Best 10 Global Dividend Stocks To Buy Now
Numerous eminent American companies do business abroad as a result of decades of growing globalization. Renowned businesses like Microsoft Corporation (NASDAQ:MSFT) sell Windows in the US, Europe, and China. As such they pay dividend stocks.
To try to expand their market sizes, the top businesses have gone global. Companies have more prospective customers and revenue prospects with higher market sizes. There is potential for more profitability with increased prospective revenue.
The fact that many markets have tight relations to the United States aids in this process. For instance, the United States has long-standing alliances with several important European nations. Even nations like China have developed strong ties with the United States, resulting in trade between the two nations reaching over $560 billion in total in 2020. The strong ties make conducting business simpler and aid in the movement of wealth.
The U.S. currency is another factor that encourages many American businesses to conduct business abroad. Since the U.S. dollar is the main reserve currency in the world, many developing nations want it to grow. As a result, the purchasing power of the U.S. dollar is typically higher in developing nations. As a result, because the U.S. dollar has greater purchasing power, major U.S. corporations may frequently expand in emerging economies at a lower cost.
Finally, because there is frequently less rivalry in emerging markets than there is in the U.S. market, many top U.S. corporations expand internationally. It is simpler to increase market share and generate profits when there is less competition.
Given the increasing inflation, the Fed’s interest rate increases, and the conflict between Russia and Ukraine, 2022 has been a difficult year for the markets. The S&P 500 has down 19.5% year to date and the NASDAQ has dropped 29.3% as a result of the headwinds.
It might be a good idea for investors to have a well-diversified portfolio of stocks across many different industries given the uncertainty.
Here are 10 firms in the dividend industry that you should think about because they operate on a worldwide scale and provide a tempting yield.
Methodology: 10 Best Global Dividend Stocks
For our selection of the top 10 global dividend stocks to buy right now, we selected 10 companies with strong earnings potential, international operations, and dividend payouts. Based on the quantity of hedge funds in our database that owned shares of the same stocks at the end of Q2 2022, we selected the top 10 dividend stocks using the collective expertise of hedge funds.
The 10 Best Global Dividend Stocks To Consider
- Pfizer Inc. (NYSE:PFE)
Dividend Yield as of 10/25: 3.51%
Number of Hedge Fund Holders: 70
Pfizer Inc. (NYSE:PFE) is a very international business. According to Statista, Pfizer Inc. (NYSE:PFE) had sales in the United States of $29.75 billion in 2021, $18.3 billion in Developed Europe, $12.5 billion in Developed Rest of World, and $20.7 billion in Emerging Markets.
Pfizer Inc. (NYSE:PFE), with a dividend yield of 3.51% as of 10/25, is likewise a dividend stock. The world and stockholders can both profit if Pfizer Inc. (NYSE:PFE) outperforms expectations in terms of innovation.
At the end of the second quarter, many hedge funds in our database held Pfizer Inc. (NYSE:PFE), another global dividend company, alongside Microsoft Corporation (NASDAQ:MSFT), Visa Inc. (NYSE:V), and Mastercard Incorporated (NYSE:MA). - Eli Lilly and Company (NYSE:LLY)
Dividend Yield as of 10/25: 1.12%
Number of Hedge Fund Holders: 70
Eli Lilly and Company (NYSE:LLY), like Pfizer Inc. (NYSE:PFE), distributes drugs in the U.S., EU, Japan, China, and other countries, making it a somewhat worldwide company.
In terms of its stock, Eli Lilly & Company (NYSE:LLY) has also had a rather successful year. While the market as a whole has experienced significant losses in 2022, shares of Eli Lilly and Company (NYSE:LLY) have increased by more than 27% year to far. Because analysts anticipate significant future growth in profits per share for Eli Lilly and Company (NYSE:LLY), the stock is close to reaching an all-time high. The company’s dividend may increase if EPS rises. The dividend yield on shares of Eli Lilly and Company (NYSE:LLY) as of 10/25 is 1.12%. - The Procter & Gamble Company (NYSE:PG)
Dividend Yield as of 10/25: 2.79%
Number of Hedge Fund Holders: 71
The Procter & Gamble Company (NYSE:PG) is a multinational corporation with operations in more than 180 nations. The Procter & Gamble Company (NYSE:PG) still has significant earning capacity, despite the fact that the strong U.S. dollar isn’t favorable for its short-term overseas profitability. The Procter & Gamble Company (NYSE:PG) is still a dividend company because it has increased its yearly dividend for 66 years running and has a dividend yield of 2.79% as of 10/25.
On 10/20, Barclays’ Lauren Lieberman increased her price target for The Procter & Gamble Company (NYSE:PG) from $139 to $145 while maintaining a “Overweight” rating. She did so because the company’s fiscal first quarter results were better than anticipated and because management commentary had boosted sentiment. - NIKE, Inc. (NYSE:NKE)
Dividend Yield as of 10/25: 1.33%
Number of Hedge Fund Holders: 72
NIKE, Inc. (NYSE:NKE) is a global firm with approximately 41% of total sales occurring in North America. However, the company has recently experienced certain setbacks brought on by both general and industry-specific headwinds. In a letter dated Q3 2022, Ensemble Capital described the current challenges faced by NIKE, Inc. (NYSE:NKE).
Despite facing challenges, NIKE, Inc. (NYSE:NKE) could yet see future earnings growth given the growing world population and rising level of wealth.
