11 Best Annual Dividend Stocks to Buy According to Hedge Funds

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1. ASML Holding N.V. (NASDAQ:ASML)

No. of Hedge Funds: 78

Annual Dividend: $7.39

ASML Holding N.V. (NASDAQ:ASML) finds its way into the list of 11 best annual dividend stocks to buy according to hedge funds. Despite the management expressing concerns over the 2026 outlook, the stock gains a Buy rating from analysts.

Founded as a joint venture between the Dutch technology companies Philips and ASM International, ASML Holding N.V. (NASDAQ:ASML) designs, manufactures, and services advanced lithography, metrology, and inspection systems for the semiconductor industry. The Netherlands-based company enables chipmakers to mass-produce the intricate patterns on silicon wafers that form integrated circuits.

ASML Holding N.V. (NASDAQ:ASML) reported strong Q2 2025 results on July 16, 2025. The company’s net sales saw a 23.2% year-over-year growth, while the EPS surged by 47.1%. However, the company’s stock price plunged following the management’s recent commentary on its 2026 outlook. The company, initially confident in the rise of demand due to the artificial intelligence revolution, now stated that it cannot confirm growth in 2026 because of customer hesitation and ongoing market uncertainty. The commentary was part of the Q2 2025 earnings call on July 16, 2025.

Analysts’ opinion on the stock, though mixed, mostly leans towards the Buy rating. CNN, for instance, noted 68% of the 38 analysts sticking to a Buy rating for ASML Holding N.V. (NASDAQ:ASML). The stock remains attractive with an annual dividend of $7.39 and a sturdy investor confidence represented by 78 hedge funds.

While we acknowledge the potential of ASML to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ASML and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Dividend Stocks with a Consistent 3-Year Payout History and 11 Best Short Squeeze Stocks to Buy Now.

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