Top 4 FTSE dividend stocks from mining & banking sector

Highlights

• Record dividend payout was given to shareholders in 2021, with Banking and Mining sector companies taking the lead and announcing bumper dividends.
• Metal & Mining sector companies gave the highest dividend payouts, followed by the banking sector.

The UK stock market witnessed an exciting year in 2021. The benchmark FTSE100 index bounced back from its lower levels to trade above the pre-pandemic market levels in 2021. As the pandemic situation improved and the economy seemed back on track, many companies resumed their dividend payout, and a record payout was given to shareholders in 2021.

Banking and Mining sector companies gave bumper dividend payouts. Metal & Mining sector companies reported the highest dividend payouts amongst all sectors driven by the rise in revenues and profitability. The gradual increase in commodity prices amid higher demand and economic recovery made it possible. At the same time, Banking stocks resumed dividend payouts to their shareholders after the Bank of England (BoE) eased restrictions in the second half of 2021.

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Let us look at some of the FTSE listed stocks from the above-mentioned sectors that provided the highest dividend yield:

Two top dividend yield stocks from Mining Sector:

Ferrexpo Plc (LON: FXPO)

FTSE 250 listed company is engaged in mining and processing of high-quality iron ore pellets mainly used in steel manufacturing. The company paid a total dividend of 46.2 US cents per ordinary share in 2021 to its shareholders mainly due to solid business performance throughout the year due to higher iron ore prices in international markets. The company’s total full-year production stood at 11.2 million tonnes in 2021 due to high demand from the global steel industry.

Ferrexpo Plc’s current market cap stands at £1,377.3 million, while its dividend yield is at 12.5% as of 25 January 2022.

Polymetal International Plc (LON: POLY)

The company operates in the mining of precious metals like gold and silver. It is one of the largest gold & silver miners globally and has a portfolio of nine mines in different parts of the world.

The company reported a rise in production output in the first nine months of 2021, resulting in higher sales revenue. Its total revenue was at USD 2,093 million during the period driven by higher gold and silver prices in the international market.

Polymetal International Plc’s current market cap stands at £5,361 million, while its dividend yield is at 9.1% as of 25 January 2022.

Two top dividend yield stocks from Banking Sector:

HSBC Holdings Plc (LON: HSBA)

The banking and finance service provider has operations across different regions. It is one of the largest global financial institutes that provides different financial services to retail and institutional clients.

The bank reported a revenue of USD 37.6 billion in the first nine months of 2021. The economic recovery after the Covid-19 pandemic had a positive impact on the company’s business leading to improved net interest margins. The business outlook for the new financial year is positive, and the company expects further improvement in revenues and margins. In addition, the company intends to distribute its gains to shareholders through share buyback and dividend payouts.

HSBC Holdings Plc’s current market cap stands at £99,848 million, while its dividend yield is at 7.7% as of 25 January 2022.

Lloyds Banking Group Plc (LON: LLOY)

The company provides retail and institutional banking solutions in the UK and other countries through various popular brands like Lloyds Bank, Bank of Scotland, etc.

The lender reported excellent financial performance in the first nine months of 2021, reporting a profit before tax of £5,103 million (FY 2020: £620 million) mainly due to economic recovery and improvement in net interest income.

Lloyds Banking Group Plc’s current market cap stands at £34,992 million, while its dividend yield is at 7.1% as of 25 January 2022.