Top 20 FTSE 100 Dividend Paying Stocks

THE INCOME INVESTOR: The largest companies in the UK source their revenues internationally, meaning your dividend stream is boosted by global economic growth

Emma Wall 21 August, 2018 | 12:40PM

Britain’s largest companies are international players. The 100 stocks in the FTSE 100 operate on a global basis, drawing 70% of their revenues from outside of the UK. For many investors too wary to invest directly in emerging markets, buying FTSE 100 listed stocks can offer access to the emerging markets growth story, but with the comfort of a level of corporate governance and transparent shareholder dealings that are upheld in developed markets.

Income continues to be the main concern for investors in the UK – both in the run up to retirement, where dividends reinvested can significantly boost total returns, and for those that have already started drawing on their pension dividends can help supplement their post-retirement income.

FTSE 100 stocks may not offer the same potential for growth as their smaller counterparts, but broadly speaking the dividends paid by these megacaps are more secure than those paid by small and medium sized companies.

Using Morningstar Direct we screened for the top 20 dividend-paying stocks in the FTSE 100. Please be aware this is a 12-month historic yield, and so is no indication of future pay-outs. New entries to the list are marked with an asterisk, there are three this update.

Yield: 13.43%
Industry: Steel

Persimmon (PSN)
Yield: 9.62%
Industry: Residential Construction

Centrica (CNA)
Yield: 8.29%
Industry: Utilities

Vodafone Group (VOD)
Yield: 7.55%
Industry: Telecom Services

Yield: 7.5%
Industry: Utilities

BT Group (BT.A)
Yield: 6.81%
Industry: Telecom Services

Standard Life Aberdeen (SLA)
Yield: 6.79%
Industry: Insurance – Life

Marks & Spencer (MKS)
Yield: 6.2%
Industry: Department Store

Legal & General Group (LGEN)
Yield: 6.16%
Industry: Insurance – Life

Rio Tinto (RIO)
Yield: 6.09%
Industry: Industrial Metals & Mining

Imperial Brands (IMB)
Yield: 5.8%
Industry: Tobacco

Aviva (AV.)
Yield: 5.8%
Industry: Insurance

Royal Dutch Shell (RDSB)
Yield: 5.6%
Industry: Oil & Gas Integrated

Micro Focus International (MCRO)*
Yield: 5.54%
Industry: Software – Application

National Grid (NG.)
Yield: 5.53%
Industry: Utilities

BP (BP.)
Yield: 5.44%
Industry: Oil & Gas Integrated

United Utilities (UU.)
Yield: 5.53%
Industry: Utilities – Regulated Water

Lloyds Banking Group (LLOY)*
Yield: 5.17%
Industry: Banks – Regional – Europe

Royal Mail (RMG)
Yield: 5.17%
Industry: Integrated Shipping

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 August 21, 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
BP PLC522.10 GBX-0.23
BT Group PLC238.00 GBX-0.38
Centrica PLC134.92 GBX-1.62
EVRAZ PLC466.60 GBX0.13-
GlaxoSmithKline PLC1,495.20 GBX-0.23
Imperial Brands PLC2,487.00 GBX0.18
Legal & General Group PLC257.90 GBX0.35-
Marks & Spencer Group PLC286.40 GBX-1.07-
Micro Focus International PLC1,499.90 GBX-0.01-
Pearson PLC933.53 GBX0.88
Rio Tinto PLC3,920.71 GBX-0.11
Royal Dutch Shell PLC B2,403.00 GBX0.59
SSE PLC1,127.11 GBX-0.56
Standard Life Aberdeen PLC271.50 GBX0.67-
Vodafone Group PLC149.16 GBX-0.12

About Author

Emma Wall

Emma Wall  is Senior International Editor for Morningstar