However, the shares trade on a PE of just 7 and generous pay-outs to shareholders will continue. A share buyback programme of $1.2 billion has been announced, while a special dividend payment of $1 billion is due for investors next year. Glencore received $1 billion in cash, along with $3 billion in shares from Bunge the sale of its share in Viterra to Bunge. Glencore shares have been hit by the economic slowdown in China and the fall in metals and commodity prices globally. The shares are down 7% for the year to 432p and have been volatile. Half-year revenues fell by 20% to $107.4 billion ($135 billion in 2022), while net income shrank by 62% to $4.6 billion ($12.1 billion in 2022).
- One company on our list, Johnson Matthey, is to be demoted from the FTSE 100 as part of the quarterly FTSE Russell reshuffle.
- Ex-dividend trading is on September 7, with a scheduled disbursement on October 6.
- This Anglo-Australian multinational is the world’s second largest metals and mining corporation, producing copper, gold, uranium and diamonds alongside iron ore.
This list also takes into account the 5-year average dividend growth rate, includes companies from either the S&P 500 or Russell 2000, and is updated weekly. Rio Tinto has made some high-profile dividend payments in recent years after benefitting from the increase in iron ore prices. It is one of the top dividend etoro paying stocks in the UK, and it could benefit in future from rising commodities prices. To see how Rio Tinto could benefit you, be sure to check out our trading guides. The top dividend paying stocks in the UK include M&G, Imperial Brands, Polymetal, British American Tobacco and mining giant Rio Tinto.
Aviva – estimated dividend yield 8.48%
It’s also important not to pick companies based on dividend yield alone, since dividends can be reduced or increased. That has the sector offering some attractive payouts from companies with excellent track records of paying dividends. Trading financial products carries a high risk to your capital, particularly when engaging in leveraged transactions such as CFDs.
- Legal & General is the second largest institutional investment management firm in Europe after BlackRock.
- Global pandemics and economic recessions can cause some businesses to struggle.
- Imperial Brands is one of the largest tobacco companies in the world when measured by market share.
- Phoenix Group is always mentioned in lists of the best dividend stocks UK.
It now has renewable energy interests in biofuels, wind power, smart grid and solar technology alongside its core oil and gas exploration, production, refining and distribution business. BP has set a goal to cut its greenhouse gas emissions to net-zero by 2050. BAT is another tobacco giant, with brands including Dunhill, Kent, review the little book that still beats the market Lucky Strike, Pall Mall and Rothmans. It is the second largest tobacco company in the world, but it is close in size to market leader Philip Morris. A dividend cover of 2 or more is seen as ideal as profits comfortably cover dividends, which should allow the company to maintain dividends if profits dip for a year or two.
One final point about dividend stocks is that to truly get the most from them requires having a long-term focus. Buying and holding these stocks over time and reinvesting the dividends gives investors the benefits of compounding. So make sure that the stocks you own are companies that are in defensive sectors that can deliver solid results no matter what is happening in the broader economy. Companies that are paying dividends are generally in mature industries.
What is the outlook for dividend-paying shares?
Debts have been brought down, subsidiaries have been sold, and shareholders are looking forward to a special dividend after payout cuts during the Covid-19 pandemic. Aviva is the market leader in the UK, and the second largest insurer in Canada, while it also has traditionally had a strong focus on growth markets in Europe and Asia. However, it has been selling off parts of the business to ensure it has a sharper focus on the UK, Ireland and Canada.
That will give it more money to pay dividends and invest in additional capital projects. The estimates applied to each of the six stocks in the text above were calculated using the most recent dividend per share divided by the share price for each company on 27th July 2020. If prices had been taken on another date, then the yield calculation would have been different. The dividend paid to shareholders is paid according to the number of shares you hold. If you buy into a stock at a price twice that of your neighbour, then their dividend yield will be twice what yours is. Weakness in the Vodafone share price can be expected to trigger buy orders from high-yield investors.
Dividend growth
Goldman Sachs recently upgraded the stock to Buy from Hold, citing a revival in network spending amid the expected reopening of offices worldwide. Phoenix Group Holdings (PHNX) is a FTSE 100 company providing insurance services, and long-term savings and retirement products. Listed in 2009, it has been steadily growing the dividend, increasing the annual dividend in the previous five years. Phoenix Group Holdings pays two dividends of equal amount each year (see PHNX dividend payment page). As an investor, it’s extremely difficult to consistently pick investments that will succeed no matter what’s happening in the world.
The company’s pharmaceutical business offers promising treatments for disease related to immunology, oncology, neuroscience, infectious diseases, pulmonary hypertension, and heart. In this article we will take a look at the 10 best dividend stocks to buy for consistent growth and income. You can skip our detailed analysis of these dividend stocks’ outlook for 2021 and the merits of dividend investing and go directly to 5 Best Dividend Stocks to Buy for Consistent Growth and Income. British American Tobacco PLC (LSE) is unlikely to appear in any ESG fund (environmental, social, governance) investment portfolio anytime soon.
Many investors know the importance of having a base of dividend stocks. These stocks provide investors with a regular source of passive income. And long-term investors who don’t need the income from dividends immediately can reinvest their dividends.
The Dividend Kings are a group of just 51 stocks that have all increased their dividends for at least 50 consecutive years. That level of dividend longevity fxpcm makes these stocks highly appealing for dividend growth investors. That could be appealing for investors seeking the top dividend stocks UK.
Consolidated Edison also recently cashed in on its commercial renewable energy business, selling it for $6.8 billion in cash. All three should continue increasing their dividends in the future despite the effect of higher rates. Powering that outlook is their heavy investments in clean energy, which should give them the fuel to grow their earnings. It takes minutes to set up an account with an online broker and start buying high-dividend stocks. It can be time well spent, allowing you to then sit back and enjoy long-term gains.
These High-Quality Dividend Stocks Are Cheaper Than They’ve Been in Years
Mr Clayton adds that Close “is strongly capitalised and the dividend is almost twice covered” with analysts forecasting growth of “mid-single digits in each of the next three years”. Close Brothers is a UK merchant bank offering banking, asset management and security trading services. Explore over 3,000 funds, 8,500 UK, US, Canadian and European shares, 1,400 ETFs and more.
Dividend ETFs or index funds offer investors access to a selection of dividend stocks within a single investment — that means with just one transaction, you can own a portfolio of dividend stocks. The fund will then pay out dividends to you on a regular basis, which you can take as income or reinvest. Dividend funds offer the benefit of instant diversification — if one stock held by the fund cuts or suspends its dividend, you can still rely on income from the others. Consumer products giant Procter & Gamble has hiked its dividend consistently in the last 64 years. Recently, Morgan Stanley named the stock as one of its top picks in the personal care sector.
Drug-store giant to close some less profitable stores as it looks to cut costs by at least $1 billion
It’s not shaping up to be a vintage year, but not a terrible one either. Despite the bump from the special, last year’s interim dividend was higher, at 60p per share. Unlike many other energy-related enterprises, Genesis just hasn’t performed remarkably well in the charts this year.