosting “DATE-TONA,” a speed dating event at Daytona. Busch Light will also continue sponsoring Trackhouse Racing and Ross Chastain, debuting a refreshed paint scheme at the 2025 DAYTONA 500.
Anheuser-Busch InBev SA/NV (NYSE:BUD) saw a 3.1% revenue increase in Q3 2024, fueled by a 10.2% surge in Corona sales outside its home market. Digital sales played a big role, with 72% of revenue coming from B2B platforms like BEES, which now has 3.9 million monthly users. The company’s direct-to-consumer digital sales also brought in $140 million. However, overall volumes dropped by 2.4%, with beer sales down 3.1% and non-beer up 0.6%. Q3 2023 earnings per share rose to $0.98 from $0.86 a year ago, and AB InBev approved a $2 billion share buyback over the next year. The company distributed a €0.82 per share annual dividend on June 7, 2024. It is one of the best dividend stocks to consider.
According to Insider Monkey’s Q3 data, 26 hedge funds were bullish on Anheuser-Busch InBev SA/NV (NYSE:BUD), 31 funds in the last quarter.
2. Rio Tinto Group (NYSE:RIO)
Dividend Yield as of February 12: 6.99%
Number of Hedge Fund Holders: 30
Average Upside Potential: 32.60%
Founded in 1873, Rio Tinto Group (NYSE:RIO) is headquartered in London. It is a global mining company specializing in iron ore, aluminum, copper, and minerals. On January 17, 2025, RBC Capital Markets maintained a Sector Perform rating and a £54 price target on the stock after reports of preliminary merger talks with Glencore, which appears undervalued at $56.42 billion. However, discussions are no longer active, and neither company has commented. The potential deal could have involved a merger or asset breakup.
While Rio Tinto Group (NYSE:RIO) remains optimistic about its future, the company fell short of Q3 production estimates. The $6.7 billion Arcadium Lithium acquisition is a bright spot for Rio’s future. The company’s iron ore output grew 1% but fell short of expectations, while copper production declined due to issues at the Kennecott mine. The company paid a $1.77 per share semi-annual dividend on September 26, 2024. It is one of the best dividend stocks to monitor for an income portfolio.
In the third quarter of 2024, 30 hedge funds were bullish on Rio Tinto Group (NYSE:RIO), compared to 29 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management was the leading stakeholder in the company, with 17.5 million shares worth $1.2 billion.
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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