- Global dividend payouts are expected to reach about US$ 1.39 trillion in 2021, only 3 per cent below the pre-pandemic levels.
- Full year dividend payouts are forecast to be 2.2 per above the previous estimate.
- Dividends were impacted in 2020 as governments placed restrictions on companies due to economic uncertainty related to the pandemic.
Global dividend payouts are expected to touch up to US$ 1.39 trillion in 2021, up by 2.2 per cent from an earlier forecast, according to a report published today by UK based asset management firm Janus Henderson. Moreover, the latest global dividends forecast is expected to be only 3 per cent below pre pandemic levels.
This recovery in dividends comes after dividend pay-outs were paused or cut in 2020 due to headwinds from the onset of the pandemic and governments placing restrictions on making dividend payments due to uncertainty. Notably, dividend growth in Q2 2021 indicated a strong recovery, with headline growth standing at 26.3 per cent as per Janus Henderson’s Global Dividend Index.
Some industry experts expect global dividends to reach their pre pandemic levels in the next 12 months.
Let us take a look at 10 FTSE listed dividend stocks with the highest 5 year average dividend yield:
1. Downing Four VCT PLC (LON: DO1D)
The main market listed Downing Four VCT PLC is a venture capital trust (VCT) that invests in evergreen and limited life share class investments.
The company recently announced its net asset value per generalist share as of 31 July of 66.5 pence per share.
The company has a market cap of £0.71 million as of 23 August, and its five-year average dividend yield stands at 263.7 per cent, the highest among all companies listed on the London Stock Exchange.
Related Article: Which UK stocks pay the highest dividends?
2. Sherborne Investors (Guernsey) B Ltd (LON: SIGB)
Sherborne Investors is a Guernsey domiciled closed ended investment company. It recently announced its H1 2021 results, reporting its net asset value (NAV) as of 30 June at £0.76 million, compared to £17.5 million as of 30 June last year.
It also paid a dividend in specie of 8,250,575 Electra shares amounting to £51.3 million on 30 June.
Sherborne has a market cap of £1.73 million as of 23 August, and its five-year average dividend yield stands at 101.0 per cent.
3. Seneca Growth Capital VCT PLC (LON: HYG)
Seneca Growth Capital, formerly known as Hygea, is a VCT focused on offering a steady income stream and capital growth to its investors.
It recently announced its H1 2021 results, reporting its NAV per ordinary share as of 30 June of 39 pence per share, up from 30 pence in H1 2020.
Also, its declared dividend of 4 pence per share in H1 2021, compared to nil in H1 2020.
Seneca has a market cap of £2.72 million as of 23 August, and its year-to-date return is at 23.77 per cent. The company’s five-year average dividend yield stands at 41.50 per cent.
4. DP Aircraft I Ltd (LON: DPA)
DP Aircraft is a Guernsey-based holding company focused on buying, leasing and sale of aircraft.
The company declared dividend pay-outs of US$ 0.0225 per share in its FY 2020 annual financial report, which were paid out on 14 February 2020. Following the pay outs, the company paused dividend pay-outs due to the impact on aircraft leasing amid the pandemic.
DP Aircraft has a market cap of £5.77 million as of 23 August, while the company’s five-year average dividend yield stands at 40.3 per cent.
5. Grit Real Estate Income Group Ltd (LON: GR1T)
Grit Real Estate Income Group is an Africa focused real estate company.
It recently announced in its operational and portfolio update that rent collection had improved in H1 2021 for the six months period ending on 30 June. Its collection rate stands at 93.6 per cent, up from 91.4 per cent in December 2020.
Grit Real Estate has a market cap of £134.15 million as of 23 August, and its five-year average dividend yield stands at 29.1 per cent.
6. Mobeus Income & Growth 2 VCT PLC (LON: MIG)
Mobeus Income & Growth, formerly known as Matrix Income and Growth, is a VCT that invests in established and unquoted companies.
It recently announced in its FY 2021 results, reporting its NAV at £73.90 million as of 31 March. Also, its cumulative dividend paid in FY 2021 was at 116.0 pence per share, up from 109 p in FY 2020.
Mobeus has a market cap of £66 million as of 23 August, and its year-to-date return is at 16.77 per cent. The company’s five-year average dividend yield stands at 27.3 per cent.
7. Maven Income and Growth VCT PLC (LON: MIG1)
Maven Income and Growth is a generalist VCT focused on long term capital appreciation.
It recently announced a new dividend investment scheme (DIS), that its final dividend in FY 2021 was at 1 pence per share. Under the DIS, shareholders could choose to subscribe for new ordinary shares worth 10 pence per share by 2 July, with the dividend amount to be paid.
Maven has a market cap of £57.76 million as of 23 August and its year-to-date return is at 3.41 per cent. The company’s five-year average dividend yield stands at 26.3 per cent.
8. Baronsmead Venture Trust PLC (LON: BVT)
Baronsmead Venture Trust is a tax efficient VCT investing in early stage and growth UK based companies.
It recently announced its unaudited NAV per ordinary share of 84.64p per share as of 31 July 2021. Also, its interim dividend of 3 pence per share for FY 2021 is set to be payable on 10 September.
Baronsmead has a market cap of £211.07 million as of 23 August, and its year to date return is at 4.0 per cent. The company’s five-year average dividend yield stands at 18.9 per cent.
9. Thinksmart Ltd (LON: TSL)
FTSE AIM All-Share index listed firm Thinksmart is a specialist digital payments platform.
The company stands to benefit from a recent announcement of US based fintech firm Square acquiring Australian fintech firm Afterpay.
Under Thinksmart’s existing agreement with Afterpay relating to its 10 per cent remaining holding in Clearpay Finance, Afterpay can choose to exercise its call options due to a change of control. The Afterpay acquisition is expected to be complete by Q1 2022.
Thinksmart has a market cap of £211.07 million as of 23 August, and its year-to-date return is at 28.76 per cent. The company’s five-year average dividend yield stands at 18.0 per cent.
10. Triple Point VCT 2011 PLC (LON: TPOA)
Triple Point is a UK based VCT investing in electricity generation and small and medium-sized enterprises.
The company recently announced its unaudited NAV per venture share as of 4 August 2021, up by 2.3 per cent at 108.43 pence per share from its NAV per venture share of 105.99 as of 13 July 2021.
Triple Point has a market cap of £4.55 million as of 23 August, and its five-year average dividend yield stands at 17.6 per cent.
As the Bank of England’s dividend restrictions recently got lifted following a pause in 2020, financial companies have also resumed their dividend pay-outs this earnings season.
Investors who are seeking to park their investments in income generating and high dividend stocks can consider such high yielding dividend stocks to add to their portfolio. However, they must consider the company and their dividend roadmap. However, some companies may not have resumed their pay outs yet, depending on their sectoral recovery and company performance, but in the near future can start the dividend payment once things are back on track.