Summary

• Investment in regular dividend-paying stock for stable passive income is a popular investment strategy.

• The company that pays a regular dividend are well-established companies into the mature phase of the industry cycle.

Investment in the regular dividends paying stocks that deliver a stable growth year on year is a popular strategy followed by many investors. The dividend is the profit shared by the company with its shareholders as direct cash. The company which pays regular dividend are generally in the mature phase of industry cycle which are well established. A company with a well-defined dividend policy attracts investors.

Here is a list of the top 15 stocks among many that pays regular dividends:

1.      Vodafone Group Plc (LON: VOD)

The British telecommunication service provider reported £37694 million in revenue with a pretax profit of £3785 million in the year ended 31 March 2021. Recently the company announced the launch of 5G trials in the UK.

The company has declared a dividend of 3.86p per share to be paid on 6 August 2021, while its dividend yield was 6.24%.

2.      GlaxoSmithKline Plc (LON: GSK)

The pharmaceutical giant recently announced that its projected sales growth would be more than 5% in the 2021-26 period driven by high-quality vaccines and a specialty Medicine portfolio. In the year ended December 2020, the company reported £34,099 million in revenue and a pretax profit of £6,968 million.

The company will be paying its next dividend of 19p per share on 8 July 2021, while its dividend yield stood at 5.95% in 2020.

3.      Persimmon Plc (LON: PSN)

The UK-based construction company has appointed Shirine Khoury-Haq to the Board as an Independent Non-Executive Director with effect from 1 July 2021. In the year 2020, the company saw its revenue decline to £3,328.30 million (FY19 revenue: £3,649 million) with pretax profits of £783.80 million.

The company paid the last interim dividend of 125p per share on 26 March 2021, while its dividend yield was 6.17%.

4.      Diversified Energy Company (LON:DEC)

The oil and natural gas wells owner and operator recently appointed Teresa Odom as Vice president of the ESG & Sustainability Division. The company reported revenue for 2020 saw a decline of 13% compared to 2019 with a pretax loss of £98.82 million.

The company pays a dividend every quarter, with the next dividend of 2.87p per share scheduled to be paid on 24 September 2021, while its dividend yield was 10.65% in 2020.

5.      Phoenix Group Holdings (LON: PHNX)

FTSE 100 listed company recently announced stake sell by one of its institutional investors, Reinsurer Swiss Re which sold a 6.6% stake in the company for £437 million. For the year ended 31 December 2020, the company reported £21,639 million in revenue with a pretax profit of £944 million.

The most recent dividend paid by the company was 24.1p per share on 18 May 2021, with last year dividend yield of 6.46%.

6.      Direct Line Insurance Group (LON: DLG)

The general insurance services provider, Chief Executive Penny James, was appointed as a senior independent director at Hargreaves Lansdown. In 2020 the company reported £3,166 million in revenue, marginally down by 2% compared to FY19 revenue with a pretax profit of £451.40 million.

The company has a dividend yield of 7.43%, with the last paid dividend of 14.7p per share on 20 May 2021.

7.      Polymetal International Plc (LON: POLY)

The precious metal and mining stock reported revenue of £2072 million (FY19 revenue: £1619 million) and a pretax profit of £1015 million (FY19 pretax profit: £458 million) in the year 2020.

The company paid its last dividend of 63.35p per share on 28 May 2021, while its dividend yield stands at 5.56%.

8.      Personal Group Holdings Plc (LON:PGH)

The health insurance service provider recently hired Liam McGrath as chief operating officer. In the year 2020 company reported £71.52 million in revenue, with the last paid dividend of 5.1p per share on 12 May 2021 and a dividend yield of 4.96%.

9.      Evraz Plc (LON: EVR)

The company producing and distributing steel products worldwide, generated £7063 million revenue in 2020 with a pretax profit of £937.79 million. The company recently paid a dividend of 14.11p per share on 25 June 2021, while its dividend yield was 5.6% in 2020.

Also Read: 5 FTSE 100 companies with a dividend yield of over 5%

10. Plus500 Ltd (LON:PLUS)

The Israel based company operates a trading platform for individual customers, has announced the acquisition of US-based Cunningham Commodities LLC for USD30 million to expand into the US futures markets.

The company declared a dividend of 59.2p per share, including a special dividend of 20.49 to be paid on 12 July 2020. In 2020 the dividend yield for the company stood at 7.32%.

11. Legal and General Group Plc (LON: LGEN)

The asset management company sold the stake in four companies from its portfolio, as these companies took limited action on carbon reduction and measures to curb pollution and climate change.

In FY 20, the company reported £49,405 million in revenue, with the last paid dividend of 12.64p per share on 27 May 2021 and a dividend yield of 6.18% in 2020.

12. M&G Plc (LON: MNG)

UK-based savings and asset management company as per AUM (asset under management) was increased to £367.2 billion in 2020 with revenue of £13,357 million and a pretax profit of £1,605 million. The last paid dividend was 12.23p per share on 28 April 2021, while its dividend yield was 7.46%.

13. National Grid Plc (LON: NG.)

The electricity and natural gas distributor reported £14,779 million in revenue and a pretax profit of £2,083 million in 2020. The company pays a dividend at regular intervals, with the next dividend of 32.16p per share scheduled to be paid on 18 August 2021, while its dividend yield stands at 5.22% in 2020.

14.  Imperial Brands Plc (LON: IMB)

UK-based tobacco maker appointed Lukas Paravicini as the new CFO of the company. The company follows a quarterly dividend payout policy and will pay the next dividend of 21.06p per share scheduled on 30 September 2021. In 2020 the company had a dividend yield of 8.62%.

15. BP Plc (LON: BP.)

Multinational energy business company has announced that it plans to invest £675.97 million in oil and gas discoveries in the Alvheim area in the North Sea. The company has a quarterly dividend payout policy with the last dividend of 3.71p per share paid on 18 June 2021, while its dividend yield stood at 5.04% in 2020.