3 FTSE stocks to buy with over 10% dividend yield

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Highlights

  • Many investors prefer to invest in high dividends yield stocks as they give predictable, regular income.
  • FTSE listed stocks, Rio Tinto Plc, Ferrexpo Plc and Diversified Energy Company Plc have a high dividend yield of over 10%.

Regular dividend-paying stocks attract a lot of investors, as they not only receive dividends income by investing in such stocks but also are investing in businesses that generally are in a mature phase of the industry cycle, having consistent and stable cash flows that help them overcome crises like recession or pandemic.

Many investors prefer to invest in high dividends yield stocks as they give predictable, regular income and better return on investment due to gradual surge in stocks price in the long run. Here we will discuss three FTSE listed stocks, Rio Tinto Plc, Ferrexpo Plc and Diversified Energy Company Plc that have a high dividend yield of over 10%.

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Rio Tinto Plc (LON: RIO)

It is one of the largest mining companies globally operating as a diversified group that carries out exploration across various mining projects located in different parts of the world.

The company’s revenue and profitability were positively impacted in the last one year, mainly due to a surge in commodity prices following economic recovery after the Covid-19 pandemic. As a result, the company reported USD 13,661 million in revenue during the first half of 2021. The present situation of high commodity prices globally primarily due to shortage of production because of energy crisis and low output from China signals a positive outlook for the mining company. Therefore, high commodity prices and increased production output might boost the company’s profitability, and shareholders could get higher dividends as per the company’s dividend payout policy.

Rio Tinto Plc’s current market cap is £62,419 million, while its current dividend yield stands at 11.2% as of 19 October 2021.

Ferrexpo Plc (LON: FXPO)

The company operates in the metal and mining segment engaged in exploring and producing iron ore pellets. Its flagship mining project is located in central Ukraine, which has one of the largest iron ore deposits globally.

The company reported a 74% rise in the half-yearly revenue at USD 1,353 million, mainly due to higher demand for iron ore pellets and the company’s investment to improve pellet quality. As a result, the company’s profit after tax was at USD 661 million, a rise of 165% during the period ended 30 June 2021. Following improvement in the revenue, the company declared an interim dividend of US 39.6c per share.

As per industry experts, the recent surge in iron ore prices amid tight supply is expected to continue till next year, which will help the company’s revenue.

Ferrexpo Plc’s current market cap is £1,895.3 million, while its current dividend yield stands at 17.9% as of 19 October 2021.

Diversified Energy Company Plc (LON: DEC)

The company operates in the oil and gas sector having ownership of multiple natural gas wells in the Appalachian Basin in the United States. It explores and produces crude oil and natural gas at its site.

The company reported improvement in oil and natural gas production in the six months ended 30 June 2021. Its natural gas production was up by 12%, while crude oil output was up by 27%. Also, the company was able to sell its inventory at a higher average realised prices compared to last year. As a result, the company increased its dividend payout in 2021 by USD 15 million compared to 2020. Its interim dividend was at 2.88p per share.

Diversified Energy Company Plc’s current market cap is £954.9 million, while its current dividend yield stands at 10.3% as of 19 October 2021.


 

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