12 foreign dividend stocks that are best for investment

In this article, we will discuss the 12 best foreign dividend stocks for investment. You can also skip the detailed analysis of dividend stock performance over the years and read it directly. 5 foreign dividend stocks that are best for investment.

Investors consistently show a preference for dividend-paying stocks, whether they’re U.S. or international. The main purpose of investing in these stocks is to generate stable income, which is a top priority for investors. Dividends serve as an indicator of a company’s financial strength. Over time, companies that initiated or increased dividends tended to outperform companies that reduced or eliminated dividend payments. According to Franklin Templeton’s research, companies in the S&P 500 that have consistently increased or started dividends have recorded a positive return of 8.58% over his 30-year period ending in December 2022. did. In contrast, companies that reduced their dividends showed a negative return of 2.64%. . Moreover, stocks that did not pay dividends gave him a return of 3.25% during the same period.

These returns aren’t limited to U.S. stocks. Global companies that consistently increase their dividends also show strong performance over time. There is significant evidence from a variety of stock markets that dividend-focused investment strategies tend to outperform the overall market over the long term. Over the past 20 years, companies in the MSCI All Country World Index that have started or consistently increased their dividends have had a return of 10.68%, Abdon said, referring to FactSet data. revealed. In contrast, companies that cut or eliminated their dividends had a negative return of 2.70%. The report highlighted that in the global equity space, the annual return volatility of dividend growth companies and dividend initiators is significantly lower than that of non-dividend-paying companies and dividend cut-and-eliminator companies. Additionally, compared to the broader global equities represented by the MSCI ACWI Index, Dividend Growers & Initiators’ returns also have lower volatility, contributing to more favorable risk-adjusted returns.

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In periods marked by rising inflation and sharply rising interest rates, investors value higher yields more. The prospect of earning additional percentage points on revenue becomes particularly attractive. As of May 2023, the markets with the highest yields include Norway, Hungary, Romania, and Iceland, according to a Morningstar report. On average, Norwegian stocks that offer dividends yield an impressive 17.83%, making them particularly attractive for investors looking for solid returns in these economic conditions.

Johnson & Johnson (NYSE:JNJ), Procter & Gamble Company (NYSE:PG), and AbbVie Inc. (NYSE:ABBV) are some of the most prominent dividend stocks in the United States. However, in this article, we will take a look at some of the best foreign dividend stocks to invest in.

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Our methodology:

For this list, we first used a stock screener to identify foreign (non-US) stocks that trade on US stock exchanges. From this dataset, we then selected the 12 stocks with the highest number of hedge fund investors from Insider Monkey’s database for Q3 2023. We then ordered the stocks featured in the article in ascending order based on the number of hedge fund investors. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail).

12. Royal Bank of Canada (NYSE:RY)

Number of hedge fund holders: 19 people

Royal Bank of Canada (NYSE:RY) is one of Canada’s largest and best-known banks and a major player in the global financial industry. In November 2023, the company announced a 2% increase in its quarterly dividend to C$1.38 per share. It has raised its dividend every year since 2012, making RY one of the best foreign dividend stocks to invest in. The stock’s dividend yield is 4.16% as of January 26th.

RY can be added to your dividend portfolio alongside popular US dividend stocks like Johnson & Johnson (NYSE:JNJ), Procter & Gamble Company (NYSE:PG), and AbbVie Inc. (NYSE:ABBV) .

As of the end of Q3 2023, 19 hedge funds tracked by Insider Monkey reported owning shares of Royal Bank of Canada (NYSE:RY), up from 20 in the previous quarter. It decreased slightly. The consolidated value of these shares is more than $193.6 million. Among these hedge funds, Israel Englanders Millennium Management was the company’s largest shareholder in the third quarter.

11. Unilever PLC (NYSE:UL)

Number of hedge fund holders: 21 people

Unilever PLC (NYSE:UL) is a London-based multinational consumer goods company with a broad portfolio of products across various categories. In November 2023, the company announced a quarterly dividend of $0.453 per share, the same as its previous dividend. With a dividend yield of 3.94% as of January 26, UL is one of the best foreign dividend stocks on our list.

The number of hedge funds tracked by Insider Monkey that own Unilever PLC (NYSE:UL) stock increased to 21 in Q3 2023 from 19 in the previous quarter. The total value of these investments is more than his $628 million.

