IMB, BATS, VOD- Blue-chip dividend stocks to consider as pay growth plunges

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Highlights

  • Compared with households in comparable countries, UK families are approximately £9,000 worse off in terms of earnings.
  • Since 2008, the productivity gap of the UK with Germany and France has nearly tripled.
  • The report also showed that pay growth in the UK has dropped below zero.

According to a survey by the London School of Economics (LSE) and think tank Resolution Foundation, UK families, compared to other countries, are approximately £9,000 worse off in terms of earnings. The research showed that the income of an average low-and-middle-earning family in the UK is a third less as compared to families in other countries on par.

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The study highlights that this gap is worse in the case of poorest households as their incomes lagged by 40% compared to the five comparable countries which include France, Germany, the Netherlands, Australia and Canada. 

According to the interim report of the Economy 2030 Inquiry by Stagnation Nation, less growth, reduced productivity and rising inequality was are few of the reasons behind the substantial income gap in the UK, which may have catastrophic consequences for households, especially the economically weaker ones.

The report also shed ligh on the pay growth in the UK has dropped below zero. Additionally, since 2008, the productivity gap of the UK compared with Germany and France has nearly tripled, increasing from 6% to 16%. This amounts to an additional £3,700 in lost output per individual.

UK households have been reeling under the cost-of-living crisis and with inflation biting into the budgets of households, investing in the stock market may be an attractive option. Investors, in such a situation, turn to dividend stocks to beat the pressures of rising inflation. Let’s look at 3 blue-chip dividend stocks that UK investors can consider buying right now.

Imperial Brands plc (LON: IMB)

The UK-based tobacco firm, Imperial Brands plc, on Wednesday were witnessing a fall of 0.60% at around 12:30 PM (GMT+1) and were trading at GBX 1,821.00. The FTSE 100 company is currently offering investors an annual dividend yield of 7.7%. IMB on Wednesday, boasted of a market cap of £17,411.48m and its EPS lies in the positive territory, at 3.00. The company has performed well over the past 12 months, giving a positive return of 14.42% and YTD returns of 12.41% as of 13 July.  

British American Tobacco plc (LON: BATS)

The shares of the British cigarette producer, British American Tobacco plc, were experiencing a drop of 1.28% at around 12:30 PM (GMT+1) on 13 July and were trading at GBX 3,385.50. The FTSE 100 company is currently offering investors an annual dividend yield of 6.4%. As of 13 July, the company holds a market cap of £77,382.54m and its EPS lies in the positive territory, at 2.97. The company has performed well over the past 12 months, giving a positive return of 22.18% to investors on Wednesday. 

Vodafone Group plc (LON: VOD)

The shares of the UK-based telecom firm, Vodafone Group plc, were facing a fall of 0.91% at around 12:30 PM (GMT+1) on 13 July and were trading at GBX 128.10. The FTSE 100 company is currently offering investors an annual dividend yield of 5.8%. As of 13 July, the company holds a market cap of £36,229.60m and its EPS lies in the positive territory, at 0.07. The company has performed well over the past 12 months, giving a positive return of 7.72% to investors along with YTD returns of 14.16%.


 

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