Vodafone (VOD) & Evraz (EVR): 2 dividend stocks for your retirement

October 19, 2021 07:40 AM BST | By Suhita Poddar
 Vodafone (VOD) & Evraz (EVR): 2 dividend stocks for your retirement
Image source: jittawit21, Shutterstock.com

Highlights 

  • FTSE 100 index is set to deliver a dividend yield of 4.1 per cent in 2021
  • This is the first time the index will see dividend growth since the beginning of the pandemic

Dividends of FTSE 100 index constituents are expected to be back to their pre-pandemic levels, with the blue-chip index forecast to have a dividend yield of 4.1 per cent in 2021.

The index’s total dividend pay-out is expected to reach £84.1 billion in 2021, up by 36 per cent from £61.8 billion in 2020, according to the online investment platform AJ Bell’s most recent Dividend Monitor report. This is the first time the index will see dividend growth since 2018.

Most importantly, the growth is expected to come primarily from 10 stocks in the index, with mostly mining companies contributing to the index’s dividend growth.

The report also found that roughly five or six companies would contribute to the index’s dividend growth in 2021 and only 2 companies in 2022. However, concerns of stagflation could be a potential downside risk to dividends.

Let us take a look at 2 dividends paying FTSE 100 index stocks and their investment prospects:

  1. Vodafone Group PLC (LON: VOD)

Vodafone is a British multinational telecom giant. The group recently stated its goal of connecting 3.4 billion people to the internet via smartphones by 2030. The goal will be carried out in collaboration with ITU, a UN agency specializing in ICT.  

According to AJ Bell’s Q3 2021 Dividend Monitor, Vodafone is forecasted to have a dividend payout of £2,152 million, a dividend yield of 6.3 per cent and a dividend cover ratio multiple of 0.89 in 2021.

The company’s shares closed at GBX 109.44, down by 0.91 per cent on 18 October 2021,  while the FTSE 100 index ended at 7,203.83, down by 0.42 per cent.

The company’s market cap stands at £30,066.10 million, and it has a one-year return of 0.07 per cent as of 18 October 2021.

EVR, VOD current market cap and 2021 dividend yield estimate

© 2021 Kalkine Media

  1. Evraz PLC (LON: EVR)

Evraz is a UK based multinational vertically integrated steel and mining company.

The company recently agreed to a sustainability linked loan of US$ 150 million, which is expected to mature in Q2 2026.

The loan’s interest rate will be dependent on Evraz’s performance on its ESG management score on Sustainalytics, ESG ratings, research and analytics firm.

According to AJ Bell’s Q3 2021 Dividend Monitor, Evraz is forecasted to have a dividend payout of £1,560 million, dividend yield of 17.9 per cent and dividend cover ratio of a multiple of 1.33 in 2021.

The company’s shares closed at GBX 629.20 on 18 October 2021.  The company’s market cap stands at £9,183.91 million, and it has a one-year return of 74.36 per cent as of 18 October 2021.


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.


Sponsored Articles


Investing Ideas

Previous Next