In this article, we discuss 10 Best Annual Dividend Stocks To Buy Now. 

In 2025, dividends in MSCI Europe are expected to reach a record high. According to Allianz Global Investors, these firms are likely to increase dividend payouts by 4% year-over-year to €459 billion, up from €440 billion in 2024. In 2026, MSCI Europe dividends could catapult even higher to €496 billion. In Germany alone, payouts are projected to rise from €57 billion in 2024 to €63 billion in 2025, and possibly hit €70 billion in 2026. Allianz Global expects the Tech and Healthcare sectors to offer the highest dividend increases in 2025, while the Energy sector could likely create some weakness. The Financials sector will remain the biggest dividend contributor in Europe. Dividend yields are staying ahead of long-term German government bond yields as well, with the MSCI Europe dividend yield expected to be 3.5% this year.

Over the last 40 years, about 39% of MSCI Europe’s total annualized return resulted from dividends. Comparatively, dividend payouts made up 22% of total returns in MSCI North America and just over 41% in MSCI Pacific.

Jenny Harrington, CNBC Halftime Report’s go-to expert on dividends, observed that the broader market’s dividends have grown about 5.7% in the last 50-60 years, which means that dividend income is outpacing inflation. She also noted that dividends are a tax-advantaged income stream, which is a huge plus. Harrington also commented that dividend investors are more likely to hold their portfolios rather than selling in a panic when markets go down. They are reluctant to give up their income streams and risk wasting years of effort, which helps keep dividend portfolios steady and resilient, even during market selloffs.

Harrington also told investors that some companies may not have strong growth potential but generate high free cash flow, allowing them to pay dividends. However, those seeking high-growth stocks should carefully balance their portfolios. Harrington advised investors to explore opportunities beyond the broader market, as the index is heavily dominated by its top 10 stocks. She suggested that looking at other companies, including dividend stocks, could offer better value and growth potential. Given this, we will now take a look at some of the best annual dividend stocks.

Our Methodology 

For this article, we manually researched annual reports and company websites to see which stocks pay dividends annually. We focused on picking stocks with a consistent record of paying dividends, offering dividend growth, and being financially stable to steer clear of yield traps. The list below is ranked in the ascending order of dividend yield as of February 6.

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)

10. SAP SE (NYSE:SAP)

Dividend Yield as of February 6: 0.87%

Number of Hedge Fund Holders: 36

SAP SE (NYSE:SAP) is a provider of applications and technology for enterprise resource planning, HR management, and spend management solutions. Founded in 1972, the company is headquartered in Walldorf, Germany. For 2025, it raised the operating profit guidance from €10.2 billion to €10.3-€10.6 billion. SAP CEO Dominik Asam believes that the company remains on track to outperform in 2025 too, given that it already over-delivered in 2024, achieving the targets set for 2025 too. In the past 12 months, the stock has surged nearly 65%.

In Q4 2024, SAP SE (NYSE:SAP) total cloud backlog increased 40% year-over-year, equalling €63 billion. The company’s cloud revenue grew 27%, resulting in a double-digit revenue increase for three straight quarters. The company went the extra mile on its commitments to customers this year, providing 130 use cases for generative AI in 2024. Free cash flow in 2024 exceeded the prior guidance of €3.5 billion to €4 billion, increasing 19% year-over-year to €4.1 billion. SAP absorbed €2.5 billion in restructuring payouts and €0.2 billion in compliance-related settlements. However, the company also received a few hundred million in receivables due in 2025, and combined with robust profitability, it led to strong free cash flow for the year.

On May 15, 2024, SAP SE (NYSE:SAP) announced an annual dividend of $2.385 per share dividend. The dividend was paid on May 28, 2024. It is one of the best dividend stocks to monitor.

According to Insider Monkey’s third-quarter data, 36 hedge funds tracked by Insider Monkey held stakes in SAP SE (NYSE:SAP), up from 31 funds in the prior quarter. Billionaire Ken Fisher’s Fisher Asset Management is the largest position holder in the company, with 4.7 million shares worth over $1 billion.

9. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF)

Dividend Yield as of February 6: 1.93%

Number of Hedge Fund Holders: N/A

LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) is a French luxury goods company that operates worldwide. The company deals in wines and spirits, fashion and leather goods, fragrances, cosmetics, luxury hotels, watches, and jewelry brands. Some of the brands under LVMH include Hennessy, Dom Pérignon, Louis Vuitton, Christian Dior, Fendi, Fenty Beauty, Tiffany & Co., Bulgari, and TAG Heuer. As of February 6, the stock has surged around 10% year-to-date.

In 2024, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF)’s revenue came in at €84.7 billion, indicating 1% organic growth despite economic and geopolitical challenges. LVMH’s profit from recurring operations was €19.6 billion for the year, equalling an operating margin of 23.1%. The company’s free cash flow increased 29% year-over-year to €10.5 billion. LVMH witnessed steady growth in Europe and the US, while Japan experienced double-digit revenue growth, supported by a weak currency. LVMH also played a major role in the Paris 2024 Olympics, supported the reopening of Notre Dame Cathedral, and backed more than 910 nonprofits, impacting over 1.9 million people.

On April 17, 2025, LVMH Moët Hennessy – Louis Vuitton, Société Européenne (OTC:LVMHF) plans to propose a dividend of €13 per share. An interim payment of €5.50 per share was distributed on December 4, 2024, with the remaining €7.50 per share scheduled for payment on April 28, 2025. It is one of the best dividend stocks with an annual payout to watch.