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Highlights
- The Bank of England recently lifted its dividend payout restriction thus prompting companies to resume their dividend disbursements.
- Global dividend payouts are set to touch US$ 1.4 trillion in 2021, almost reaching pre-pandemic levels.
- The rise is due to strengthening macroeconomic scenario following a period of uncertainty due to the onset of the pandemic.
Several companies have reinstated dividend payments this year including the banks, after the Bank of England lifted its temporary restrictions on previously halted dividend payouts on 13 July, prompting companies to resume payouts. The dividend payouts were paused last year amid uncertainty surrounding the pandemic.
Global dividend payouts are projected to touch US$ 1.4 trillion this year, almost reaching its pre-pandemic levels due to economic recovery and improving macro environment, according to UK based asset management firm Janus Henderson.
As the dividends surge in Q2, let us take a closer look at 3 FTSE 100 listed stocks that are expected to make their dividend payouts this month and can be retained by the investors for the long term:
- BHP Group PLC (LON: BHP)
BHP is a global leading mining and resources company. The group had recently announced a significant shift in its business strategy by selling off its oil and gas business in order to focus on future-focused assets. Its shares have been on a downward slide since then. Also, the stock was the highest faller in the FTSE 100 index today.
BHP is set to make its final dividend payment of US$ 2 per share later this month on 21 September.
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BHP’s shares were trading at GBX 2,130.00, up by 1.09 per cent on 3 September at 08:29 AM GMT+1. Meanwhile, the FTSE 100 index was trading at 7,164.44, up by 0.05 per cent.
The company’s market cap stands at £44,501.35 million, and its one-year return stands at 22.40 per cent as of 3 September.
Related Article: BHP shares surge on record FY21 final dividend and Woodside merger
- Barclays PLC (LON: BARC)
Barclays is a UK based multinational universal banking major. Barclays and another investment bank Liontree were reportedly hired by Spanish telecom giant Telefonica to help find a financing partner for its UK fibre network plans, according to media reports.
Barclays is set to make its interim FY 2021 dividend payment of 2 pence per share on 17 September.
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Barclays’ shares were trading at GBX 185.64, up by 0.09 per cent on 3 September at 08:32 AM GMT+1.
The company’s market cap stands at £ 31,385.40 million and its one-year return stands at 79.38 per cent as of 3 September.
- Phoenix Group Holdings (LON: PHNX)
Phoenix Group is the largest UK based long term savings and retirement company. The company reported a strong cash generation of £872 million in H1 2021 compared to £433 million in H1 2020 due to a resilient balance sheet and new business long term cash generation.
It also reported that its H1 2021 group operating profit rose to £527 million from £361 million in the previous year.
Phoenix is set to make its interim H1 2021 dividend payment of 24.1 pence per share on 3 September.
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Phoenix’s shares were trading at GBX 629.40, up by 0.45 per cent on 3 September at 08:35 AM GMT+1.
The company’s market cap stands at £6,262.49 million as of 3 September.
Bottom Line
Investors who are currently holding blue-chip dividend stocks can expect their investment to resume making payouts. Moreover, as more and more companies resume payouts, risk averse and income investors can consider identifying such stocks to hold in their portfolio.