The dividend yield and payout ratio for NIKE, Inc. (NYSE:NKE) shares as of 10/25 are 1.33% and 33.2%, respectively. As a result of the relatively low payout ratio, NIKE, Inc. (NYSE:NKE) may grow its dividend in the future without experiencing a significant increase in earnings. - Johnson & Johnson (NYSE:JNJ)
Dividend Yield as of 10/25: 2.65%
Number of Hedge Fund Holders: 83
Given that it has operations in more than 175 nations, Johnson & Johnson (NYSE:JNJ) is a truly international business.
Due to its 60-year streak of dividend increases, Johnson & Johnson (NYSE:JNJ) is a dividend aristocrat. Johnson & Johnson (NYSE:JNJ) shares now yield 2.65% as a result of the dividend increases. In the long run, the earnings per share of Johnson & Johnson (NYSE:JNJ) have tended to rise with sporadic dips.
Johnson & Johnson (NYSE:JNJ), which had adjusted EPS of $2.55 versus the estimate of $2.48, had a relatively robust third quarter in terms of earnings per share. Compared to the average estimate of $23.34 billion, sales for the quarter were $23.8 billion. Johnson & Johnson (NYSE:JNJ) anticipates sales of $93 billion to $93.5 billion and adjusted operating EPS of $10.70 to $10.75 for FY22.
At the end of Q2 2022, many hedge funds in our database held shares in companies like Johnson & Johnson (NYSE:JNJ), Mastercard Incorporated (NYSE:MA), Visa Inc. (NYSE:V), and Microsoft Corporation (NASDAQ:MSFT), which are all international dividend stocks. - JPMorgan Chase & Co. (NYSE:JPM)
Dividend Yield as of 10/25: 3.26%
Number of Hedge Fund Holders: 104
Given its sizable capital markets operation, JPMorgan Chase & Co. (NYSE:JPM) is one of the top American banks that is also global. Even though JPMorgan Chase & Co. (NYSE:JPM) and other banks may experience difficulties if the American economy contracts in 2023, lending out cash, a crucial economic activity carried out by the top banks, can still be rather profitable in the long run.
From 2010 through 2021, JPMorgan Chase & Co.’s (NYSE:JPM) net income more than doubled since the Great Recession. As a result of the expansion, JPMorgan Chase & Co.’s (NYSE:JPM) earnings per share now more than triple the dividend it pays out. In 2023, share buybacks might also be an option. JPMorgan Chase & Co. (NYSE:JPM) shares currently yield 3.26% as of 10/25. - Apple Inc. (NASDAQ:AAPL)
Dividend Yield as of 10/25: 0.6%
Number of Hedge Fund Holders: 128
Given that it sells its iPhones, iPads, and other profitable items in numerous nations throughout the world, Apple Inc. (NASDAQ:AAPL) is a worldwide corporation.
Given how much money the firm makes each year, Apple Inc. (NASDAQ:AAPLdividend )’s has a lot of room to expand even though it doesn’t now have the highest dividend yield at about 0.6%. Given how many Apple Inc. (NASDAQ:AAPL) customers are devoted and how inventive the business is, Apple Inc. (NASDAQ:AAPL) has the ability to expand in the future. - Mastercard Incorporated (NYSE:MA)
Dividend Yield as of 10/25: 0.63%
Number of Hedge Fund Holders: 137
A U.S.-based corporation called Mastercard Incorporated (NYSE:MA) has a large number of clients who utilize its payment systems abroad. Although the strong U.S. dollar causes Mastercard Incorporated (NYSE:MAoverseas)’s earnings to be smaller in U.S. dollars, the company still has significant and quality earnings potential, which increases the likelihood that its dividend will grow in the future. Mastercard Incorporated (NYSE:MA) shares currently yield 0.63% as of 10/25. - Visa Inc. (NYSE:V)
Dividend Yield as of 10/25: 0.77%
Number of Hedge Fund Holders: 166
Similar to Mastercard Incorporated (NYSE:MA), Visa Inc. (NYSE:V) is an American business with a sizable international clientele.
Visa Inc. (NYSE:V) reported a 10% increase in payments during its fiscal fourth quarter and a 12% increase in processed transactions. Sales increased to $7.79 billion from $6.56 billion, while adjusted earnings per share came in at $1.93, up 19% year over year. The dividend from Visa Inc. (NYSE:V) is fairly secure given its earnings potential. Shares of Visa Inc. (NYSE:V), which currently yield 0.77%, are expected to be higher on 10/26 as a result of the company’s recent 20% increase in its quarterly dividend to $0.45 per share. - Microsoft Corporation (NASDAQ:MSFT)
Dividend Yield as of 10/25: 1.09%
Number of Hedge Fund Holders: 258
Given that it sells its software globally, Microsoft Corporation (NASDAQ:MSFT) is a worldwide business.
Furthermore, Microsoft Corporation (NASDAQ:MSFT) is a dividend-paying stock. Microsoft Corporation (NASDAQ:MSFT), which has a history of EPS growth, has increased its yearly dividend for 19 years in a row. Given that Microsoft Corporation’s (NASDAQ:MSFT) share price has also increased significantly during the previous 19 years, the company’s dividend yield as of 10/25 is only 1.09%. Even though it might seem low, the corporation still has a great deal of room to expand its dividend in the future given the growth prospects of Microsoft Corporation (NASDAQ:MSFT).
Microsoft Corporation (NASDAQ:MSFT) announced earnings per share ($2.35) for the first quarter versus the consensus estimate ($2.30) and sales ($50.12 billion) versus the forecasted $49.61 billion. Even if weaker-than-expected projections caused shares to decline after hours, the company still has promising long-term potential.
The number one firm on our list of the 15 Best Global Dividend Stocks To Buy Now was Microsoft Corporation (NASDAQ:MSFT), which had shares owned by 258 hedge funds in our database at the end of the second quarter.
