Should people, who retire with a large corpus of funds at hand, think about investments? It depends, one would argue, on what objective one seeks to achieve. There is a big chance that someone who had a successful career was able to take care of most of his responsibilities and is left with a large corpus with not much idea about what to do with it. For our convenience lets restrict ourselves to the objective of creation of monetary value only and leave out the others which are out of the preview of investments and finance. The profile, thus, of some one at that stage of life who is looking to invest is of someone who would prefer preservation of capital over everything else and second, would prefer current earnings over long term capital gains.
There are two types of investment avenues that would fit such a profile: one guilt-edged periodic income securities which provide assured capital protection and a low rate of periodic return which may be monthly or some other time interval of convenience; the second alternative, if the investor should choose to be a little bit more adventurous , he would want to invest in high grade equities which have a good history of paying dividends. While the periodic income yield in both cases may be similar most of the time, equities have an upside of providing higher returns in times of good performance by the underlying businesses with the risk that returns may shrink if the opposite happens.
Below are seven low risk dividend stocks trading on the London Stock Exchange that fit the characteristics of the above mentioned, second criteria. One may consider including some or all of these stocks in their portfolios if they are building up a dividend portfolio to fulfill the above criterion.
- Coca‑Cola HBC AG- (LON: CCH) Coca-Cola HBC AG is one of Coca-Cola Company’s leading bottling arm with an annual sales volume of more than two billion-unit cases. The company has a huge geographic footprint serving a vast population of more than 600 million people with its business spanning over 28 countries. Coca-Cola HBC offers beverages in sparkling, juice, water, sport, energy, tea and coffee categories and a diverse range of primarily non-alcoholic ready-to-drink beverages. Amongst the topmost sustainability performers in the world, the Coca-Cola HBC AG is one and is also included within the ESG benchmarks indices such as the CDP, MSCI ESG, Dow Jones Sustainability Indices, and FTSE4Good, among others.
The latest dividend paid by the company was the special dividend of 2019 of ¢ 200.00 per share paid on 30 July 2019, that the company paid a final dividend of ¢ 57.00 per share for 2019 paid on 30 July 2019, and before that it paid a final dividend of ¢ 54.00 per share for 2018 paid on 24 July 2018.
- Vodafone Group Plc- Vodafone Group Plc (LON: VOD) is a United Kingdom domiciled telecommunication company providing a range of services including mobile communication, fixed communication, unified communication, internet of things (IoT), cloud hosting and security & carrier services based in Newbury. The company has standalone operations in 24 countries, network partnerships in 41 and fixed broadband operations in 19 countries.
The latest dividend of the company is the first interim dividend of 2019 of ¢ 4.50 per share to be paid on 07 February 2020, prior to that the company paid a final dividend of ¢ 4.16 for the year 2019 paid on 02 August 2019, prior to that the company had paid an interim dividend of ¢ 4.84 for 2019 on 01 February 2019.
- Aviva Plc - Aviva Plc (LON: AV.) is a multinational composite insurer group based out of London, United Kingdom. The group offers a wide range of savings and insurance products - including life, general and health insurance – and operates an asset management business as well. It is the UK's largest insurer and is country's only large scale, multi-line insurer, and has a strong international presence in Europe, Canada and Asia.
The latest dividend of the company is the first interim dividend of 2019 of 9.50 pence per share paid on 26 September 2019, prior to that the company had paid a final dividend for 2018 of 20.75 pence per share paid on 30 May 2019 and before that interim dividend of 2018 of 9.25 pence per share paid on 24 September 2019.
- Glaxo SmithKline Plc - Glaxo SmithKline Plc (LON: GSK) is a United Kingdom based global pharmaceutical major. The company's portfolio of products includes prescription therapeutics, medicines and vaccines. Its prescription medications range across therapeutic value chain including medications for anti-infective, dermatological conditions, gynaecology, diabetes mutatis, cardiovascular disorders and respiratory ailments. The company also provides a large number of vaccines for a range of diseases namely, for the prevention of hepatitis A, hepatitis B, invasive ailments as a result of Hemophilus influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer and streptococcus pneumonia among others.
The latest dividend of the company is the third quarter dividend of 2019 of 19.00 pence per share to be paid on 09 January 2020, prior to that company has paid second quarter dividend of 2019 of 19.00 pence per share on 10 October 2019 and before that the first quarter dividend of 2019 of 19.00 pence per share paid on 11 July 2019.
- Nichols Plc – (LON: NICL) Nichols plc is a United Kingdom domiciled international soft drinks company with business spanning in over 85 countries. The company’s products are available in both Still and Carbonate categories and the company is also the owner of the iconic brand Vimto which has a wide fan base both in the United Kingdom and also across the globe, especially in the Middle Eastern and African countries. The most popular of the company’s brands are Sunkist, Starslush, ICEE, Levi Roots and Feel Good.
The latest dividend paid by the company was the first interim dividend of 2019 of 12.40 pence per share paid on 30 August 2019. Prior to that the company had paid a final dividend of 26.80 pence for year 2018 on 03 May 2019, and prior that an interim dividend for 2018 of 11.30 pence was paid on 31 August 2018.
- Rio Tinto Plc– Rio Tinto Plc (LON: RIO) is an Anglo-Australian mining and metal corporation based out of Melbourne Australia. Founded in 1873 the company has over the years grown through mergers and acquisitions. It is the world’s foremost producers of aluminium, uranium, copper, iron ore and diamonds. The company has its operations in six continents; its operations are mainly concentrated in Canada and Australia. The company is listed both on the London Stock Exchange and at the Australian Stock Exchange.
The last dividend paid by Rio Tinto Plc was 123.32 pence per share paid on 19 September 2019 along with a bonus dividend of 49.82 pence per share on same date. For year ending 2018-19 the company paid a final dividend of 135.96 pence per share on 18 April 2019.
- Imperial Brands Plc - Imperial Brands Plc (LON: IMB) is a British fast moving consumer goods company. The company has two business verticals tobacco products and logistics and its operations are spread across the world from Asia to Europe to the Americas.
The last dividend paid by the company was on 30 September 2019 amounting to 31.28 pence per share; prior to that the company also paid dividend of 31.28 pence per share on 28 June 2019 and a dividend of 65.46 pence per share on 29 March 2019.
With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities.
Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?
Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.
We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.