In this article, we discuss 13 Best Foreign Dividend Stocks To Buy According to Analysts.
Dividends have historically been a key driver of investor returns, contributing 85% of the broader market’s total return since 1960. In Q3 2024, global dividends hit a record $431.1 billion, despite a drop in special one-off dividends. Underlying dividend growth remains strong at 6.4% for 2024.
Some markets saw major milestones. According to a Janus Henderson report, China, India, and Singapore hit record-high dividends, while the US got a boost from Big Tech firms, which started paying dividends for the first time. In fact, 96% of US companies either increased their payouts or kept them steady. Financials and tech were the biggest growth drivers, while mining and transport lagged behind.
India stood out in a big way, and its dividends surged 27.4% to a record $16.2 billion in Q3. Nearly every company posted double-digit increases, and a whopping 97% of Indian companies in the Janus Henderson index have raised or maintained dividends over the last two years, well above the global average. Japan and Canada also continued their upward trend in the third quarter, with a 6.1% and 6.5% increase in dividends, respectively. On the other hand, Europe’s dividend growth slowed a bit to 3.9%, and the UK saw a 7% drop in dividends, mainly because a few commodity giants slashed payouts to manage debt and weak profits.
The Asia-Pacific region was a mixed bag. Taiwan, Hong Kong, and Australia saw dividend declines in Q3, while Singapore and South Korea posted steady gains. Meanwhile, Brazil’s dividends plunged 42% in Q3, but since Brazilian companies have irregular payout patterns, the drop is not as dramatic as it seems. Elsewhere in emerging markets, Saudi Arabia and Thailand were among the strongest performers in the third quarter. Despite some regional setbacks, the overall outlook for dividends remains positive, with financials and tech leading the charge globally.
For years, international stocks have taken a backseat to the dominance of major US tech companies, but that trend could be shifting. A combination of global factors is making foreign equities more attractive to investors, with the main reason being the recent decline of the US dollar against the euro and other major currencies since last October. Given this, we will take at some of the best foreign dividend stocks.
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Our Methodology
For this article, we used the Finviz stock screener to filter out foreign dividend stocks. Next, we manually searched for the average upside potential of each stock and selected 13 stocks with the highest values. The list below is ranked in ascending order of the upside potential as of February 12. We have also mentioned the dividend yields and hedge fund sentiment as of Q3 2024.
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13. Novo Nordisk A/S (NYSE:NVO)
Dividend Yield as of February 12: 1.75%
Number of Hedge Fund Holders: 61
Average Upside Potential: 19.15%
Novo Nordisk A/S (NYSE:NVO) is a Denmark-based pharmaceutical company specializing in diabetes, obesity, and rare disease treatments. On February 12, Morgan Stanley began coverage of the Ozempic-maker, assigning the stock an Equal Weight rating with a price target of DKK 700. Morgan Stanley sees huge potential in the company’s obesity market, which could exceed $150 billion over time, but warns of challenges like slow adoption and pricing pressures.
Novo Nordisk A/S (NYSE:NVO) had a remarkable performance last year, with sales increasing 25% to $40.6 billion, but growth is expected to slow in 2025. The stock has dropped 40% since June as investors worry about obesity drug demand, mixed trial results, and political uncertainty. However, on a positive note, the company raised its dividend by 21.3% in 2024 to DKK 11.40, achieving 29 straight years of increases. For 2025, Novo expects sales growth of 16-24%, DKK 75-85 billion in free cash flow, and DKK 65 billion in capital spending, but no share repurchases are planned. It is one of the best dividend stocks for an income portfolio.
According to Insider Monkey’s Q3 database, 61 hedge funds were long Novo Nordisk A/S (NYSE:NVO), down from 67 funds in the prior quarter. Ken Fisher’s Fisher Asset Management is the leading stakeholder in the company, with 13.3 million shares valued at $1.58 billion.
12. Teck Resources Limited (NYSE:TECK)
Dividend Yield as of February 12: 0.81%
Number of Hedge Fund Holders: 68
Average Upside Potential: 22.22%
Teck Resources Limited (NYSE:TECK) ranks 12th on our list of the best dividend stocks according to analysts, with an average upside potential of 22.2% as of February 12. TECK is a Canadian mining company focused on exploring, developing, and producing natural resources. The company has made a bold move toward energy transition metals, selling off its coal division for $8.6 billion. It is a strategic business transformation. The proceeds are being used to reward shareholders, pay down debt, and fuel major copper investments, positioning the company for significant long-term growth. Teck plans to reach 800,000 tonnes of copper production per year by 2030.
Citi analyst Alexander Hacking says 2025 will be a big year for Teck Resources Limited (NYSE:TECK), with the success of its QB2 project being a major factor. While recent production looked promising, Citi maintains a Neutral rating on the stock as of January 25, due to a weak short-term copper outlook. The analyst trimmed his 2025 EBITDA forecast for the company by 31% to $3.5 billion and lowered his price target on TECK from $74 to $68. He sees potential in the company’s strong balance sheet and growth projects but warns about issues with execution and the risk related to its dual-class share structure.
On November 14, 2024, Teck Resources Limited (NYSE:TECK) announced a C$0.125 per share quarterly dividend. The dividend was distributed on December 31 to shareholders on record as of December 13.
According to Insider Monkey’s third-quarter database, 68 hedge funds held stakes in Teck Resources Limited (NYSE:TECK), compared to 69 in the last quarter. D E Shaw is the largest stakeholder of the company, with around 5 million shares worth $261 million.
11. Yum China Holdings, Inc. (NYSE:YUMC)
Dividend Yield as of February 12: 1.41%
Number of Hedge Fund Holders: 30
Average Upside Potential: 22.31%
Yum China Holdings, Inc. (NYSE:YUMC) owns, operates, and franchises restaurants in China under brands like KFC, Pizza Hut, and Taco Bell. Founded in 1987, the company is headquartered in Shanghai, China. On February 3, JPMorgan analyst Kevin Yin maintained an Overweight rating on Yum China Holdings, Inc. (NYSE:YUMC) but trimmed the price target from $60 to $59, citing strong financial health. Yin noted that despite a projected 1.6% decline in same-store sales growth for Q4 2024, the company is expected to report its eighth consecutive quarter of store traffic growth.
In 2024, the company returned $1.5 billion to shareholders, including $248 million in dividends and $1.24 billion in share buybacks, reducing its total shares outstanding by over 31 million. The company generated $714 million in free cash flow and ended 2024 with $2.8 billion in net cash. Given this strong financial standing, Yum China Holdings, Inc. (NYSE:YUMC) is increasing its quarterly dividend by 50% to $0.24 per share, bringing its payout ratio above 40% of its 2024 diluted EPS. It is one of the best dividend stocks to consider for a diversified portfolio.
According to Insider Monkey’s third-quarter database, Yum China Holdings, Inc. (NYSE:YUMC) was part of 30 hedge fund portfolios, compared to 24 in the last quarter. GuardCap Asset Management is the biggest stakeholder in the company, with nearly 12.9 million shares valued at $580.7 million.
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