In this article, we will be looking at the 11 best annual dividend stocks to buy according to hedge funds.

Stability without compromising the returns has become the priority in today’s market. The looming uncertainty has made dividend stocks a top choice for hedge funds seeking a similar balance. Central banks’ debates on policy shifts go on, and interest rate strategies take effect on the capital allocation across the globe.

CNBC noted the Wall Street veteran David Zervos of Jefferies recently criticized the overrestrictiveness of the monetary policy and directly supported sharper rate cuts for growth and employment sustainability. The rising expectations on the Federal Reserve’s easing increases the appetite for equities with steady income streams, especially when bond yields appear less attractive.

On a side note, global consumption stories are engaging the investors. India, for instance, has rolled out sweeping tax reforms designed to increase household spending and offset tariff headwinds from the U.S. According to CNBC, analysts are projecting a 6.9% expansion in annual private final consumption through 2026. The possible effect of these decisions from a significant trade partner of the U.S. remains uncertain.

In light of these changing policies and rising consumption, hedge funds become a dependable guide for building portfolios with stocks that promise sustainable payouts. On this point, we have put together the 11 best annual dividend stocks to buy according to hedge funds.

Stay with us as we count them down from 11 to 1, as the top 5 might just refine your portfolio.

Our Methodology

When putting together our list of 11 best annual dividend stocks to buy according to hedge funds, we followed a few criteria. Primarily, we have included only those stocks with hedge funds that offer annual dividend payments, to ensure optimal and stable income. For ranking the stocks, we have used the number of hedge funds as of the second quarter of 2025. We gathered this data from the Insider Monkey database. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of August 24, 2025.

Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

11. G. Willi-Food International Ltd. (NASDAQ:WILC)

No. of Hedge Funds: 1

Annual Dividend: $0.60

G. Willi-Food International Ltd. (NASDAQ:WILC) takes a spot in our list of 11 best annual dividend stocks to buy according to hedge funds. Following impressive profit and sales growth, the company declared an annual dividend this month.

Israel-based company, G. Willi-Food International Ltd. (NASDAQ:WILC) specializes in the development, import, marketing, and distribution of a range of kosher food products. Founded in 1992, the company is currently a leading food importer in Israel. It distributes over 650 products to more than 1,500 customers and 3,000 selling points globally. Its portfolio includes canned goods, dairy products, oils, and more.

The company ended the second quarter of 2025, on June 30, 2025, with record-high results. Net profit surged by an impressive 365.5% year-over-year. Its sales also grew by 9.4%, attributed to an increase in inventory, improved product availability, and growing demand for its private label products. The results were announced on August 12, 2025.

In addition to this, G. Willi-Food International Ltd. (NASDAQ:WILC) announced a cash dividend distribution of NIS 20 million (approximately US$5.8 million) or NIS 1.44 per ordinary share. The dividend is payable to shareholders of record as of August 25, 2025, and will be paid on September 4, 2025

G. Willi-Food International Ltd. (NASDAQ:WILC)’s annual dividend stands at $0.60. The stock has the lowest number of hedge funds in the company in our list, missing a balance between stable income and institutional confidence.

10. Enerpac Tool Group Corp. (NYSE:EPAC)

No. of Hedge Funds: 21

Annual Dividend: $0.04

Enerpac Tool Group Corp. (NYSE:EPAC) secures a rank in our list of 11 best annual dividend stocks to buy according to hedge funds. Following strong third-quarter earnings, the company witnessed a bold stock sale from its top executive.

Enerpac Tool Group Corp. (NYSE:EPAC) is a global industrial company specializing in high-precision tools, services, and solutions. Based in Wisconsin, the company’s focus is on high-pressure hydraulic tools and controlled-force products, which are used for the precise positioning of heavy loads. Its client base includes infrastructure, energy, and mining sectors. Revenue is primarily generated through product sales and related services like maintenance and rentals.

In its Q3 2025 earnings call reported on June 27, 2025, Enerpac Tool Group Corp. (NYSE:EPAC) reported a 6% year-over-year revenue increase, the highest since its 2019 relaunch. This growth was notably contributed to by the Cortland Biomedical segment’s significant 19% surge and massive demand in the Americas, particularly within the aerospace, infrastructure, and nuclear sectors. With announcements revealing the company’s innovation lab enhancing its R&D capabilities, the outlook remains positive.

