In this article, we will discuss 5 best foreign stocks with dividends. If you want to read our detailed discussion on foreign investments, go directly to read 10 Best Foreign Stocks With Dividends.
5. Sanofi (NASDAQ:SNY)
Dividend Yield as of October 25: 4.29%
Sanofi (NASDAQ:SNY) is a French healthcare company that provides innovative health solutions to its consumers. In Q2 2022, the company reported growth on all fronts. Its vaccine sales grew by 8.7% due to a strong rebound in travel. The company’s free cash flow came in at €1.5 billion, up 7.5% from a prior-year quarter.
Sanofi (NASDAQ:SNY) is one of the best foreign stocks on our list as the company has been raising its dividends consistently for the past 28 years. It currently pays a quarterly dividend of €0.83 per share for a dividend yield of 4.29%, as of October 25.
In October, Barclays maintained an Equal Weight rating on Sanofi (NASDAQ:SNY) with an €85 price target, appreciating the company’s balance sheet and earnings growth.
At the end of Q2 2022, the number of hedge funds tracked by Insider Monkey owning stakes in Sanofi (NASDAQ:SNY) grew to 28, from 19 in the previous quarter. These stakes have a consolidated value of over $1.68 billion. With 4 million shares, Camber Capital Management was one of the company’s leading stakeholders in Q2.
4. Royal Bank of Canada (NYSE:RY)
Dividend Yield as of October 25: 4.35%
Royal Bank of Canada (NYSE:RY) is a Canadian multinational financial services company that serves over 17 million clients globally. In September, Barclays reinstated the stock with an Overweight rating and a C$137 price target, following its acquisition of investment management company, Brewin Dolphin.
In Q2 2022, Royal Bank of Canada (NYSE:RY) reported a net income of C$3.6 billion, down 17% from the same period last year. The company generated revenue of C$12.1 billion, compared with C$11.2 billion in the previous quarter. During the quarter, it returned C$1.8 billion in dividends to shareholders and C$1.3 billion in share repurchases.
Royal Bank of Canada (NYSE:RY) has raised its dividends every year since 2012, which makes it one of the best foreign stocks on our list. The company currently pays a quarterly dividend of C$1.28 per share and has a dividend yield of 4.35%, as recorded on October 25.
At the end of Q2 2022, 12 hedge funds in Insider Monkey’s database owned stakes in Royal Bank of Canada (NYSE:RY), with a total value of $111.8 million. Among these hedge funds, Millennium Management was the company’s major stakeholder in Q2.
3. Telefónica, S.A. (NYSE:TEF)
Dividend Yield as of October 25: 10.47%
Telefónica, S.A. (NYSE:TEF) is a Spanish multinational telecommunications company that is also one of the largest telephone operators and mobile network providers in the world. The company currently pays a semi-annual dividend of $0.013 per share and has a dividend yield of 10.47%, as of October 25.
In Q2 2022, Telefónica, S.A. (NYSE:TEF) reported revenue of €10.04 billion, which showed a 0.8% growth from the same period last year. The company generated €1.34 billion in free cash flow during the first half of the year, up 48.2% from the prior-year period. During this time, it paid €169 million in dividends to shareholders, which shows that the company’s free cash flow is strong for its shareholder obligation.
In October, Barclays maintained an Equal Weight rating on Telefónica, S.A. (NYSE:TEF) with a €3.90 price target, expecting the company to produce positive results in the upcoming quarter.
At the end of Q2 2022, 7 hedge funds tracked by Insider Monkey owned stakes in Telefónica, S.A. (NYSE:TEF), compared with 11 in the previous quarter. These stakes have a total value of roughly $60 million.
2. Rio Tinto Group (NYSE:RIO)
Dividend Yield as of October 25: 12.65%
Rio Tinto Group (NYSE:RIO) is an Anglo-Australian multinational mining company that specializes in processing the Earth’s mineral resources. In October, JPMorgan raised its price target on the stock to GBP 5,480 and maintained a Neutral rating on the shares, mentioning the company’s earnings growth.
Rio Tinto Group (NYSE:RIO), one of the best foreign stocks, paid $4.3 billion in dividends to shareholders in Q2, which is the second-highest interim dividend in the market. The company generated $10.5 billion in operating cash flow and its free cash flow came in at $7.1 billion during the quarter.
Rio Tinto Group (NYSE:RIO) pays an interim dividend of $2.665 per share, with a dividend yield of 12.65%, as of October 25. In February, the company also paid a special dividend to shareholders. It has a healthy payout ratio of 50%.
As of the close of Q2 2022, 24 hedge funds in Insider Monkey’s database owned stakes in Rio Tinto Group (NYSE:RIO), worth $1.72 billion. With 14.8 million shares, Fisher Asset Management was the company’s leading stakeholder in Q2.
1. BHP Group Limited (NYSE:BHP)
Dividend Yield as of October 25: 13.26%
BHP Group Limited (NYSE:BHP) is an Australian mining company that specializes in the exploration of iron ore, metallurgical coal, and copper. The company has raised its dividends at a CAGR of 31.3% in the last five years. It currently pays a semi-annual dividend of $3.50 per share and has a dividend yield of 13.26%, as recorded on October 25.
Street analysts presented a positive outlook on BHP Group Limited (NYSE:BHP) after the company’s solid performance this year. In October, both Barclays and JPMorgan raised their price targets on the stock to GBP 2,250 and 2,330, respectively.
At the end of the June quarter of 2022, 19 hedge funds tracked by Insider Monkey held a bullish stance on BHP Group Limited (NYSE:BHP), the same as in the previous quarter. The stakes owned by these hedge funds have a consolidated value of over $1.38 billion.
You can also take a look at 11 Best REIT Stocks to Buy Right Now and 10 Best European Dividend Stocks to Buy Now
