IMB, BATS, VOD- Blue-chip dividend stocks to consider as pay growth plunges

July 13, 2022 12:57 PM BST | By Rishika Raina
Follow us on Google News:

Highlights

  • Compared with households in comparable countries, UK families are approximately £9,000 worse off in terms of earnings.
  • Since 2008, the productivity gap of the UK with Germany and France has nearly tripled.
  • The report also showed that pay growth in the UK has dropped below zero.

According to a survey by the London School of Economics (LSE) and think tank Resolution Foundation, UK families, compared to other countries, are approximately £9,000 worse off in terms of earnings. The research showed that the income of an average low-and-middle-earning family in the UK is a third less as compared to families in other countries on par.

                                                         ©2022 Kalkine Media®

The study highlights that this gap is worse in the case of poorest households as their incomes lagged by 40% compared to the five comparable countries which include France, Germany, the Netherlands, Australia and Canada. 

According to the interim report of the Economy 2030 Inquiry by Stagnation Nation, less growth, reduced productivity and rising inequality was are few of the reasons behind the substantial income gap in the UK, which may have catastrophic consequences for households, especially the economically weaker ones.

The report also shed ligh on the pay growth in the UK has dropped below zero. Additionally, since 2008, the productivity gap of the UK compared with Germany and France has nearly tripled, increasing from 6% to 16%. This amounts to an additional £3,700 in lost output per individual.

UK households have been reeling under the cost-of-living crisis and with inflation biting into the budgets of households, investing in the stock market may be an attractive option. Investors, in such a situation, turn to dividend stocks to beat the pressures of rising inflation. Let’s look at 3 blue-chip dividend stocks that UK investors can consider buying right now.

Imperial Brands plc (LON: IMB)

The UK-based tobacco firm, Imperial Brands plc, on Wednesday were witnessing a fall of 0.60% at around 12:30 PM (GMT+1) and were trading at GBX 1,821.00. The FTSE 100 company is currently offering investors an annual dividend yield of 7.7%. IMB on Wednesday, boasted of a market cap of £17,411.48m and its EPS lies in the positive territory, at 3.00. The company has performed well over the past 12 months, giving a positive return of 14.42% and YTD returns of 12.41% as of 13 July.  

British American Tobacco plc (LON: BATS)

The shares of the British cigarette producer, British American Tobacco plc, were experiencing a drop of 1.28% at around 12:30 PM (GMT+1) on 13 July and were trading at GBX 3,385.50. The FTSE 100 company is currently offering investors an annual dividend yield of 6.4%. As of 13 July, the company holds a market cap of £77,382.54m and its EPS lies in the positive territory, at 2.97. The company has performed well over the past 12 months, giving a positive return of 22.18% to investors on Wednesday. 

Vodafone Group plc (LON: VOD)

The shares of the UK-based telecom firm, Vodafone Group plc, were facing a fall of 0.91% at around 12:30 PM (GMT+1) on 13 July and were trading at GBX 128.10. The FTSE 100 company is currently offering investors an annual dividend yield of 5.8%. As of 13 July, the company holds a market cap of £36,229.60m and its EPS lies in the positive territory, at 0.07. The company has performed well over the past 12 months, giving a positive return of 7.72% to investors along with YTD returns of 14.16%.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top LSE Listed Companies