SAP Cloud Revenue Surge and China Expansion Drive Strengthen Dividend Stability

SAP SE (NYSE:SAP) is one of the 11 Best Annual Dividend Stocks to Buy According to Hedge Funds.

The increase in cloud revenue and the company’s expansion in China support its growth in the latter half of 2025.

Headquartered in Germany, SAP SE (NYSE:SAP) is a global provider of enterprise application software and software-related services. With operations in over 157 countries, the company helps businesses manage core operations across finance, human resources, supply chain, and customer experience. Its portfolio includes a range of cloud and on-premises solutions, including enterprise resource planning (ERP) and CRM.

On July 22, 2025, SAP SE (NYSE:SAP) released its Q2 2025 earnings call, which highlighted a 28% increase in cloud revenue. The company attributes this growth to strong performance in Cloud ERP Suite. Operating profit also went up by 35%. The strategic partnership with Alibaba is anticipated to expand the company’s business operations in China, supporting a strong pipeline for the second half of 2025.

As per CNN, the company gains a consensus Buy rating from 16 analysts with a strong 1-year median upside potential of 25.41%. Concerning the annual dividend, the stock offers $2.63 per share, with 32 hedge funds providing modest confidence for investors seeking a stable annual dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.