Top Performing Stocks Offering High Dividend Returns This Year
In the ever-evolving global market, three companies - BAE Systems, Tenaris, and Meier Tobler - are making significant strides, each operating in different sectors and facing unique prospects. Though the focus of this analysis is on the current conditions and expectations as of mid-2025, these insights offer a glimpse into how these companies have performed and are positioned.
BAE Systems, a leading defense company, has seen remarkable growth. Its share price has surged, up over 65% year-to-date and nearly 375% over the past few years, trading near all-time highs. The company boasts a record order backlog (£77.8 billion), ensuring multi-year revenue visibility and underpinning reliable cash flows. Dividends have grown, with a 10% increase last year and expectations of further increases as free cash flow is forecast to exceed £1.1 billion this year and £5.5 billion by 2026. Despite trading at a premium, with a forward P/E of about 24–27, geopolitical risks and robust defense spending in major markets support continued business. However, the share price may be due for a pullback given technical indicators and its rapid rise.
Tenaris, a steel pipe manufacturer, benefits from global industrial demand, infrastructure spending, and energy markets (oil and gas). In 2022, Tenaris thrived due to rising oil prices, increased drilling activity, and post-pandemic infrastructure investments. While its outlook is more sensitive to economic cycles and the trajectory of the oil and gas sector, its strong performance in 2022 underscores its potential for continued growth.
Meier Tobler, a Swiss industrial or manufacturing firm, lacks specific financial data. However, if it is representative of a typical Swiss industrial company, its performance would depend on global demand for machinery, exports, and regional economic conditions. Exposure to supply chain disruptions, currency fluctuations, and global economic cycles would impact performance, similar to other industrials.
In conclusion, BAE Systems stands out as a resilient performer with clear drivers of growth, while Tenaris and Meier Tobler face greater uncertainties tied to the broader economy and their respective sectors. BAE Systems is one of the top-performing dividend stocks so far this year, with a year-to-date (YTD) increase of 45% and a dividend yield of 3.5%. Tenaris, originally founded in Mexico and now based in Luxembourg, has experienced a YTD increase of 62% and a dividend yield of 3.1%. Meier Tobler, having recovered from a crash in 2018, is aiming for new highs, with a YTD increase of 66% and a dividend yield of 4.1%. As the world undergoes a green transformation, Meier Tobler, a manufacturer of heating and climate technology, is likely to have good prospects in the coming years.
- In regards to financial performance, BAE Systems, the leading defense company, demonstrates resilience with a significant 65% year-to-date increase and a record order backlog of £77.8 billion, indicating promising cash flows and potential future growth.
- Tenaris, a steel pipe manufacturer, benefits from global economic conditions, particularly growth in the oil and gas sector, as shown by its 62% year-to-date increase, though its performance may be influenced by economic cycles and the trajectory of oil prices.