Despite the strong quarter, Director James E. Ferland sold 4,224 of the company’s shares on August 13, 2025, in a transaction valued at $173,141. On the other hand, the Buy rating on the stock continues with an upside potential of 16.68%. With an annual dividend of $0.04, 21 hedge funds hold stakes in Enerpac Tool Group Corp. (NYSE:EPAC), suggesting confidence in dividend consistency.

9. Sanofi (NASDAQ:SNY)

No. of Hedge Funds: 24

Annual Dividend: $2.20

Sanofi (NASDAQ:SNY) earns a spot in our list of 11 best annual dividend stocks to buy according to hedge funds. The company expands its product pipeline with major acquisitions despite missing Q2 earnings sales expectations.

The French multinational pharmaceutical and healthcare company, Sanofi (NASDAQ:SNY) focuses on discovering, developing, manufacturing, and marketing a variety of pharmaceutical products, vaccines, and consumer healthcare products. Headquartered in Paris, the company leverages its advanced technologies like AI and mRNA platforms to discover and develop innovative therapies and vaccines.

In a series of recent moves, the company completed the acquisitions of Vigil Neuroscience, a US-based biotechnology company, for approximately $470 million in cash, on August 6, 2025, and Blueprint Medicines on July 18, 2025, for $9.1 billion. It also announced an agreement to acquire British biotech firm Vicebio on July 22, 2025, for $1.15 billion. With these acquisitions, Sanofi (NASDAQ:SNY) aims to expand its product pipeline in critical high-growth areas, including respiratory vaccines, oncology, and immunology.

On the other hand, the company’s second-quarter earnings fell short of sales expectations, with sales of $11.33 billion narrowly missing the consensus forecast. However, it also reported positive regulatory news, with its rilzabrutinib earning orphan designation in the EU and its SAR446523 monoclonal antibody receiving a similar designation in the U.S. on July 24, 2025.

Sanofi (NASDAQ:SNY) offers an annual dividend of $2.20, with 24 hedge funds representing a modest institutional confidence in the stock.

8. Deutsche Bank Aktiengesellschaft (NYSE:DB)

No. of Hedge Funds: 27

Annual Dividend: $0.77

Deutsche Bank Aktiengesellschaft (NYSE:DB) manages a position in our list of 11 best annual dividend stocks to buy according to hedge funds. Analyst sentiment remains mixed despite a positive first half of 2025.

German multinational investment bank and financial services company, Deutsche Bank Aktiengesellschaft (NYSE:DB), operates from its headquarters in Frankfurt and has a dual listing on both the Frankfurt Stock Exchange and the New York Stock Exchange. Founded in 1870, the company offers a wide range of services, including corporate banking, investment banking, private banking, and asset management.

In the first half of 2025, Deutsche Bank Aktiengesellschaft (NYSE:DB)’s pre-provision profit nearly doubled to €6.2 billion. The profit is primarily due to a diversified business mix and a 4% rise in net commission and fee income. In doing so, the bank achieved 90% of its operational efficiency target, contributing to a strong Common Equity Tier 1 (CET1) ratio.

However, despite the achievements, the analysts’ rating on the stock remains mixed. Buy rating and Hold rating gain almost equal weightage among the 19 analysts followed by CNN. On the other hand, 27 hedge funds holding ownership in the company signal a moderate institutional trust in the company’s growth prospects. Deutsche Bank Aktiengesellschaft (NYSE:DB) offers a comparatively low but stable annual dividend of $0.77.

7. Stellantis N.V. (NYSE:STLA)

No. of Hedge Funds: 28

Annual Dividend: $0.77

Stellantis N.V. (NYSE:STLA) holds a rank in the list of 11 best annual dividend stocks to buy according to hedge funds. The company faces market headwinds using new launches and other strategic moves.

One of the world’s leading automakers, Stellantis N.V. (NYSE:STLA) is a multinational automotive manufacturer formed in 2021 by the merger of Fiat Chrysler Automobiles and Groupe PSA. With a diverse portfolio that includes 14 iconic brands such as Jeep, Dodge, Chrysler, Fiat, Peugeot, and Maserati, the Netherlands-based company has made a commitment towards leading the transition to sustainable mobility.

