2022 watchlist: Top 10 FTSE 100 stocks with high dividend yields

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Highlights

  • Regular dividend-paying stocks attract all kinds of investors, as they offer consistent returns on their investments.
  • There are several blue-chip stocks listed on the London Stock Exchange (LSE) that have high dividend yields and can make a valuable addition to an investor’s portfolio.

Regular dividend-paying stocks attract investors, as they offer consistent returns on their investments. Most of these stocks belong to companies in the mature phases of their industry cycle and are characterised by consistent and stable cash flows helping them overcome recession or pandemic-like crises.

There are several blue-chip stocks listed on the London Stock Exchange (LSE) that have high dividend yield and can make a valuable addition to an investor’s portfolio. In this article, we will discuss the investment prospect in the top 10 blue-chip stocks listed on the LSE with the highest dividend yield.

EVRAZ Plc (LON: EVR)

EVRAZ is a vertically integrated steel manufacturing and mining company. The company has operations mainly in Ukraine, Russia, Kazakhstan, the Czech Republic, the US, Italy, Canada and South Africa. In August, EVRAZ received approval for the construction of a vanadium slag processing facility in Uzlovaya SEZ, Russia.

EVRAZ’s revenues were $6,178 million in H1 2021 compared to $4,983 million in H1 2020, representing a year-on-year increase of 24%. The company’s board recommended an interim dividend of US$0.55 per share for 2021. 

EVRAZ’s five-year average dividend yield is the highest in the large-cap segment, standing at 10.6 per cent and its LTM (Last twelve month) dividend yield is 11.8 per cent. The company’s market cap currently stands at £9,402.71 million as of 26 October 2021.

M&G Plc (LON: MNG)

M&G Plc is an international investment management company. Recently, M&G invested $200 million in TIER Mobility, a European micro-mobility leader. 

M&G’s adjusted operating profit before tax was £327 million in H1 2021, representing an increase of 6% year-on-year. It announced an interim dividend of 6.1 pence per share to shareholders for H1 2021.

M&G’s five-year average dividend yield is the second highest in the large-cap segment, standing at 9.0 per cent and LTM dividend yield is 9.3 per cent. The company’s market cap currently stands at £5,112.72 million as of 26 October 2021.

Imperial Brands Plc (LON: IMB)

Imperial Brands is a tobacco company. It recorded a revenue of £15,568 million in H1 2021 compared to £14,672 million in H1 2020, representing an increase of 6.1% year-on-year. Its operating profit rose by 77% year-on-year to £1,637 million in H1 2021 compared to £925 million in H1 2020.

Imperial Brands declared 42.12 pence per share dividend for H1 2021 compared to 41.70 pence per share for H1 2020.

Imperial Brands’ five-year average dividend yield is 8.5 per cent, and LTM dividend yield is 8.8 per cent. The company’s market cap currently stands at £14,797.09 million as of 26 October 2021.

Persimmon Plc (LON: PSN)

Persimmon is one of the leading housebuilding companies in the UK. The company’s home completions in H1 2021 were 7,406 compared to 4,900 in H1 2020. The group revenues increased to £1.84 billion in H1 2021 from £1.19 billion in H1 2020, and profit before tax reached £480.1 million in H1 2021 from £292.4 million in the previous year.

Persimmon’s board recommended an interim dividend of 125 pence per share and an additional dividend of 110 pence per share to shareholders.

Persimmon’s five-year average dividend yield is 7.6 per cent. The company’s market cap currently stands at £8,389.14 million as of 26 October 2021.

BT Group Plc (LON: BT.A)

BT Group is a multinational telecommunications company having its spread in over 180 countries. It offers fixed-line, broadband, mobile, subscription television and IT services. It selected Oracle Communications Cloud Native Converged Policy Management for network resource optimisation and quicker commercialisation of 5G offerings. The company also launched Eagle-i, a new security platform, to prevent cyberattacks.

For the quarter ended 30 June 2021, BT Group’s revenue was £5,071 million, representing a year-on-year decline of 3%. It reported a profit before tax of £536 million in the quarter, representing a decline of 4% year-on-year.

BT Group’s five-year average dividend yield is 7.0 per cent. The company’s market cap currently stands at £13,410.56 million as of 26 October 2021.

BP Plc (LON: BP.)

BP Plc is a multinational oil and gas firm. It recorded a profit of $3,116 million in Q2 2021 compared to a loss of $16,848 million in Q2 2020.

BP announced an interim dividend for Q2 2021 as US$0.0546 per ordinary share to shareholders.

BP’s five-year average dividend yield is 6.9 per cent, and LTM dividend yield is 4.3 per cent. The company’s market cap currently stands at £71,978.23 million as of 26 October 2021.

Abrdn Plc (LON: ABDN)

Abrdn is a global investment firm. Recently, Abrdn rolled out a Responsible Global Strategies (RGAS) fund, which is Article 8 compliant and offers return of over a 5% and a volatility of 4-8% per annum over three years. The company announced the closure of its £130 million Diversified Core Growth fund.

For the six months ended 30 June 2021, Abrdn revenues increased by 43% year-on-year to £1.02 billion. The company announced an interim dividend of 7.3 pence per share to shareholders.

Abrdn’s five-year average dividend yield is 6.8 per cent, and LTM dividend yield is 5.7 per cent. The company’s market cap currently stands at £5,602.28 million as of 26 October 2021.

SSE Plc (LON: SSE)

SSE is a multinational energy firm with operations in Ireland and the UK. SSE Renewables, a division of SSE, changed the design of its up-to-4.1-GW Berwick Bank Wind Farm project to lower the impact on seabirds. It also inked a contract with Pacifico Energy, one of the largest developers of renewable energy in Japan, for the development of a joint ownership wind energy development project in the country. 

SSE announced a final dividend of 56.6 pence per ordinary share for the year ended 31 March 2021.  

SSE’s five-year average dividend yield is 6.8 per cent, and LTM dividend yield is 5.0 per cent. The company’s market cap currently stands at £17,213.09 million as of 26 October 2021.

Phoenix Group Holdings Plc (LON: PHNX)

Phoenix Group is a leading provider of long-term savings and retirement services. The company acquired the Standard Life brand.

For H1 2021, Phoenix Group declared an interim dividend of 24.1 pence per share declared compared to 23.4 pence per share in 2020. The group’s operating profit stood at £527 million in H1 2021 compared to £361 million in H1 2020. Its revenues increased from £3.07 billion in H1 2020 to £10.25 billion in H1 2021.

Phoenix Group Holdings’ five-year average dividend yield is 6.7 per cent, and LTM dividend yield is 7.3 per cent. The company’s market cap currently stands at £6,588.50 million as of 26 October 2021.

Vodafone Group Plc (LON: VOD)

Vodafone Group is a telecommunications firm with operations in Africa and Europe. For the fiscal year ended 31 March 2021, Vodafone Group’s revenues fell 3% year-on-year to EUR43.81 billion.

Vodafone announced a final dividend of 4.50 Eurocents per ordinary share for the year ended 31 March 2021.

Vodafone’s five-year average dividend yield is 6.6 per cent, and LTM dividend yield is 7.1 per cent. The company’s market cap currently stands at £30,386.16 million as of 26 October 2021.


 

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