If you’re an income investor in UK, then look no further. Here, we’ll share the entire list of FTSE 100 dividend paying stocks (you’d be pleasantly surprised that many of them do) and short analysis on the top 10 FTSE dividend paying stocks by yield.
Let’s jump right in:
FTSE 100 Dividend Payers by Yield
| Ticker | Company | Expected Dividend Yield | Forward Dividend (GBP) | Ex-dividend date | Sector | Market cap (m) |
|---|---|---|---|---|---|---|
| PSN | PERSIMMON PLC ORD 10P | 12.49% | 2.35 | 16 Jun 2022 | Consumer Cyclical | 6,015.94 |
| RIO | RIO TINTO PLC ORD 10P | 10.73% | 5.28 | 11 Aug 2022 | Basic Materials | 61,842.69 |
| TW. | TAYLOR WIMPEY PLC ORD 1P | 10.01% | 0.13 | 31 Mar 2022 | Consumer Cyclical | 4,489.15 |
| ANTO | ANTOFAGASTA PLC ORD 5P | 9.66% | 1.12 | 21 Apr 2022 | Basic Materials | 11,421.15 |
| ABDN | ABRDN PLC ORD 13 61/63P | 8.81% | 0.15 | 07 Apr 2022 | Financial Services | 3,591.51 |
| MNG | M&G PLC ORD £0.05 | 8.58% | 0.18 | 17 Mar 2022 | Financial Services | 5,399.24 |
| PHNX | PHOENIX GROUP HOLDINGS PLC ORD 10P | 7.94% | 0.5 | 31 Mar 2022 | Financial Services (Insurance) | 6,437.93 |
| IMB | IMPERIAL BRANDS PLC ORD 10P | 7.75% | 1.4 | 18 Aug 2022 | Consumer Defensive | 17,097.84 |
| AV. | AVIVA PLC ORD 32 17/19P | 7.33% | 0.29 | 16 May 2022 | Financial Services (insurance) | 11,098.70 |
| AAL | ANGLO AMERICAN PLC ORD USD0.54945 | 7.26% | 2.14 | 17 Mar 2022 | Basic Materials | 39,458.55 |
| LGEN | LEGAL & GENERAL GROUP PLC ORD 2 1/2P | 7.07% | 0.18 | 21 Apr 2022 | Financial Services | 15,588.43 |
| ADM | ADMIRAL GROUP PLC ORD 0.1P | 6.78% | 1.3 | 05 May 2022 | Financial Services (insurance) | 5,751.96 |
| BATS | BRITISH AMERICAN TOBACCO PLC ORD 25P | 6.76% | 2.18 | 29 Sep 2022 | Consumer Defensive | 72,586.43 |
| BDEV | BARRATT DEVELOPMENTS PLC ORD 10P | 6.61% | 0.33 | 07 Apr 2022 | Consumer Cyclical | 5,123.04 |
| VOD | VODAFONE GROUP PLC ORD USD0.20 20/21 | 6.40% | 0.08 | 01 Jun 2022 | Communication Services | 33,757.85 |
| SBRY | SAINSBURY(J) PLC ORD 28 4/7P | 5.93% | 0.13 | 09 Jun 2022 | Consumer Defensive | 5,179.73 |
| BME | B&M EUROPEAN VALUE RETAIL S.A. ORD 10P (DI) | 5.42% | 0.23 | 30 Jun 2022 | Consumer Defensive | 4,248.21 |
| LAND | LAND SECURITIES GROUP PLC ORD 10 2/3P | 5.28% | 0.39 | 25 Aug 2022 | Real Estate | 5,421.84 |
| SMDS | SMITH (DS) PLC ORD 10P | 5.15% | 0.15 | 06 Oct 2022 | Consumer Cyclical | 4,007.85 |
| ICP | INTERMEDIATE CAPITAL GROUP PLC ORD 26 1/4P | 5.00% | 0.76 | 16 Jun 2022 | Financial Services | 4,420.76 |
