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.