There is no other month of the year more exiting for the investors of an income portfolio comprising of FTSE 100 stocks than it would be for the month of September. Most of the companies declare dividends during this time of the year, making the investors flush with cash. This month also represents a reinvestment opportunity as some investors find that the best way to utilize these surplus funds is to reinvest back into the portfolio so that the corpus may increase over time. This strategy is usually followed by investors who are building a retirement corpus with a large income component.
The FTSE 100 companies are the strongest, well-grounded and well diversified companies; they are generally less risky and also more often than not distribute a significant part of their earnings as dividends. The companies are also fairly consistent in paying dividends as their businesses are less susceptible to economic peaks and troughs on account of their businesses being geographically well entrenched. Also due to the general economic conditions prevalent in United Kingdom this year most of these stocks are available at bargain prices, resulting in their dividend yields being higher this year than it would in other years.
Below is a list of five companies on the FTSE 100 list that declared dividends in September 2019 and are most likely to repeat the same in future as well.
- Aviva Plc– AVIVA PLC (AV.) is a multinational Insurance company based out of St Helen’s EC3 London. The company operates in 16 countries and serves nearly 33 million customers worldwide. The company is the largest insurer in United Kingdom and Second largest in Canada with significant presence in other developing markets as well. In fact, less than half, or approximately 48 per cent of AVIVA’s customers are from the United Kingdom while about 52 percent reside in United States, Europe and South-Asia. The company is taking giant strides in order to expand rapidly in China and South East Asia where it seeks to achieve its next round of strategic growth.
The company is part of the FTSE 100 index and had paid a dividend totaling about £1 billion in 2018. The company has been a good dividend payer and is expected to continue with the trend in future as well. The last dividend paid by Aviva Plc was 9.50 pence per share paid on 26 September 2019. In 2018 the company paid an interim dividend of 9.25 pence per share on 24 September 2018 and a final dividend of 20.75 pence per share on 30 May 2019.
- Rio Tinto Plc– Rio Tinto Plc (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 aluminum, 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. At the London Stock Exchange, the shares of the company trade with the ticker name RIO, and at the Australian Stock Exchange the shares of the company also trade with the ticker name RIO. The shares of the company are both constituents of the FTSE 100 index as well as the S&P/ASX 200 index.
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.
- Micro Focus International Plc – Micro Focus International Plc (MCRO) is a British IT major and a multinational software company. The stock is a constituent of the FTSE 250 index. Dividend rates have increased over the past five years except for 2019 when the company was facing integration issues with one of its acquisitions. Once the issue is resolved, it is expected to return to its historical dividend payout rates.
The last dividend paid by the company was on 5 September 2019 of 58.33 cents per share. Prior to this the company had paid a dividend of 58.33 cents per share on 28 February 2019 as well.
- Imperial Brands Plc - Imperial Brands Plc (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 shares of the company are listed on the London Stock Exchange on the main market segment and they trade there with the ticker name IMB. The shares of the company also form part of the FTSE 100 index. The company has been a good dividend payer and is expected to continue with the trend in future as well
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.
- BP Plc - BP Plc (BP.) is the United Kingdom second largest multinational oil and gas company having operations in all three streams of the Oil & Gas industry (upstream, midstream and downstream). As per Fortune Magazine’s BP Plc stands at the seventh rank in its Global 500 list of the world’s largest companies in terms of revenue. As on 31 December 2018 the company had operations in over eighty countries producing over 3.7 million barrels of oil equivalent per day from proven oil asset reserves of 19.945 billion barrels of oil equivalent. The company now has started to invest in renewable energy verticals like wind energy, solar energy and biofuels, other than its traditional Oil & Gas verticals. The shares of the company have their listings on the Frankfurt Stock Exchange, the London Stock Exchange, and at the New York Stock Exchange. The stocks of the company trade with the ticker name BP. At the London stock Exchange; with the ticker name BP at the New York Stock Exchange, and with the ticker name BPE5 at the Frankfurt Stock Exchange. The shares of the company also form part of the FTSE 100 index of the London stock Exchange. The company has been a good dividend payer and is expected to continue with the trend in future as well
The last dividend paid by the company was 8.3475 pence per share paid on 20 September 2019. Prior to that the company paid dividend on 21 June 2019 of 8.0655 pence per share and a dividend of 7.7382 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.