Top FTSE Dividend Paying Stocks

UPDATED February 2021: Yields have pushed back up again after January's stock market pullback, while Glaxo had announced big changes to its dividend policy

James Gard 9 February, 2021 | 8:00AM

Pounds

UK earnings season is cranking up again and dividend paying companies will be laying out plans for this year, which investors hope will include rising or restored dividends after a 2020 of chaos. There are promising signs from the likes of Tesco (TSCO), which is poised to pay a £5 billion special dividend, and Shell (RDSB), which has just raised its recent quarterly dividend after its first cut since WW2 last year. Banks are poised to restart their payouts too this year, which should boost the overall pot available to UK investors. Still, it’s two steps forward and one step back in terms of dividends, with some formerly reliable payers such as GlaxoSmithKline announcing steep cuts ahead.

The pullback in global equity markets at the start of the year has nudged up yields in our monthly list of top UK dividends for the start of February, with dividend-paying value stocks out of favour once again after a promising end to 2020. Wide-moat GlaxoSmithKline (GSK), which has held the number one position on our list since October 2020, has hit 6% in terms of its forward yield after a further dip in its share price at the start of the year. This follows a 20% loss last year despite the surge in interest in vaccine-producing companies.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BAE Systems PLC485.50 GBP0.00
Bunzl PLC2,261.00 GBP0.00
ConvaTec Group PLC186.70 GBP0.00
Diageo PLC2,942.00 GBP0.00
EVRAZ PLC555.80 GBP0.00
Experian PLC2,383.00 GBP0.00
Ferguson PLC8,676.00 GBP0.00
GlaxoSmithKline PLC1,214.80 GBP0.00
Intertek Group PLC5,458.00 GBP0.00
Johnson Matthey PLC3,113.00 GBP0.00
London Stock Exchange Group PLC9,512.00 GBP0.00
Pearson PLC756.20 GBP0.00
Reckitt Benckiser Group PLC5,970.00 GBP0.00
RELX PLC1,731.00 GBP0.00
Schroders PLC3,568.00 GBP0.00
Smith & Nephew PLC1,409.50 GBP0.00
Unilever PLC3,920.00 GBP0.00

About Author

James Gard  is content editor for Morningstar.co.uk

 

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