In its Q2 2025 earnings report, Stellantis N.V. (NYSE:STLA) highlighted a revenue of €38.4 billion, exceeding the forecast of €37.7 billion slightly by 1.86%. While it signalled a positive outlook for the company, there was a significant EPS miss, with a reported EPS of -$0.78 that fell far short of the forecasted $0.35. Meanwhile, several new launches during the period, including five new B and C segment entries in Europe, are anticipated to drive future growth.

Further expectations regarding the future growth also include the company bringing back the Hemi V8 engine to its Ram trucks and the upcoming gas-powered Dodge Charger Six Pack. With these strategic moves, Stellantis N.V. (NYSE:STLA) intends to take on the headwinds during the latter half of 2025, including the €1.5 billion impact from US tariffs and strong competition from Chinese automakers.

Insider Monkey database noted 28 hedge funds holding positions in the company’s stocks, while Stellantis N.V. (NYSE:STLA) offers an annual dividend of $0.77.

6. Credicorp Ltd. (NYSE:BAP)

No. of Hedge Funds: 29

Annual Dividend: $11.01

Credicorp Ltd. (NYSE:BAP) is part of the list of 11 best annual dividend stocks to buy according to hedge funds. Following strong Q2 earnings, the company makes an update on its legal dispute with the Peruvian Tax Authority.

Peru’s largest financial services holding company, Credicorp Ltd. (NYSE:BAP), has a diversified portfolio spanning universal banking, microfinance, insurance, and investment management. It primarily focuses on providing financial services across Latin America, through its subsidiaries like Banco de Crédito del Perú (BCP). With its financial resilience, the company maintains a strong market presence.

Credicorp Ltd. (NYSE:BAP) released its Q2 2025 earnings on August 14, 2025. The report highlighted a revenue of $1.6 billion, surpassing the forecast by a significant 4.39%. It also reported an EPS of $6.2, which exceeded expectations by a significant 8.9%.

Additionally, on August 14, 2025, the company provided an update on its legal dispute with the Peruvian Tax Authority, known as SUNAT, which had issued a tax demand of approximately S/ 1.6 billion soles on June 27, 2025. As per the update, the total demanded amount has been cancelled. Although the company still disputes the underlying issues, the cancellation reduced short-term uncertainty.

Credicorp Ltd. (NYSE:BAP) sees moderate institutional interest with 29 hedge funds backing the stock. The significant dividend of $11.01 stands attractive to investors seeking long-term stable income.

5. SAP SE (NYSE:SAP)

No. of Hedge Funds: 32

Annual Dividend: $2.63

SAP SE (NYSE:SAP) holds a place in the list of 11 best annual dividend stocks to buy according to hedge funds. The increase in cloud revenue and the company’s expansion in China support its growth in the latter half of 2025.

Headquartered in Germany, SAP SE (NYSE:SAP) is a global provider of enterprise application software and software-related services. With operations in over 157 countries, the company helps businesses manage core operations across finance, human resources, supply chain, and customer experience. Its portfolio includes a range of cloud and on-premises solutions, including enterprise resource planning (ERP) and CRM.

On July 22, 2025, SAP SE (NYSE:SAP) released its Q2 2025 earnings call, which highlighted a 28% increase in cloud revenue. The company attributes this growth to strong performance in Cloud ERP Suite. Operating profit also went up by 35%. The strategic partnership with Alibaba is anticipated to expand the company’s business operations in China, supporting a strong pipeline for the second half of 2025.

As per CNN, the company gains a consensus Buy rating from 16 analysts with a strong 1-year median upside potential of 25.41%. Concerning the annual dividend, the stock offers $2.63 per share, with 32 hedge funds providing modest confidence for investors seeking a stable annual dividend stock.

4. Novartis AG (NYSE:NVS)

No. of Hedge Funds: 34

Annual Dividend: $3.99

Novartis AG (NYSE:NVS) holds a place in our list of 11 best annual dividend stocks to buy according to hedge funds. The company’s positive outlook strengthens with new updates on ianalumab and Leqvio.

