We recently compiled a list of 12 Best International Dividend Stocks to Buy Now. Linde plc (NYSE:LIN) tops our list, so we have analyzed the stock in detail. As we head into the second half of 2024, investors are gearing up for the stock market’s direction for the rest of the year. The first quarter of 2024 saw the strongest performance in the broader market since 2019. However, uncertainty looms over whether this trend will continue. With geopolitical tensions, high interest rates, and rising prices, investors are seeking ways to diversify their portfolios. International stocks, particularly those that pay dividends, are becoming more appealing.
Dividend stocks are essential for a diversified portfolio, representing nearly 34% of the market’s overall return from 1940 to 2023, with even better performance during periods of high inflation. While American companies are known for paying dividends, foreign companies are not far behind. Expanding globally can help mitigate challenges faced in the US, such as tighter regulations for European banks resulting in lower interest-rate risk. In fact, countries like Norway, Hungary, Romania, and Iceland offer some of the highest dividend yields.
In 2023, Europe saw significant growth, with record dividend payouts increasing by 10.4% compared to the previous year. Annual dividends for the region grew from nearly $169 billion in 2020 to $301 billion in 2023. European dividends per share are expected to grow at a CAGR of 8.5% by 2025. European and Japanese corporate leaders are striking a balance between investing in capital expenditures and returning cash to shareholders through dividends.
We have compiled a list of the best international dividend stocks for our readers, focusing on companies with a high number of hedge fund investors. Linde plc (NYSE:LIN) tops our list, with 65 hedge fund holders. The multinational industrial gases and engineering company has a 29-year track record of consistent dividend growth, currently offering a dividend yield of 1.29%. Linde plc’s diverse customer base across industries like chemicals, electronics, healthcare, and energy reduces risks associated with a decline in any single sector.
Linde plc’s revenue slightly declined in the first quarter of 2024, but its operating profit showed growth, indicating efficient cost management. The company benefits from a lack of significant competition, with strong cash flow and a focus on growth opportunities in the hydrogen sector. Since its merger with Praxair in 2018, Linde plc has seen steady earnings and returns, outperforming the market. The stock is held in 65 hedge fund portfolios, with a consolidated value of nearly $4 billion.
Overall, Linde plc ranks as the best international dividend stock. For more dividend stock options, you can explore our list of 12 Best International Dividend Stocks to Buy Now. While dividend stocks hold potential, AI stocks are believed to offer higher returns in a shorter timeframe. If you’re interested in a promising AI stock like NVIDIA but at a lower valuation, check out our report on the cheapest AI stock.
Disclosure: None.