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Highlights
- H&M proposes dividend as its profitability increased with growing net sales.
- Many companies recovering from the pandemic are reinstating their dividends this year.
Swedish multinational clothing-retail company H&M has witnessed increased net sales for the first time in nine months. As compared to last year, its net sales increased by 13% in local currencies, jumping up to 142,154 million Swedish krona. Despite disruption and delays in product flow due to the pandemic, the company has been able to increase its profits with good cost control, more full-price sales, and lower markdowns.
Overall, the company is maintaining a good financial position with a strong market outlook and future growth prospects. This in turn has motivated the Board of directors of the company to announce a cash dividend of 6.50 Swedish krona per share to be paid in November 2021.
Apart from fast-fashion retailers like H&M, other companies across the industrial spectrum have suffered due to the pandemic. As we know that dividends are the profits that are distributed by the company among its shareholders, being profitable becomes the basic requirement to be able to pay out dividends. The impact of the pandemic is expected to stay for quite some time, but many companies are already on the path of recovery to reach the pre-pandemic levels of growth. Thus, they are again in a position to loosen their purse strings and give out higher returns to their shareholders.
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Let’s take a look at 7 FTSE companies that have reinstated their dividends this year.
Royal Dutch Shell plc (LON: RDSB)
Royal Dutch Shell plc, popular as Shell, is a global group of energy and petrochemical companies based in Netherlands. Its current market capitalisation stands at £60,395.99 million and it has given a return of 73.52% in 1 year. Its 5-year average dividend yield is 5.78%. The previous close price of Royal Dutch Shell plc’s shares was GBX 1,649.60 as on 30 September 2021.
Lloyds Banking Group PLC (LON: LLOY)
Lloyds Banking Group PLC is one of the largest and oldest financial services organisations in the UK. Its current market capitalisation stands at £33,058.54 million and it has given a return of 71.09% in 1 year. Its average dividend per share stands at GBP 0.02 and its 5-year average dividend yield is 3.8%. The previous close price of Lloyds Banking Group PLC’s shares was GBX 46.57 as on 30 September 2021.
BHP Group PLC (LON: BHP)
BHP Group PLC is a global natural resources company which produces and processes iron ore, metallurgical coal, and copper. Its current market capitalisation stands at £39,880.14 million and it has given a return of 12.66% in 1 year. Its average dividend per share stands at GBP 2.25 and its 5-year average dividend yield is 5.0%. The previous close price of BHP Group PLC’s shares was GBX 1,888.20 as on 30 September 2021.
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Rio Tinto plc (LON: RIO)
Rio Tinto plc is a leading global mining group which produces iron ore, copper, diamonds, gold, and uranium. Its current market capitalisation stands at £61,314.91 million and it has given a return of 3.94% in 1 year. Its average dividend per share stands at GBP 8.45 and its 5-year average dividend yield is 5.4%. The previous close price of Rio Tinto plc’s shares was GBX 4,913.50 as on 30 September 2021.
AstraZeneca plc (LON: AZN)
AstraZeneca plc is a leading UK-based global pharmaceutical and biotechnology company. Its current market capitalisation stands at £138,770.89 million and it has given a return of 3.90% in 1 year. Its average dividend per share stands at GBP 2.05 and its 5-year average dividend yield is 3.5%. The previous close price of AstraZeneca plc’s shares was GBX 8,958.00 as on 30 September 2021.
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GlaxoSmithKline plc (LON: GSK)
GlaxoSmithKline plc is a UK-based global healthcare company, which is engaged in developing innovative medicines and vaccines. Its current market capitalisation stands at £70,625.38 million and it has given a return of -4.24% in 1 year. Its average dividend per share stands at GBP 0.79 and its 5-year average dividend yield is 5.4%. The previous close price of GlaxoSmithKline plc’s shares was GBX 1,403.60 as on 30 September 2021.
British American Tobacco plc (LON:BATS)
British American Tobacco plc is a UK-based company, which is engaged in production of cigarettes, tobacco and other nicotine products. Its current market capitalisation stands at £59,752.59 million and it has given a return of -8.10% in 1 year. Its average dividend per share stands at GBP 2.18 and its 5-year average dividend yield is 5.7%. The previous close price of British American Tobacco plc’s shares was GBX 2,604.00 as on 30 September 2021.
