AUS
NZ
UK
CA
USA
IND
Summary
- Dividend investing is a popular investment strategy for those seeking a steady and stable income stream from their equity investments.
- Some companies had paused dividend pay-outs in 2020 due to pandemic related uncertainty but have resumed this year as the economy is slowly moving back on track.
- Some of the top FTSE listed dividend-paying stocks include Evraz, Imperial Brands and others.
Dividend investing is a popular investment method among investors who are seeking to have an income stream from their equity investments. Such types of stocks are also a way to help diversify a portfolio investment.
While some companies had paused dividend pay-outs during the peak of the pandemic, they have resumed making dividend pay-outs as the economy has reopened in phases and slowly moving back on track.
In this article, we take a look at the top 10 highest yielding dividend stocks listed in the LSE FTSE indices (excluding special dividends) with a market cap of over £5 billion.
- EVRAZ plc (LON: EVR)
FTSE 100 listed EVRAZ plc is involved in the steel and mining sector and headquartered in London, UK. It has the highest five-year average dividend yield of any FTSE 100 constituents at 9.7 per cent.
The company also has an FY 2020 dividend coverage ratio of 0.97. It’s market cap as of 5 July stood at £8.86 billion, and its year to date returns were 29.94 per cent.
Evraz’s reported total revenue of FY 2020 was at USD 9.754 billion, and its FY 2020 dividend per share was 60 cents.
- M&G PLC (LON: MNG)
FTSE 100 constituent M&G is a global investment management company. It has the second highest five-year average dividend yield in the FTSE 100 index at 9.3 per cent.
It’s market cap as of 5 July stood at £5.925 billion, and its year-to-date returns were 16.59 per cent. M&G’s total revenue for FY 2020 stood at £988 million, and its ordinary dividend pay-out stood at 12.23 pence per share.
- Imperial Brands PLC (LON: IMB)
FTSE 100 index listed company Imperial Brands is the world’s fourth largest tobacco company. It’s five-year average dividend yield stands at 8.0 per cent.
Imperial Brand’s market cap as of 5 July stood at £14.868 billion and its year-to-date returns were 2.54 per cent. Its total revenue for FY 2020 stood at £32.562 billion, and its dividend per share stood at 137.71 pence per share.
Imperial Brand’s FY 2020 dividend coverage ratio stood at 1.15x.
- BT Group PLC (LON: BT. A)
Telecommunications giant and also an FTSE 100 constituent BT Group is another high dividend yielding stock on the FTSE. It’s five-year average dividend yield stands at 7.3 per cent.
BT group’s market cap as of 5 July stood at £19.340 billion, and its year-to-date returns were 47.60 per cent. Its total revenue in FY 2020 stood at £22.905 billion, and its dividend per share stood at 4.62 pence per share.
BT group’s FY 2020 dividend coverage ratio was 3.79x.
- Persimmon PLC (LON: PSN)
Persimmon PLC is a UK based home building company and a part of the FTSE 100 index.
It’s five-year average dividend yield stands at 7.2 per cent.
Persimmon’s market cap as of 5 July stood at £9.640 billion, and its year-to-date returns were 9.32 per cent. Its total group revenue for FY 2020 stood at £3.33 billion, and its dividend per share stood at 110 pence per share.
Also Read: 15 Best Dividend paying Stocks in the UK
- BP PLC (LON: BP.)
FTSE 100 listed oil and gas major BP PLC is another high yielding stock. It’s five-year average dividend yield stands at 7.1 per cent.
BP’s market cap as of 5 July stood at £65.048 billion, and its year-to-date returns were 27.28 per cent. Its total group revenue for FY 2020 stood at USD 180.626 billion, and its dividend per share stood at 31.50 cents per share.
- Standard Life Aberdeen PLC (LON: SLAL)
Standard Life Aberdeen is a UK domiciled global life assurance company. It’s five-year average dividend yield stands at 6.9 per cent.
Standard Life Aberdeen’s revenue as of FY 2020 stood at £1.425 billion, and its full-year dividend per share stood at 14.6 pence per share.
- SSE PLC (LON: SSE)
FTSE 100 listed multination energy company SSE PLC is another high yielding stock with a five-year average dividend yield of 6.9 per cent.
SSE’s market cap as of 5 July stood at £15.777 billion, and its year-to-date returns were 0.92 per cent. Its total revenue as of FY 2020 stood at £6.800 billion, and its dividend per share stood at 80.00 pence per share.
SSE’s FY 2020 dividend coverage ratio was a multiple of 0.51.
- Phoenix Group Holdings PLC (LON: PHNX)
FTSE 100 constituent and UK based holding company Phoenix Group is involved in insurance related activities through its subsidiary companies. Its five-year average dividend yield stands at 6.6 per cent.
Phoenix Group’s market cap as of 5 July stood at £6.767 billion. Its total revenue net of insurance payable for FY 2020 stood at £4.704 billion, and its interim dividend stood at 23.4 pence per share for 1H 2020, ending 30 June 2020.
- Vodafone Group PLC (LON: VOD)
FTSE 100 company and telecom giant Vodafone Group’s five-year average dividend yield stands at 6.4 per cent.
Vodafone Group’s market cap as of 5 July stood at £34.012 billion, and its year-to-date returns were 0.83 per cent. Its total revenue for FY 2020 stood at £44.974 billion, and its dividend per share stood at 9.00 cents per share.
Also Read: Top dividend stocks paying more than 7% on FTSE