| GSK | GSK PLC ORD 31 1/4P | 4.99% | 0.86 | 18 Aug 2022 | Healthcare | 70,267.57 |
| SSE | SSE PLC ORD 50P | 4.85% | 0.86 | 28 Jul 2022 | Utilities | 18,876.62 |
| KGF | KINGFISHER PLC ORD 15 5/7P | 4.80% | 0.12 | 19 May 2022 | Consumer Cyclical | 5,147.42 |
| BT.A | BT GROUP PLC ORD 5P | 4.76% | 0.08 | 04 Aug 2022 | Communication Services | 16,064.40 |
| LLOY | LLOYDS BANKING GROUP PLC ORD 10P | 4.71% | 0.02 | 04 Aug 2022 | Financial Services (Banks) | 30,990.83 |
| HL. | HARGREAVES LANSDOWN PLC ORD 0.4P | 4.58% | 0.39 | 03 Mar 2022 | Financial Services | 4,023.17 |
| STJ | ST.JAMES'S PLACE PLC ORD 15P | 4.56% | 0.56 | 25 Aug 2022 | Financial Services | 6,675.16 |
| NG. | NATIONAL GRID PLC ORD 12 204/473P | 4.50% | 0.51 | 01 Jun 2022 | Utilities | 41,296.49 |
| BLND | BRITISH LAND CO PLC ORD 25P | 4.46% | 0.22 | 23 Jun 2022 | Real Estate | 4,560.11 |
| NWG | NATWEST GROUP PLC ORD 100P | 4.42% | 0.11 | 25 Aug 2022 | Financial Services (Banks) | 25,869.62 |
| GLEN | GLENCORE PLC ORD USD0.01 | 4.34% | 0.2 | 01 Sep 2022 | Basic Materials | 60,486.46 |
| TSCO | TESCO PLC ORD 6 1/3P | 4.18% | 0.11 | 19 May 2022 | Consumer Defensive | 19,675.40 |
| BP. | BP PLC $0.25 | 4.14% | 0.17 | 12 May 2022 | Energy | 76,198.29 |
| SDR | SCHRODERS PLC VTG SHS £1 | 4.11% | 1.22 | 04 Aug 2022 | Financial Services | 6,712.87 |
| UU. | UNITED UTILITIES GROUP PLC ORD 5P | 4.06% | 0.43 | 23 Jun 2022 | Utilities | 7,432.58 |
| BARC | BARCLAYS PLC ORD 25P | 3.98% | 0.06 | 11 Aug 2022 | Financial Services (Banks) | 25,635.57 |
| SHEL | SHELL PLC ORD EUR0.07 | 3.81% | 0.83 | 11 Aug 2022 | Energy | 160,067.87 |
| HSBA | HSBC HLDGS PLC ORD $0.50 (UK REG) | 3.69% | 0.19 | 10 Mar 2022 | Financial Services (Banks) | 102,677.75 |
| III | 3I GROUP PLC ORD 73 19/22P | 3.66% | 0.47 | 16 Jun 2022 | Financial Services | 12,355.41 |
| SKG | SMURFIT KAPPA GROUP PLC ORD EUR0.001 (CDI) | 3.66% | 1.09 | 29 Sep 2022 | Consumer Cyclical | 7,723.02 |
| ULVR | UNILEVER PLC ORD 3 1/9P | 3.60% | 1.44 | 04 Aug 2022 | Consumer Defensive | 102,027.80 |
| FRES | FRESNILLO PLC ORD USD0.50 | 3.57% | 0.26 | 28 Apr 2022 | Basic Materials | 5,433.85 |
| MNDI | MONDI PLC ORD EUR 0.20 | 3.53% | 0.55 | 07 Apr 2022 | Basic Materials | 7,523.66 |
| WPP | WPP PLC ORD 10P | 3.53% | 0.31 | 09 Jun 2022 | Communication Services | 9,651.74 |
| SVT | SEVERN TRENT PLC ORD 97 17/19P | 3.51% | 1.02 | 01 Jun 2022 | Utilities | 7,410.07 |