Artisan Partners mentioned Unilever PLC (NYSE:UL) in its Q2 2023 investor letter. The company’s comments are as follows:

10. Novartis AG (NYSE:NVS)

Number of hedge fund holders: 26

Novartis AG (NYSE:NVS) is a multinational pharmaceutical and healthcare company headquartered in Switzerland. The company is one of the world’s largest pharmaceutical companies and operates in various areas of the healthcare industry. The company currently pays an annual dividend of CHF 3.20 per share, which was raised by 3.2% in February. This is the company’s 26th consecutive year of dividend increases, and NVS is listed on our list of best foreign dividend stocks. As of January 26, the stock’s dividend yield is 3.27%.

As of the end of Q3 2023, 26 hedge funds tracked by Insider Monkey reported owning Novartis AG (NYSE:NVS) stock, with the number of shares unchanged from the previous quarter. do not have. The total value of these stakes is over $468 million.

9. Sanofi (NASDAQ:SNY)

Number of hedge fund holders: 29 people

Sanofi (NASDAQ:SNY) is a Paris-based multinational pharmaceutical company primarily focused on the research, development, manufacturing, and marketing of pharmaceutical products. The company paid an annual dividend of 3.56 euros per share as of January 26, giving him a dividend yield of 3.81%. With 29 years of consecutive dividend growth, SNY is one of the best foreign dividend stocks on our list.

Of the 910 hedge funds tracked by Insider Monkey at the end of Q3 2023, 29 funds owned Sanofi (NASDAQ:SNY) stock, compared to 30 funds last quarter. The total value of these shares is $1.18 billion. Fisher Asset Management, with approximately 15 million shares, was the company’s major shareholder in the third quarter.

8. BP plc (NYSE:BP)

Number of hedge fund holders: 35 people

BP plc (NYSE:BP) is a British multinational oil and gas company with operations across the energy sector. As of January 10th, the company is offering a dividend of $0.4362 per American Depositary Share (ADS), representing a dividend yield of 4.86x. The company has been paying regular dividends to shareholders since 1998, making BP one of the best foreign dividend stocks in the United States. our list. The dividend yield of the company’s stock as of January 26 was 4.82%.

According to Insider Monkey’s database, 35 hedge funds held investments in BP plc (NYSE:BP) at the end of September 2023, down from 36 in the previous quarter. The total value of these shares is over $2.05 billion.

7. Barrick Gold Corporation (NYSE:GOLD)

Number of hedge fund holders: 36

Barrick Gold Corp (NYSE:GOLD) ranks No. 7 on the list of blue-chip foreign dividend stocks. This leading international gold mining company is headquartered in Toronto, Canada and has a significant presence in the global mining industry. The company is primarily engaged in the exploration, development and operation of gold mines. Currently, as of January 26th, he is paying a quarterly dividend of $0.10 per share, giving him a dividend yield of 2.58%.

As of the end of Q3 2023, 36 hedge funds in Insider Monkey’s database reported owning shares in Barrick Gold Corporation (NYSE:GOLD), up from 32 in the previous quarter. increased. The total value of these stakes is more than $454.4 million. First Eagle Investment Management was the company’s major shareholder in the third quarter, holding more than 42 million shares.

6. LyondellBasell Industries NV (NYSE:LYB)

Number of hedge fund holders: 36

LyondellBasell Industries NV (NYSE:LYB) is a multinational chemical industry company headquartered in the Netherlands. The company manufactures and refines petrochemicals, polymers, and other chemical products. LYB has maintained a consistent track record of dividend growth over his 13 years, making him one of the best foreign dividend stocks on our list. The dividend yield as of January 26th is 5.24%.

In addition to popular dividend stocks like Johnson & Johnson (NYSE:JNJ), Procter & Gamble Company (NYSE:PG), and AbbVie Inc. (NYSE:ABBV), LYB Ban also offers investors a reliable investment. Provide options.

The number of hedge funds tracked by Insider Monkey that owns LyondellBasell Industries NV (NYSE:LYB) stock was 36 in Q3 2023, unchanged from the previous quarter. The consolidated value of these shares is more than $687.2 million.

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Disclosure. none. 12 Best foreign dividend stocks for investment Originally published on Insider Monkey.