Top 3 International Names Offering High-Dividend Yields

While U.S. stocks are often among the most popular for dividend investors, there is considerable value to be found among international stocks at the moment.

Investors can find dividend stocks across multiple market sectors, such as energy and healthcare, in which international stocks have higher yields and lower valuations than their U.S.-based peers.

In this article, we will cover three high-yield international dividend stocks that could provide investors with a powerful combination of high income alongside long-term growth.

1. BP plc (BP)

BP BP is one of the largest oil and gas corporations in the world based on its $76 billion market cap. It is a fully-integrated company and operates in two segments: upstream and downstream (mostly refining).

In mid-February, BP reported financial results for the fourth quarter of fiscal 2024. Refining margins contracted sharply off abnormally high levels in the prior year’s quarter, as the tailwind from the Ukrainian crisis faded. In addition, results were hurt by significant turnaround activity.

As a result, earnings-per-share declined 59%, from $1.07 to $0.44, and missed the analysts’ consensus by $0.01. BP has beaten the analysts’ consensus in 11 of the last 16 quarters and has reduced its debt in 16 of the last 19 quarters. BP has stated that its dividend is sustainable even at a Brent price of $40.

The management of BP is very shareholder friendly, in the sense that the company prioritizes the dividend within the capital allocation program. The dividend is clearly a top priority for BP’s management team, but the 50% cut in 2020 was warranted due to the debt load of BP and the uncertainty of the coronavirus pandemic.

BP stock also appears to be undervalued. BP has traded at an average price-to-earnings ratio of 9.2 over the last decade. BP is now trading at a price-to-earnings ratio of 10 based on 2025 expected EPS. We believe that a fairer valuation multiple for BP is around 12.0. Therefore, valuation expansion could be an additional catalyst for shareholder returns.

We view the dividend as fairly safe, particularly given the drastic reduction of the debt of BP in the last three years. BP stock currently yields 5.9%.

3. Sanofi SA (SNY)

Sanofi SNY, a global pharmaceutical leader, incorporated in 1994. The company develops and markets a variety of therapeutic treatments and vaccines. Pharmaceuticals account for about 72% of sales, vaccines make up about 15% of sales and consumer healthcare contributing the remainder of sales.

Sanofi is truly a global leader, with a third of sales coming from the U.S., a little more than a quarter coming from Western Europe, and the remainder of sales coming from emerging markets and the rest of the world. Sanofi produces annual revenues of about $49 billion.

Sanofi is incorporated in France, but U.S. investors have access to the company through an American Depositary Receipt, or ADR. Two ADR shares equal one share of the underlying company.

On January 30, 2025, Sanofi announced fourth quarter and full-year results for the period ending December 31, 2024. For the quarter, revenue declined 7.4% to $11 billion, which was $94 million less than expected. The company’s earnings-per-share per ADR of $0.68 compared unfavorably to $0.90 in the prior year and $0.06 below estimates.

For the year, revenue grew 3.4% to $48.4 billion while earnings-per-share per ADR of $4.11 compared to $4.40 in 2023. Fourth quarter revenue grew 10.3% as currency exchange weighed on results.

Dupixent, which treats patients with moderate-to-severe asthma, grew 16% due to growth across indications and geographies. The product is approved for use in adults in more than 60 countries and in adolescents in about 20 countries. Sanofi estimates that the product can be launched in about 50 additional countries. More than 1 million patients worldwide have been prescribed the product.

Vaccine revenue improved 10.8% due to demand for Beyfortus and Polio/Pertussis/Hib vaccines and boosters.

The company expects earnings-per-share to grow at least low single digits, up from a prior forecast of stable. Its pharmaceutical segment should continue to show growth in the coming years, leading to growth in earnings and dividends.

The fluctuations in dividends received for the ADR is due largely to currency exchanges, as Sanofi has increased its dividend for 29 consecutive years in its local currency. Sanofi pays an annual dividend, usually in May or June. SNY stock has a safe dividend which yields 3.5%.

3. Unilever plc (UL)

Unilever UL is one of the largest consumer goods companies in the world, producing and marketing about 400 brands in nearly 200 countries. Well-known brands include Ben & Jerry’s, Q-tips, Vaseline, Axe, Dove, Hellmann’s, Knorr and many more. Its products are used by more than 3 billion people every day. It has a market capitalization of $137 billion.

In mid-February, Unilever reported results for the full fiscal 2024. It grew its underlying sales 4.2% over the prior year thanks to 1.3% price hikes and 2.9% volume growth. The 30 most powerful brands grew their sales 5.3% and thus comprised more than 75% of total sales. The strong brands of the company have enabled it to raise prices aggressively without a significant effect on volume in the last three years.

Unilever provided guidance for sales growth of 3% to 5% in 2025 and a modest improvement in operating margin (versus 18.4% in 2024), in line with its long-term guidance.

Unilever has stated that it will pursue growth aggressively in some emerging markets in Asia, such as India, China, Vietnam, Bangladesh, Pakistan and Myanmar. These markets are characterized by rapidly growing populations and an emerging middle class and thus they are very promising. Management has provided guidance for 3% to 5% adjusted annual revenue growth in the long run.

Unilever has a significant competitive advantage, namely the strength of its brands. The company generates about 80% of its sales from the number one or number two position in its markets. Thanks to the strength of its brands and its great execution in its growth initiatives, Unilever has always been more resilient to recessions than the vast majority of stocks. As a result, Unilever has been able to raise its dividend for 42 consecutive years in its home currency.

UL currently yields 3.1%.

At the time of publication, Ciura had no positions in any securities mentioned.