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- Most dividend-paying companies are often backed by consistent and stable cash flows that help them avert risks during crises such as the COVID-19 pandemic or the economic recession.
- Investors often prefer investing in high dividend-yielding stocks, as it provides better returns in the long run.
Stocks offering consistent returns in the forms of regular dividend payouts lure investors across the board. Most dividend-paying companies are often backed by consistent and stable cash flows that help them avert risks during crises such as the COVID-19 pandemic or the economic recession. Investors often prefer investing in high dividend-yielding stocks, as it provides better returns in the long run.
Here is a detailed discussion of five FTSE stocks - Evraz, Ferrexpo, CMC Markets, Ros Agro and BHP Group that boast of a high dividend yield of over 10%.
(Data source: Refinitiv)
EVRAZ is a vertically integrated steel manufacturer and mining firm. Its total crude steel production was 3,403 tonnes in Q3 2021 compared to 3,368,000 tonnes in Q2 2021. Its total sales of steel products were 2,978,000 tonnes in Q3 2021 compared to 3,246,000 tonnes in Q2 2021.
Company’s external sales of iron ore products fell by 10.1% in Q3 compared to Q2 due to temporary logistics restrictions. While sales of vanadium products declined by 11.8% quarter-on-quarter due to low demand from the global automotive sector and slowdown in the oil, gas and rail sectors in Russia.
EVRAZ Plc’s current market cap is £9.16 billion, while its dividend yield stands at 12.1% as of 29 October 2021.
Ferrexpo is a mining and commodity trading firm and one of the largest global exporters of iron ore pellets. Ferrexpo announced achieving at least a 30% reduction in combined Scope 1 and 2 emissions by 2030.
In Q3 2021, Ferrexpo’s total iron ore pellet production rose by 2% year-on-year to 2.6 million tonnes. The company’s total commercial production comprising pellets & concentrate was 2,680,000 tonnes. Its high-grade iron pellets production increased to 8% of the total pellet production in Q3, compared to 3% in the previous quarter.
Ferrexpo’s current market cap is £1.87 billion, while its dividend yield stands at 12.0% as of 29 October 2021.
CMC Markets is a financial services firm that provides online share trading, contracts, spread betting, and foreign exchange services. In September, CMC Markets announced the transition of Australia and New Zealand Banking Group Limited's share investing customer base to CMC Markets for AUD$25 million.
CMC Markets expects net operating income for H1 2022 (ended 30 September 2021) to be around £126 million, and net operating income guidance for FY 2022 was in the range of £250 million to £280 million. It expects net trading revenue for the period to be nearly £100 million compared to £200 million in the same period in 2020.
Ferrexpo’s current market cap is £761.19 million, while its dividend yield stands at 11.7% as of 29 October 2021.
Ros Agro is an agricultural firm engaged in the production of oils, sugar, meat, and other agricultural products. It is also involved in the cultivation of sugar-beet, grains and pigs.
Ros Agro’s sales stood at US$ 1,404 million (RUB 104,372 million) in H1 2021, representing an increase of US$ 433 million or 45% compared to H1 2020. Its adjusted EBITDA was US$ 298 million (RUB 22,119 million) in H1 2021, up by 86% year-on-year. The company announced an interim dividend of USD 4.45 per share.
On 13 September 2021, Ros Agro Plc’s board announced an increase in the minimal payout ratio of dividends to 50% from 25%.
Ros Agro’s current market cap is £1.63 billion, while its dividend yield stands at 11.5% as of 29 October 2021.
BHP Group is a company engaged in the exploration, development, production, and processing of metallurgical coal, copper and iron ore. BHP Group’s profit from operations was US$25,906 million in 2021 (ended 30 June 2021) compared to US$14,421 million, representing an increase of 80% year-on-year.
For the year ended 30 June 2021, BHP Group’s board announced a final dividend of US$2.00 per share. The total dividend announced by the company was US$3.01 per share, equivalent to an 89% payout ratio.
BHP Group’s current market cap is £101.09 billion, while its dividend yield stands at 11.1% as of 29 October 2021.