5 Dividend Stocks Under Investors’ Radar in 2021

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Summary

• Dividend is one of the major criteria that an investor looks for before making any investment decision.
• Persimmon had declared a final dividend of 110 pence per share for FY 2020.
• Hargreaves Lansdown announced an interim dividend of 11.9 pence per share for H1 2021, 6 per cent higher than H1 2019.

Among the many factors, one major criteria investor keep in mind before their stock selection is company's dividend yield. Though dividend yield is a good criterion to look for. However, the investor should not be focused only on a single year’s dividend yield. A history of consistent dividend pay-outs should also be considered by investors.

Amid the raining dividend resumption announcements, let’s take a look at the 5 LSE-listed dividend stocks discussed below and evaluate the performances of those companies.

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Synthomer PLC (LON: SYNT)

The FTSE 250 specialty chemical company is engaged in the supply of aqueous polymers with a strong geographical presence. The company has been performing strongly, which is evident from the excellent progress depicted by Synthomer in the annual result for the year ended 31 December 2020. The company reported a 12.8 per cent increase in the revenue to £1,644.2 million for FY 2020 in comparison to the previous year (2019: £1,459.1 million).

The polymer supplier has been successful in paying out a final dividend of 8.6 pence per share for FY 2020 (2019: nil). The annual dividend yield of Synthomer was 2.6 per cent, and the dividend pay-out ratio was 1,589 per cent. It has delivered a positive price return of 1.46 per cent on a year-to-date (YTD) basis. The shares of SYNT were up 2.79 per cent to GBX 464.60 on 8 March at 08:51 AM, as compared to the previous trading session.

Persimmon PLC (LON: PSN)

Persimmon is a well-established holding company, listed on the benchmark index of the London Stock Exchange. The UK-based company is involved in providing housebuilding services to Brits. Despite the challenges due to the pandemic, the company has been able to deliver robust performance, with total group revenue amounting to £3.33 billion for the full year ended 31 December 2020 and the net cash position of the company stood at £1,234.1 million on the same date, driven by the pent-up demand for houses.

The housebuilder declared a final dividend of 110 pence per share for FY 2020, which was 6 per cent above that given in H1 2019 (11.2 pence). The annual dividend yield of Persimmon was 8 per cent, and the dividend pay-out ratio was 117.5 per cent.

It has delivered a positive price return of 7.89 per cent on a year-to-date (YTD) basis. The shares of PSN were up 0.65 per cent to GBX 2,981.00 on 8 March at 08:56 AM, as compared to the previous trading session.

Hargreaves Lansdown PLC (LON: HL.)

Established in 1987, Hargreaves is a UK-based financial company that provides investment services to investors. The company has worked hard to deliver incredibly strong growth during the unprecedented times and has successfully registered a 16 per cent and a 10 per cent growth in revenue and profit before tax to £299.5 million and £188.4 million, respectively, for H1 2021 ended 31 December 2020.

The financial company had announced an interim dividend of 11.9 pence per share for H1 2021, which was 6 per cent above of what was given in H1 2019 (11.2 pence). The annual dividend yield of Hargreaves was 8 per cent, and the dividend pay-out ratio was 117.5 per cent. It has delivered a positive price return of 0.05 per cent on a year-to-date (YTD) basis. The shares of HL. were up 0.62 per cent to GBX 1,528.00 on 8 March at 08:58 AM, as compared to the previous trading session.

British American Tobacco PLC (LON: BATS)

British American Tobacco PLC is a century-old multinational company, with its headquarters in London. The company is involved in manufacturing and supplying of consumer goods such as cigarettes, tobacco and other nicotine products. Though the company recorded a slight downfall of 0.4 per cent in revenue to £25,776 million for the FY 2020 ended 31 December 2020, the accelerated transformation and growth in new categories have led to a 10.5 per cent increase in profit from operations to £9,962 million.

The retailer had declared a final dividend of 215.6 pence per share for the reported period, which was 2.5 per cent above of what was given in FY 2019. The annual dividend yield of British American Tobacco was 8.2 per cent, and the dividend pay-out ratio was 75.8 per cent. It has delivered a negative price return of 3.90 per cent on a year-to-date (YTD) basis. The shares of BATS were down 0.52 per cent to GBX 2,600.00 on 8 March at 09:02 AM, as compared to the previous trading session.

IG Group Holdings PLC (LON:IGG)

Incorporated in 2003, IG Group Holdings PLC is a British company which is engaged in providing services of online trading in financial derivatives. The company has performed exceptionally well in the six months period ended 30 November 2020, with a 67 per cent surge in the net trading revenue to £416.9 million (H1 FY20: £249.9 million) and a 129 per cent increase in the profit before tax to £231.3 million (H1 FY20: £101.2 million). 

The financial company had declared an interim dividend of 12.96 pence per share for the first half of FY 2021. The annual dividend yield of IG Group Holdings was 5.5 per cent, and the dividend pay-out ratio was 66.4 per cent. It has been delivering a negative price return of 9.24 per cent on a yearly basis. The shares of IGG was up 0.26 per cent to GBX 783.00 on 8 March at 09:05 AM, as compared to the previous trading session.