Which 5 FTSE shares you can buy for good passive income?

4 min read | January 08, 2022 12:39 AM GMT | By Rishika Raina

Highlights

  • Regular dividend-paying stocks are a good source of earning passive income.
  • During times of high market volatility, dividend stocks tend to perform better than growth stocks due to a lesser fall in their value.

Regular dividend-paying stocks are a good source of earning passive income for stock market investors. A certain part of the total earnings of public companies is returned to the investors in the form of dividends. These dividend payments can be used by the investors to generate more wealth through reinvestments in additional shares.

Dividend payments can make up for a significant percentage of the total returns earned by investors from the stock market in the long run despite appearing to be somewhat insignificant in the short run.

During times of high market volatility, dividend stocks tend to perform better than growth stocks due to a lesser fall in their value. Thus, adding high-yield dividend stocks to the investors’ portfolio helps in diversification as well as the creation of a sizable passive income stream.

Here we will be discussing 5 FTSE stocks that are offering high dividend yields to investors.

Dividend stocks providing passive income to investors

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Evraz plc (LON: EVR)

Evraz plc is a London-headquartered multinational company that is engaged in vertically integrated steel manufacturing and mining. On 14 January 2022, the company is expected to pay an interim dividend of US$0.20 per share to its shareholders, as announced by the company in December 2021.

EVR’s market cap stands at £8,991.36 million, and as of 6 January 2022, it has given a return of 17.49% to its shareholders in the last one year. Evraz plc’s dividend yield stands at 12.8% for a year and at 11.1% for a 5-year average.

BHP Group PLC (LON: BHP)

Australia-headquartered BHP Group PLC is an international resources company that is engaged in the production of iron ore, copper, and nickel etc. In the first half of 2021, the profits of the company went up by 42% and reached $11.30 billion. Last month, the world’s second-largest mining company got the regulatory approvals to unify its corporate structure.

BHP’s market cap stands at £47,416.01 million, and as of 6 January 2022, it has given a return of 3.01% to its shareholders in the last one year. BHP Group Plc’s dividend yield stands at 9.9% for a year and at 5.5% for a 5-year average.  

VPC Specialty Lending Investments PLC (LON: VSL)

VPC Specialty Lending Investments PLC helps businesses to generate income by providing them with asset-backed lending solutions. In the first half of 2021, the total net assets of the company stood at £295.5m as of 30 June 2021, and it offered a dividend per share of 4.00p.

VSL’s market cap stands at £256.29 million, and as of 6 January 2022, it has given a return of 16.29% to its shareholders in the last one year. VPC Specialty Lending Investments Plc’s dividend yield stands at 12.8% for a year and at 11.1% for a 5-year average.

RELATED READ: Top 5 penny dividend stocks of 2021

Imperial Brands PLC (LON: IMB)

Bristol-headquartered Imperial Brands PLC is a leading British tobacco company. It is one of the largest tobacco companies worldwide and was earlier known as Imperial Tobacco Group plc. According to its annual results, the company generated a revenue of £32,791m for the year ended 30 September 2021 while offering a dividend per share of 139.08p.

IMB’s market cap stands at £15,506.90 million, and as of 6 January 2022, it has given a return of 2.70% to its shareholders in the last one year. Imperial Brands Plc’s dividend yield stands at 8.5% for a year and at 8.6% for a 5-year average.

M&G plc (LON:MNG)

M&G plc is a London-headquartered investment management firm that deals in a variety of assets such as equities, real estate, and fixed income. On 5 January, the company announced that it had chosen Bloomberg Data Management Services (DMS) to manage its ESG data.

MNG’s market cap stands at £5,371.41 million, and as of 6 January 2022, it has given a return of 1.57% to its shareholders in the last one year. M&G Plc’s dividend yield stands at 8.9% for a year and at 9.00% for 5-year.


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