Dividend-Payers We Like to Watch

Morningstar analysts highlight some of the stocks they keep an eye on from an income point of view

Holly Cook 18 July, 2012 | 5:51PM

As part of Seeking Income Week, we’ve already drilled down into the top equity income managers’ portfolios and found their favourite UK stock picks. Now it’s time to quiz Morningstar’s own equity analysts on where they see attractive dividend potential.

Following conversations with our equity analysts about the sectors they cover, the most frequently-mentioned stocks tended to come from utilities and consumer staples–sectors often lauded for their defensive and income-paying qualities. But there were a few surprises too. Below are some of the dividend-payers that Morningstar analysts like to watch.

Pharmaceuticals
GlaxoSmithKline
(GSK) has come up time and time again this week. Morningstar OBSR’s Peter Toogood mentioned it in his video on the investing environment, as did Fidelity’s Tom Stevenson in his interview on the role of income, investing author Rodney Hobson name-checked the pharma stock repeatedly in his favourite dividend payers video, and it emerged as a top holding for some of the UK’s best UK equity income fund managers.  Glaxo shares currently yield 4.6% by Morningstar calculations.

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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
British American Tobacco PLC2,550.00 GBX1.05
GlaxoSmithKline PLC1,573.00 GBX-0.78
HSBC Holdings PLC336.70 GBX1.34
National Grid PLC923.00 GBX0.46
REXAM PLC  
Royal Dutch Shell PLC Class B1,141.40 GBX3.69
SSE PLC1,318.00 GBX0.61

About Author

Holly Cook

Holly Cook  is Managing Editor of Morningstar.co.uk

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