Dividend stocks to watch in November

November 09, 2022 06:30 AM GMT | By Rishika Raina
Follow us on Google News:

Highlights

  • With the recent hike in interest rates, the UK is facing the longest recession since records started.
  • The country's GDP is expected to decrease by nearly 0.75% over the second half of 2022, as per BoE's data.
  • Chancellor Jeremy Hunt is contemplating a tax hit on dividends, which might help raise approximately £50 billion.

With the recent hike in interest rates, the UK is facing the longest recession since records started, per the Bank of England's warning given last Thursday. The downward spiraling economy is expected to continue moving in that direction well into 2024. During the two-year long recession, unemployment would potentially double up to 6.5%, further darkening the country's economic outlook.

                                                        ©2022 Kalkine Media®

Amid the rising bills and squeezing real incomes, the country's GDP is expected to decrease by nearly 0.75% over the second half of 2022, as per BoE's data. Escalating prices are expected to drive this decline into next year and the first half of 2024. The government, spending billions to bring the economy back on track, is looking for ways to plug the growing fiscal hole.

Chancellor Jeremy Hunt is therefore contemplating a tax hit on dividends. The move might help in raising approximately £50 billion, and although no ruling has come out yet, Hunt has reportedly demanded administrators to evaluate boosting the dividend taxation rate along with slashing the tax-free dividend allowance.

Amid these developments, UK investors can keep an eye on the following dividend-paying stocks trading on the London Stock Exchange.

Rio Tinto plc (LON: RIO)

The globally leading mining business Rio Tinto plc's current dividend yield offering stands at 11.8%. As of 8 November, at around 8:30 AM (GMT), RIO shares were down by 0.28%, or 14 points, trading at GBX 5,030.00. The market capitalisation of the FTSE100 group at the time of writing stands at £63,026.11 million. Meanwhile, its returns on YTD (year to date) and one-year basis stand at 2.78% and 13.64%, respectively. The EPS (earning per share) of the group lies at 13.03.

Diversified Energy Company plc (LON: DEC)

The gas and oil-producing business Diversified Energy Company plc's current dividend yield offering stands at 11.5%. As of 8 November, at around 8:30 AM (GMT), DEC shares were down by 0.61%, or 0.80 points, trading at GBX 129.70. The market capitalisation of the FTSE250 group at the time of writing stands at £1,100.07 million. Meanwhile, its returns on YTD and one-year basis stand at 24.43% and 24.90%, respectively. The EPS of the group lies at -0.41.

ContourGlobal plc (LON: GLO)

The UK-based electric service provider ContourGlobal plc's current dividend yield offering, stands at 8.5%. As of 8 November, at around 8:30 AM (GMT), GLO shares were trading at GBX 254.00. The market capitalisation of the FTSE250 group at the time of writing stands at £1,668.84 million. Meanwhile, its returns on YTD and one-year basis stand at 33.23% and 32.12%, respectively. The EPS of the group lies at 0.12. 


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.