Top 20 FTSE 350 Dividend Paying Stocks

UPDATED JANUARY 2018: Dividend payments totalled £94 billion 2017. We reveal the top 20 dividend paying stocks in the FTSE 350

Emma Wall 30 January, 2018 | 6:08AM

Shareholders of UK companies saw a record £94.4 billion paid out in dividends last year, bolstered by a one-off special dividend from National Grid (NG.) and mining companies reinstating pay-outs.

According to the latest Dividend Monitor from Link Asset Services, dividends rose 10.4% last year compared to 2016, the fastest underlying growth rate since 2012.

FTSE 100 companies paid the bulk of the cash, distributing more than their mid-cap peers. The best paying sectors were bank and financials, paying out £21 billion, and oil, gas and energy firms, which paid out £18 billion in dividends.

The top payer was Royal Dutch Shell (RDSB) for the third year in a row – the oil firm has been the top paying UK dividend stock for seven of the last 10 years.

Overall, 13 sectors raised their dividends year-on-year in 2017, compared to six that saw them fall, a winning year for UK shareholders.

But the tide has already started to turn; much of 2017’s record figure was due to weak sterling. Many UK companies pay their dividends in euros or US dollars, meaning a weak pound has a tailwind effect. But in the last quarter of the year the pound strengthened – and dividend pay-outs felt the impact. Justin Cooper, chief executive of Link Market Services has warned that investors should not have as high hopes for 2018.

“Record dividends and new highs for share prices gave investors real cause for celebration in 2017, even if one-offs and exchange-rate gains were part of the story,” he said. “2018 may feel like a hangover after 2017’s excesses, as exchange gains are currently set to reverse, specials are likely to fall, and there is nothing on the horizon to match the scale of the mining bounce-back.”

The outlook for 2018 according to Link Asset Services? The FTSE 100 is likely to lag mid-caps, there will be fewer special dividends and the stronger pound is likely to have a negative impact on the total pay-out figure. But there are still reasons to be cheerful – the total pay-out prediction for the year is a not inconsequential £95.9 billion.

As part of our series The Income Investor we reveal the top 20 paying stocks in the FTSE 350. Morningstar Premium users can click on the company name for exclusive analyst research where available. All readers can click on the stock's ticker for share price and valuation information.

Please be aware this calculation is based on trailing 12-month yield – and is not reflective of a company’s ability to continue to pay a dividend. Companies with an asterisk next to their name are new entries to the list.

Provident Financial (PFG)
Yield: 19.77%
Industry: Credit Services

Inmarsat (ISAT)
Yield: 9.22%
Industry: Telecom Services

Centrica (CNA)
Yield: 9%
Industry: Utilities

Capita (CPI)
Yield: 8.82%
Industry: Business Services

Galliford Try (GFRD)
Yield: 8.35%
Industry: Residential Construction

Petrofac (PFC)
Yield: 8.08%
Industry: Oil & Gas Equipment and Services

Centamin (CEY)
Yield: 8.02%
Industry: Gold

Stagecoach Group (SGC)
Yield: 7.58%
Industry: Railroads

Saga (SAGA)*
Yield: 7.32%
Industry: Insurance – Diversified

SSE (SSE)
Yield: 7.1%
Industry: Utilities

NewRiver REIT (NRR)
Yield: 6.87%
Industry: REIT Retail

Marston’s Plc (MARS)*
Yield: 6.6%
Industry: Restaurants

Stobart Group (STOB)*
Yield: 6.52%
Industry: Trucking

AA Plc (AA.)*
Yield: 6.51%
Industry: Personal Services

Phoenix Group (PHNX)
Yield: 6.31%
Industry: Insurance Life

Go-Ahead Group Plc (GOG)*
Yield: 6.27%
Industry: Railroads

Greene King (GNK)*
Yield: 6.23%
Industry: Restaurants

Intu Properties (INTU)*
Yield: 6.15%
Industry: REIT – Retail

Kier Group Plc (KIE)*
Yield: 6.14%
Industry: Engineering & Construction

Marks & Spencer (MKS)
Yield: 6.03%
Industry: Department Store

The original version of this article was published in September 2013. The data has changed significantly since then and has been updated accordingly, most recently on January 30, 2018.

Source: Morningstar Direct

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article
Security NamePriceChange (%)Morningstar
Rating
AA PLC134.80 GBX0.90-
Capita PLC164.80 GBX2.04-
Centamin PLC118.75 GBX4.08-
Centrica PLC157.05 GBX1.16
Galliford Try PLC914.51 GBX-0.05-
Go-Ahead Group (The) PLC1,627.00 GBX-0.06-
Greene King PLC636.80 GBX1.14-
Inmarsat PLC606.00 GBX10.58-
Intu Properties PLC192.65 GBX1.37-
Kier Group PLC994.14 GBX1.29-
Marks & Spencer Group PLC297.10 GBX1.40-
Marston's PLC101.50 GBX3.68-
National Grid PLC833.00 GBX1.10
NewRiver REIT PLC270.00 GBX-0.18-
Petrofac Ltd564.01 GBX3.11-
Phoenix Group Holdings779.50 GBX1.70-
Provident Financial PLC636.38 GBX1.69-
Royal Dutch Shell PLC B2,705.76 GBX3.39
Saga PLC127.30 GBX0.55-
SSE PLC1,339.50 GBX0.49
Stagecoach Group PLC135.10 GBX2.04-
Stobart Group Ltd241.43 GBX-2.84-
About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk