In this article, we discuss 11 best global dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their performance over the years, and go directly to read 5 Best Global Dividend Stocks To Buy Now.
Investors across the globe are increasingly drawn to stocks that provide regular dividends as a strategy to secure a steady income stream. To enhance wealth accumulation, opting for investments in global dividend companies presents an advantageous approach. When investors choose global dividend companies, they are essentially selecting businesses with a widespread international presence. These companies have proven themselves capable of generating profits on a global scale, often demonstrating resilience across different markets and economic conditions. By diversifying investments across such globally positioned firms, investors not only gain exposure to a variety of industries but also mitigate risks associated with regional economic fluctuations. Companies such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and JPMorgan Chase & Co. (NYSE:JPM) stand out as notable examples of robust dividend-paying entities that boast a strong and influential global footprint.
In 2022, global dividends experienced substantial growth, registering an impressive 8.4% increase to reach a historic high of $1.56 trillion, in line with the projections outlined by the Janus Henderson Global Dividend Index. This growth was marked by record payouts in 12 countries, and a notable 88% of companies either raised or maintained their dividend payouts. However, the momentum in global dividends took a downturn in 2023. This decline was attributed to reduced special dividends and a limited number of corporations implementing significant cuts to investor remuneration. Although the comprehensive data for the entire year is yet to be disclosed, the third-quarter report from Janus Henderson revealed a 0.9% decrease in global dividends to $421.9 billion during that period. As a consequence of these developments, there was a slight adjustment to the 2023 dividend forecast, with the estimate revised to $1.63 trillion from the previous projection of $1.64 trillion. Despite this marginal reduction, the forecasted figure still represents a record-breaking amount, showcasing a 4.4% increase from the global dividends recorded in 2022.
Despite a decline in worldwide dividend payouts, experts anticipate a potential resurgence of dividend stocks in the coming year. The yields experienced a decline towards the end of 2023, and there is a possibility of further decreases if the Federal Reserve decides to reduce interest rates. The outlook suggests that despite the prevailing challenges, dividend stocks might see a rebound in the future. Larry Adam, chief investment officer at Raymond James, expressed a preference for dividend stocks within sectors such as technology and healthcare due to their growth potential. Unlike the conventional defensive categories like utilities, he emphasized the importance of investing in dividend stocks that exhibit growth qualities. According to Adam, his firm specifically focuses on dividend stocks that not only present favorable valuations but also demonstrate the capability to sustain their growth over time.
Mr. Adam's inclination toward dividend growth stocks aligns with historical evidence indicating their consistent outperformance. Looking at the Russell 1000 index, companies that increased their dividends exhibited an average stock price outperformance of 3.1% in the six months following the announcement of the dividend increase, as per Morgan Stanley data from 2014 onwards. In contrast, companies that reduced their dividends experienced an underperformance of 4.7% in stock prices during the same six-month period.
Expanding on these points, we will explore the best global dividend stocks in this article.
For this list, we scanned Insider Monkey’s database of 910 hedge funds for the third quarter of 2023 and picked companies that operate internationally. These companies operate on an international scale, conducting business and generating revenue across various countries and regions. We specifically chose companies from this list that regularly pay dividends to shareholders and narrowed it down further to 11 companies that have consistently increased their dividend payments for at least 10 years in a row. The stocks are ranked in ascending order of the number of hedge funds having stakes in them at the end of Q3. Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). That’s why we pay very close attention to this often-ignored indicator.
11. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 53
International Business Machines Corporation (NYSE:IBM) is a multinational technology and consulting company with a diverse range of products and services. The company offers a quarterly dividend of $1.66 per share and has a dividend yield of 4.00%, as recorded on January 16. It is one of the best dividend stocks on our list as the company has been growing its dividends for the past 28 years.
In addition to IBM, Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and JPMorgan Chase & Co. (NYSE:JPM) are also some of the most prominent global dividend stocks.
