5 Hot FTSE Dividend Stocks to Watch in May 

    Summary

• Pandemic has drained company cash reserves forcing many to reduce dividend payouts.
• With vaccine roll out and productions back on track, investors have started demanding dividends.
• Focus has shifted towards dividend paying stocks, and income seeking investors have grown in numbers.

Companies all around the globe had to drain their cash reserves in 2020 to survive the pandemic. Now, with vaccine rollouts and productions on the roll, companies are posting positive numbers. Even dividend payments have resumed. Now in the aftermath of the pandemic income seeking investors have grown in numbers, who want to have an income source that can support them the unprecedented events like Covid-19.  

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Companies on London Stock Exchange are now better positioned for dividend payouts. Though 2021 growth forecasts are still unclear, investors are looking for stocks with better dividend payouts. Here are 5 Best Dividend Paying Stocks on FTSE for income investors-

• Royal Dutch Shell Plc (LON:RDSB)

It is the parent organization of Shell Global, an international energy company. Its expertise lies in exploration, refining and selling of oil and natural gas. Headquartered in the Netherlands & incorporated in UK, it is a part of FTSE 100 Index.

On 7 May 2021, 14:30 pm. GMT+1, its shares, were at GBX 1,421.80, a tad higher from the previous close. It has a 3.55% dividend yield and paid USD 0.1735 per share interim dividend for the first quarter of 2021.

The company practices full electronic settlement of its dividends, in CREST or via interbank transfers.

• Diversified Gas & Oil Plc (LON: DGOC)

It is a US based independent oil and gas manufacturing company. It operates in Appalachian Basin, producing, selling and transporting natural gas primarily. It is a part of FTSE 250 Index basket.

The stock was trading at GBX 123.80, on 7 May at 14:35 pm GMT+1. The company offers a dividend yield of 9.36 per cent to investors.

On 30 April 2021 it declared an interim dividend of 4.00 cents per share in respect of Q1'21 for 3 months ended 31 March 2021. It provides a choice to investors to receive dividends in dollars or sterling. The sterling value of the dividend is fixed one week prior to the payment date.

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• PRS REIT PLC (LON: PRSR)

It is a closed-ended real estate investment trust (REIT). It invests in best-quality, newly constructed, family homes in the private rented sector (PRS). It is creating a portfolio of newly-built homes across the major towns and cities of England.

On 7 May 2021, 14:39 pm GMT+1, its stock pegged at GBX 97.10. It has paid an interim quarterly dividend of 1.0 pence per share for the second quarter (October-December ’20). The stock has given a 1-year return of 47.53 percent.

The stock has a target of a minimum total dividend of 4.0 pence per ordinary share for its’ current financial year ending 30 June 2021.

• EVRAZ PLC (LON:EVR)

It is a mining company also engaged in steel production. Headquartered in the UK, it has a market in over 70 countries with key locations in Russia and North America. It is an active constituent of the FTSE 100 index.

Shares pegged at GBX 685.60, on 7 May 2021, 14:41 pm GMT+1. It has a dividend yield of 5.67 percent on investment.

It announced an interim dividend of USD 0.20 per share on 15 April 2021. The company provides an option to receive dividends in pounds sterling or Euros other than US dollar.

• Imperial Brands PLC (LON: IMB)

It is a British multinational tobacco company. Its five priority markets are US, UK, Spain, Germany and Australia. Its’ cigarette brands include JPS, West, Davidoff and others. It also has popular heated tobacco offerings in the US and Europe.

Its Share, traded at GBX 1,613.00 on 7 May 2021, 14:42 pm GMT+1. It provides a dividend yield of 8.96 per cent to investors. This is far better than the Industry average of 3.73%.

It is showing growth in its operating profits and market share COVID-19 affecting consumer buying patterns. The group expects its’ net revenue to grow by at least 1 per cent on an organic basis, driven by strong pricing.

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