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 Siemens Aktiengesellschaft (XETRA:SIE.DE) 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.
At Insider Monkey, we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
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Siemens Aktiengesellschaft (XETRA:SIE.DE)
Dividend Yield as of February 6: 2.51%
Number of Hedge Fund Holders: N/A
Siemens Aktiengesellschaft (XETRA:SIE.DE), headquartered in Munich, Germany, is a global technology company that operates through five main segments – Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services. The company provides automation systems, industrial software, AI-driven solutions for factories and production lines, energy-efficient buildings, renewable energy solutions, rail transport and infrastructure, medical imaging devices, diagnostic tools, and investment, leasing, and financing solutions.
On February 5, Siemens Mobility received its first order for Vectron locomotives with battery modules, allowing them to operate short distances without overhead power lines. This eco-friendly innovation reduces emissions and improves logistics efficiency. JeMyn AG, affiliated with Widmer Rail Services, is the client who ordered the Vectron locomotives with battery modules, with delivery set for 2027. The battery module enables efficient shunting operations without additional locomotives, resulting in cost efficiency and sustainability.
2024 was a strong financial year for Siemens Aktiengesellschaft (XETRA:SIE.DE), supported by high demand for electrification, transportation, and industrial software. Although automation faced challenges in 2024, Siemens delivered record profits for the year. The company also acquired Altair for $10 billion in October 2024, with the intention of strengthening its position in industrial software and AI. Additionally, Siemens completed the sale of Innomotics, securing a €2.0 billion gain to be reflected in fiscal 2025.
For fiscal 2024, Siemens Aktiengesellschaft (XETRA:SIE.DE) reported €9.5 billion in free cash flow. The company aims to follow a disciplined capital allocation strategy, focusing on targeted investments for profitable growth. Siemens raised its dividend to €5.20 per share from €4.70 in 2023, offering a 2.5% dividend yield. It is one of the best dividend stocks, ranking 7th on our list.
Overall, SIE.DE ranks 7th on our list of best annual dividend stocks to buy now. Overall, SIE.DE ranks first on our list of the best annual dividend stocks. While we acknowledge the potential of SIE.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 MBG.DE 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.