Novartis AG (NYSE:NVS) is a multinational pharmaceutical company focused on researching, developing, manufacturing, and marketing innovative medicines. The Switzerland-based company aims to improve people’s lives by discovering new ways to treat diseases. Novartis AG (NYSE:NVS) has over 109,000 people of more than 140 nationalities working for it around the world.

On August 11, 2025, Novartis AG (NYSE:NVS) announced the positive Phase III trial results for ianalumab, a novel monoclonal antibody. The results revealed that ianalumab met its primary endpoints in both Sjögren’s disease and primary immune thrombocytopenia (ITP) trials. The drug has the potential to be the first targeted treatment for the chronic autoimmune disorder with significant unmet need, Sjögren’s.

In addition to this, on July 31, 2025, the FDA approved a label update for Leqvio, a cholesterol-lowering drug. The approval allows the drug to be used as a first-line monotherapy, thereby expanding its utility and addressing the challenge of patient adherence in managing cholesterol, a critical risk factor for heart disease.

Following these pipeline advancements, the stock received a Buy rating from Kepler Capital and Deutsche Bank, while UBS sticks to its Hold rating. Institutional interest in the stock remains strong, with 34 hedge funds holding stakes in the company as it offers an annual dividend of $3.99 per share for its shareholders.

3. UBS Group AG (NYSE:UBS)

No. of Hedge Funds: 36

Annual Dividend: $0.45

UBS Group AG (NYSE:UBS) secures a position in our list of 11 best annual dividend stocks to buy according to hedge funds. Amid a positive second quarter and anticipated headwinds, the company’s annual dividend yield stands strong,

The leading Swiss multinational investment bank and financial services company, UBS Group AG (NYSE:UBS) is renowned for its global wealth management, asset management, and investment banking services. Headquartered in Zurich and Basel, the company holds the title of one of the world’s largest private banks. Its client base is comprised of entities ranging from individuals to institutions.

On July 30, 2025, UBS Group AG (NYSE:UBS) reported its Q2 2025 results that showcased a profit before tax (PBT) of $2.2 billion for the quarter. The underlying PBT, a non-GAAP measure that excludes items management deems non-representative of core performance, was a comparatively elevated $2.7 billion.

In the report, the company also updated its progress in integrating Credit Suisse as well as its commitment to supporting the Swiss economy. While the company is confident in achieving its aims and goals through significant loan renewals and a strong performance in its Investment Bank, UBS Group AG (NYSE:UBS) also expressed concerns over regulatory challenges in Switzerland’s capital regime, which could impact its capital strength and return on equity.

Despite the potential headwinds, the company offers an annual dividend of $0.45 while backed by a strong institutional confidence from 36 hedge funds.

2. Novo Nordisk A/S (NYSE:NVO)

No. of Hedge Funds: 45

Annual Dividend: $1.17

Novo Nordisk A/S (NYSE:NVO) secures a position in our list of 11 best annual dividend stocks to buy according to hedge funds. The company advances with strong Q2 results and FDA approval for the weight loss drug Wegovy.

Novo Nordisk A/S (NYSE:NVO) is a discover, developer, and marketer of pharmaceutical products, particularly for diabetes care. Based in Denmark, the company also develops treatments for other serious chronic diseases, including obesity, rare blood disorders, and endocrine diseases. It currently handles the manufacturing and marketing of its products globally.

On August 6, 2025, Novo Nordisk A/S (NYSE:NVO) reported a net sales growth of 16% year-over-year, reaching approximately 155 billion Danish kroner and a net profit growth of 22%. Additionally, the company also saw a surge in the arrival of the FDA’s approval for its weight-loss drug, Wegovy, for the treatment of adults with metabolic dysfunction-associated steatohepatitis (MASH) and moderate to advanced liver fibrosis. The approval granted on August 11, 2025, positions Wegovy as the first GLP-1 therapy for a disease that affects millions of people in the U.S. The prevalence rate is expected to increase by 63% before 2030.

With these developments, the stock received a Buy rating from Deutsche Bank and got upgraded from Sell to Hold by DBS Bank, signalling confidence among analysts. The company offers an attractive annual dividend of $1.17, and it is backed by a strong institutional interest that involves 45 hedge funds holding stakes in the ownership.

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.

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