We recently published a list of 10 Best Annual Dividend Stocks To Buy Now. In this article, we are going to take a look at where Roche Holding AG (OTC:RHHBY) stands against other 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.
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Roche Holding AG (OTC:RHHBY)
Dividend Yield as of February 6: 3.33%
Number of Hedge Fund Holders: N/A
Roche Holding AG (OTC:RHHBY) was established in 1896 and is headquartered in Basel, Switzerland. The company develops treatments for cancer, autoimmune diseases, neurological disorders, respiratory conditions, and more. The company also offers in-vitro diagnostic tests, medical instruments, and digital health solutions for diseases like cancer, diabetes, and COVID-19.
On February 7, Roche’s phase III REGENCY trial found that Gazyva/Gazyvaro significantly improved renal response in lupus nephritis patients, with 46.4% achieving complete renal response (CRR) vs. 33.1% on standard therapy. The drug also reduced inflammation markers, potentially preserving kidney function. Gazyva/Gazyvaro is the first anti-CD20 monoclonal antibody in a phase III study to show CRR benefits, as published in the New England Journal of Medicine.
In 2024, Roche Holding AG (OTC:RHHBY)’s sales grew by 7% to CHF 60.5 billion. There was solid momentum across the Pharmaceuticals and Diagnostics divisions, which made up for the decline in COVID-related sales of CHF 1.1 billion. Roche’s core operating profit surged 14%, driven by higher sales, better margins, and cost efficiency. On top of that, operating free cash flow surged 34% to CHF 20.1 billion, giving Roche a strong financial position for future investments. Looking ahead, Roche expects mid-single-digit sales growth in 2025 and aims to increase its dividend for the 38th consecutive year to CHF 9.70. It is one of the best dividend stocks to consider for an income portfolio.
Overall, RHHBY ranks 6th on our list of best annual dividend stocks to buy now. Overall, RHHBY ranks first on our list of the best annual dividend stocks. While we acknowledge the potential of MBG.DE to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RHHBY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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