There were several companies on the FTSE 100 index that gave a good dividend yield in the year 2019 despite it being a year of weak business fundamentals in the United Kingdom. The constituents of the FTSE 100 index are the largest companies listed on the London Stock Exchange in terms of both revenue and market capitalisation. Several of these companies also have a significant portion of their earnings come from overseas markets, whereby they are able to successfully even out domestic weak trading conditions with good trading conditions overseas. The year 2019 had been a record year when massive dividends were doled by these companies, particularly because the British Pound Sterling was gradually becoming weaker while these companies were earning in foreign currencies.
We would look at five of these companies belonging to the FTSE 100 index, from which investors got a good dividend yield in 2019. Also, these stocks hold promise to reward investors suitably in 2020 as well.
- GlaxoSmithKline Plc – (LON: GSK) Glaxo SmithKline Plc is a British pharmaceutical company having a global footprint. Its primary products include prescription medicines, therapeutics and vaccines ranging across areas such as anti-infective, dermatology, gynecology, diabetes, cardiovascular disease and respiratory diseases, vaccines for the prevention of hepatitis A, hepatitis B, invasive disease caused by Hemophilus influenza, chickenpox, diphtheria, pertussis, tetanus, rotavirus, cervical cancer, streptococcus pneumonia and others.
The company is expected to pay out 23 pence per share for 4QFY19 on 9 April 2020. The latest payout made by GSK was a dividend of 19.00 pence per share for Q3 2019 on 9 January 2020; before that it had paid out Q 2 dividend of 2019 of 19.00 pence per share on 10 October 2019 and Q 1 dividend of 2019 of 19.00 pence per share was paid out on 11 July 2019.
The annual dividend yield of the company till 20 March 2020 is 7.10 per cent.
- Royal Dutch Shell Plc Class A – (LON: RDSA) Royal Dutch Shell PLC is the Hague Headquartered Dutch oil and petrochemical company. The company explores, refines and markets oil and natural gas from natural gas and crude oil fields globally, in both conventional fields and from other sources, such as coal formations, tight rock and shale. With the company also having a significant presence in the production of specialty petrochemicals, the company is present in all three streams of the oil & gas industry. The company’s integrated Gas business is involved in the liquefaction and transportation of gas as well as all other activities related to the conversion of natural gas into liquid energies and other products as also part of it.
Upstream activities of the company include extraction and exploration of natural gas, natural gas liquids and crude oil, midstream includes transportation, and downstream activities include marketing of gas and oil, oil sands, production of synthetic crude oil from bitumen extracted from mined oil sands and production of petrochemicals. The company has an employee base of around 86,000 employees in over 70 countries globally.
The company is expected to pay a dividend of 47 US cents per share on 23 March 2020 for 4QFY19. The latest dividend paid out by RDSA was of 47.00 ¢ per share paid on 18 December 2019 for Q3 of 2019, it paid a dividend of 47.00 ¢ per share on 23 September 2019 before that for Q2 of 2019 and Q1 dividend of 2019 of 47.00¢ per share was paid on 24 June 2019. The current annual dividend yield of the company till 20 March 2020 is 12.74 per cent.
- HSBC Holdings Plc- (LON: HSBA) HSBC Holdings Plc is a British Banking company having interests in a varied range of financial services and a presence across the globe. It was the largest banking group in Europe and the seventh-largest in the world by the end of 2018. First starting out in 1865 in the erstwhile far-east British territory of Hong Kong, the group has grown exponentially over the years and is now present all across Asia, Oceania, Africa, Continental Europe, North America and in South America.
Presently its operations span over 67 countries with 3900 offices serving over 38 million customers and assets worth US$2,728 billion as on 30 September 2019.
The company is expected to distribute a dividend of 21 US cents per share on 14 April 2020 for 4Q FY19. The latest dividend paid by HSBA was of 10.00 ¢ per share on 20 November 2019 for Q3 of the year 2019, before that it had paid Q2 dividend of 10.00 ¢ per share for the year 2019 paid on 26 September 2019 and Q1 dividend of the year 2019 of 10.00 ¢ per share on 5 July 2019. The current annual dividend yield of the company till 20 March 2020 is 8.70 per cent.
- BP Plc - (LON: BP) BP Plc is a United Kingdom-based multinational Oil and gas company active in all three streams of the industry. It is amongst the top two oil and gas companies in the United Kingdom, and according to Fortune Magazine's Global 500 list of the world's largest companies by revenue, BP Plc stands at the seventh rank.
Other than its traditional Oil & Gas verticals, the company now has started to invest in renewable energy verticals like wind energy, solar energy and biofuels. The company is expected to pay a dividend of 10.5 US cents per share on 27 March 2020. The latest dividend paid by BP Plc was 10.25 US cents per share on 20 December 2019. Prior to that, a dividend of 10.25 US cents per share paid out on 20 September 2019, and a dividend of 10.25 US cents per share was paid out on 21 June 2019. The current annual dividend yield of the company till 20 March 2020 is 13.98 per cent.
- Barratt Developments Plc – (LON: BDEV) Barratt Development Plc is a United Kingdom domiciled property developer. It is one of the largest residential property developers in that country having an operating network of 30 divisions, the developer owns and operates three consumer brands: Barratt Homes, David Wilson Homes and Barratt London. The company is one of the best-performing companies in its class on the London stock exchange, during the previous five years.
The company is expected to pay an interim dividend of 9.8 pence per share on 11 May 2020. The latest dividend paid by BDEV to its shareholders was a special dividend of 17.30 pence per share, along with a final dividend payout for the full year of 19.50 pence per share on 5 November 2019. On 7 May 2019, it had paid an interim dividend of 9.60 pence for 2019. The current annual dividend yield of the company till 20 March 2020 is 7.18 per cent.
The coronavirus pandemic has affected almost all sectors of the British economy. Many of the companies on the FTSE 100 index have issued revenue warnings and have even slashed their earlier declared dividend payouts. The above five companies are expected to have the least impact of the pandemic on their fortunes compared to their counterparts and have the most chance of paying out dividends in 2020 as well.
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