Top International Dividend Stocks Analysts Recommend for 2025 Growth

Investors are increasingly looking beyond U.S. borders for opportunities in international stocks, particularly those that offer attractive dividends. In a year where the S&P 500 has only seen a modest increase of 2%, several global companies have shown significant growth and dividend potential, prompting analysts to recommend these stocks as strong alternatives for income-focused investors.

The Vanguard FTSE All-World ex-US ETF, which tracks international stocks, reported a remarkable return of approximately 14% in 2025, compared to the lackluster performance of the S&P 500. This shift is attributed to various factors, including geopolitical tensions, fluctuating tariff policies, and changes in interest rates affecting market sentiments. Marguerita Cheng, a certified financial planner and CEO of Blue Ocean Global Wealth, noted, "If you looked at international last year, it might've underperformed, but this year, international has been a star."

Several international stocks have caught the attention of analysts for their robust performance and dividend yields. Copa Holdings, a Panamanian airline, is among the highlighted stocks. According to Savanthi Syth, an analyst at Raymond James, Copa's shares have risen over 16% in 2025, and the company boasts a dividend yield of approximately 6.3%. More than 90% of analysts rate Copa as a buy or overweight, with a consensus price target suggesting over 50% upside.

Vale, a Brazilian mining giant, has also received a favorable outlook. Nearly 60% of analysts covering Vale rate it as a buy or overweight, with a price target indicating a 32% upside. Bank of America upgraded Vale's stock in April, citing improved management and the resolution of a long-standing railway dispute as key factors in the company's positive trajectory.

Latam Airlines Group of Chile has shown impressive growth as well, with shares up 37% this year and a dividend yield of 2.7%. Morgan Stanley analyst Jens Spiess reported that traffic for Latam Airlines has increased by 9.8% in the current quarter, exceeding consensus estimates.

These companies exemplify the potential for international equities to provide both growth and income in an unpredictable market. As investors reconsider their portfolios, these dividend-paying stocks may offer stability and appealing returns in an era of economic uncertainty. The increasing interest in international stocks suggests a pivotal shift in investment strategies, as diversifying beyond U.S. markets becomes a priority for many.

Looking ahead, analysts anticipate continued volatility in U.S. markets and recommend that investors maintain a global perspective. The combination of attractive dividends and expected growth makes these international stocks worthy contenders for any investment portfolio in 2025 and beyond. As geopolitical and economic factors evolve, keeping abreast of the international market dynamics will be crucial for investors aiming to optimize their returns.