Highlights
- Investing in dividend stocks helps investors in creating a passive income stream and a diversified portfolio.
- Dividend yield is the financial ratio which helps investors in analysing if the pay-out is sustainable or not.
Investing in dividend stocks allows investors to create a dependable stream of passive income and helps in the diversification of their portfolio. The financial standing of the companies offering dividends is generally very strong and thus the dividend pay-outs represent how valuable the stock of a company is.
For creating a healthy dividend investing portfolio, investors should first consider the balance sheet, business model, and other valuations of the companies. Rising dividends can lead to exponential growth of the investors’ portfolio.
2022 Kalkine Media®
Dividend yield is the financial ratio that helps investors in analysing if the pay-out is sustainable or not. Its value can be calculated by dividing the yearly dividend per share by the share price. Investing in higher-yielding shares may help the investors in increasing their dividend income and making their portfolio stronger. Generally, unhealthy companies that don’t have a proven track record do not pay out dividends, while companies which have a robust financial background are the ones who reward their shareholders through dividends.
Here are 3 LSE-listed dividend-paying stocks that investors can keep an eye on in April.
Diversified Energy Company PLC (LON: DEC)
Diversified Energy Company plc, which is a component of the FTSE 250 index, is an oil and gas producing firm. It has given its shareholders a return of 7.53% over the last one year as of 1 April 2022, while its return stands at 14.41% on year-to-date basis. Diversified Energy Company plc is currently offering a dividend yield of 10.6% a year. With a market cap of £1,008.65 million, Diversified Energy Company plc’s shares were trading at GBX 119.20, up by 0.51%, at 2:29 PM (GMT +1) on 1 April 2022.
2022 Kalkine Media®
Rio Tinto plc (LON: RIO)
Rio Tinto plc, which is a component of the FTSE 100 index, is a leading metals and mining group. It has given its shareholders a return of 10.70% over the last one year as of 1 April 2022, while its return stands at 25.67% on year-to-date basis. Rio Tinto plc is currently offering a dividend yield of 9.9% a year. With a market cap of £75,964.81 million, Rio Tinto plc’s shares were trading at GBX 6,146.00, up by 1.07%, at 2:31 PM (GMT +1) on 1 April 2022.
RELATED READ: Top 5 dividend-paying consumer stocks to keep an eye on
VPC Specialty Lending Investments plc (LON: VSL)
VPC Specialty Lending Investments plc offers investment management and lending services to its clients. It has given its shareholders a return of 6.92% over the last one year as of 1 April 2022, however its performance has depreciated this year with its year-to-date return standing at -3.03%. VPC Specialty Lending Investments plc is currently offering a dividend yield of 8.9% a year. With a market cap of £249.89 million, VPC Specialty Lending Investments plc’s shares were trading at GBX 89.60, down by 0.22%, at 2:33 PM (GMT +1) on 1 April 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.