At the end of the third quarter of 2023, 53 hedge funds tracked by Insider Monkey owned stakes in International Business Machines Corporation (NYSE:IBM), up from 51 in the previous quarter. These stakes have a total value of more than $843 million.
NIKE, Inc. (NYSE:NKE) is a global athletic apparel and footwear company. It is one of the world's largest and most recognizable sports and lifestyle brands. The company offers a quarterly dividend of $0.37 per share, having raised it by 8.8% in November this year. Through this increase, the company stretched its dividend growth streak to 22 years, which makes NKE one of the best dividend stocks globally. As of January 16, the stock has a dividend yield of 1.41%.
As of the end of Q3 2023, 69 hedge funds in Insider Monkey's database reported having stakes in NIKE, Inc. (NYSE:NKE), down slightly from 70 in the preceding quarter. The total value of these stakes is over $3.47 billion. With roughly 10 million shares, Fisher Asset Management was the company's leading stakeholder in Q3.
Pfizer Inc. (NYSE:PFE) is a multinational pharmaceutical and biopharmaceutical company. It is involved in the research, development, and manufacturing of a wide range of pharmaceutical drugs. In December 2023, the company announced its 14th consecutive annual dividend increase. It currently pays a quarterly dividend of $0.42 per share and has a dividend yield of 5.85%, as of January 16.
At the end of September 2023, 73 hedge funds owned investments in Pfizer Inc. (NYSE:PFE), which remained unchanged from the previous quarter, according to Insider Monkey's database. These stakes are worth over $2.4 billion in total.
The Procter & Gamble Company (NYSE:PG) is next on our list of the best dividend stocks with global operations. The multinational consumer goods corporation offers a wide range of product categories, and its portfolio includes numerous well-known brands. On January 9, the company declared a quarterly dividend of $0.9407 per share, which was consistent with its previous dividend. It holds a 67-year track record of consistent dividend growth. The stock's dividend yield on January 16 came in at 2.52%.
According to Insider Monkey's database of Q3 2023, 75 hedge funds owned investments in The Procter & Gamble Company (NYSE:PG), up from 74 in the previous quarter. These stakes have a total value of over $5.7 billion. Among these hedge funds, Fisher Asset Management was the company's largest stakeholder.
Johnson & Johnson (NYSE:JNJ) is a diversified global healthcare company with operations in several key segments of the healthcare industry. The company is involved in pharmaceuticals, medical devices, and consumer health products. In the third quarter of 2023, it generated over $9.3 billion through international sales and its total revenue for the quarter amounted to over $21.3 billion. Approximately $14 billion of the company's total revenue is attributed to the sales generated by its innovative medicine segment.
Johnson & Johnson (NYSE:JNJ), one of the best dividend stocks on our list, has raised its dividends for 61 years in a row. The company's quarterly dividend comes in at $1.19 per share and has a dividend yield of 2.96%, as of January 16.
The number of hedge funds tracked by Insider Monkey owning stakes in Johnson & Johnson (NYSE:JNJ) stood at 84 in the third quarter of 2023, compared with 88 in the previous quarter. These stakes have a total value of over $4.1 billion.
Eli Lilly and Company (NYSE:LLY) is a multinational pharmaceutical company that engages in the discovery, development, manufacture, and sale of a wide range of pharmaceutical products. The company announced a 15% hike in its quarterly dividend on December 8 to $1.30 per share. This marked its 10th consecutive year of dividend growth, placing LLY as one of the best dividend stocks on our list. As of January 16, the stock has a dividend yield of 0.82%.
LLY can be added to global dividend stock portfolios alongside Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and JPMorgan Chase & Co. (NYSE:JPM).
As of the third quarter of 2023, 102 hedge funds in Insider Monkey's database owned stakes in Eli Lilly and Company (NYSE:LLY), growing from 87 in the previous quarter. The consolidated value of these stakes is over $9 billion.