| BA. | BAE SYSTEMS PLC ORD 2.5P | 3.32% | 0.26 | 20 Oct 2022 | Industrials | 24,309.47 |
| DCC | DCC PLC ORD EUR0.25 (CDI) | 3.29% | 1.76 | 26 May 2022 | Energy | 5,280.01 |
| CRH | CRH PLC ORD EUR 0.32 (CDI) | 3.01% | 0.95 | 10 Mar 2022 | Basic Materials | 23,799.93 |
| CCH | COCA-COLA HBC AG ORD CHF6.70 (CDI) | 2.98% | 0.6 | 07 Jul 2022 | Consumer Defensive | 7,372.42 |
| HWDN | HOWDEN JOINERY GROUP PLC ORD 10P | 2.94% | 0.2 | 13 Oct 2022 | Consumer Cyclical | 3,793.36 |
| SN. | SMITH & NEPHEW PLC ORD USD0.20 | 2.90% | 0.3 | 29 Sep 2022 | Healthcare | 9,139.16 |
| PSON | PEARSON PLC ORD 25P | 2.71% | 0.2 | 24 Mar 2022 | Communication Services | 5,574.10 |
| EDV | ENDEAVOUR MINING PLC ORD USD0.01 | 2.68% | 0.43 | 10 Feb 2022 | Basic Materials | 3,974.22 |
| WTB | WHITBREAD PLC ORD 76 122/153P | 2.67% | 0.69 | 26 May 2022 | Consumer Cyclical | 5,248.55 |
| AVST | AVAST PLC ORD 10P | 2.66% | 0.12 | 21 Jul 2022 | Technology | 4,843.97 |
| RKT | RECKITT BENCKISER GROUP PLC ORD 10P | 2.63% | 1.75 | 04 Aug 2022 | Consumer Defensive | 47,547.69 |
| BRBY | BURBERRY GROUP PLC ORD 0.05P | 2.62% | 0.47 | 30 Jun 2022 | Consumer Cyclical | 7,097.65 |
| SGE | SAGE GROUP PLC ORD 1 4/77P | 2.55% | 0.18 | 26 May 2022 | Technology | 7,176.23 |
| AAF | AIRTEL AFRICA PLC ORD USD0.50 | 2.50% | 0.04 | 23 Jun 2022 | Communication Services | 5,967.94 |
| SMIN | SMITHS GROUP PLC ORD 37.5P | 2.48% | 0.38 | 07 Apr 2022 | Industrials | 5,599.99 |
| ITRK | INTERTEK GROUP PLC ORD 1P | 2.42% | 1.06 | 15 Sep 2022 | Industrials | 7,062.56 |
| CNA | CENTRICA PLC ORD 6 14/81P | 2.28% | 0.02 | 06 Oct 2022 | Utilities | 5,180.94 |
| SGRO | SEGRO PLC ORD 10P | 2.28% | 0.25 | 11 Aug 2022 | Real Estate | 13,239.54 |
| UTG | UNITE GROUP PLC ORD 25P | 2.28% | 0.27 | 15 Sep 2022 | Real Estate | 4,660.98 |
| HIK | HIKMA PHARMACEUTICALS PLC ORD SHS 10P | 2.25% | 0.39 | 17 Mar 2022 | Healthcare | 3,807.87 |
| ABF | ASSOCIATED BRITISH FOODS PLC ORD 5 15/22P | 2.05% | 0.34 | 09 Jun 2022 | Consumer Defensive | 13,236.79 |
| REL | RELX PLC ORD 14 51/116P | 2.05% | 0.5 | 28 Apr 2022 | Communication Services | 46,593.57 |
| DGE | DIAGEO PLC ORD 28 101/108P | 1.96% | 0.76 | 25 Aug 2022 | Consumer Defensive | 88,474.11 |
| AZN | ASTRAZENECA PLC ORD SHS $0.25 | 1.93% | 2.22 | 11 Aug 2022 | Healthcare | 168,025.74 |
| STAN | STANDARD CHARTERED PLC ORD USD0.50 | 1.89% | 0.11 | 11 Aug 2022 | Financial Services (Banks) | 16,744.46 |
| NXT | NEXT PLC ORD 10P | 1.87% | 1.27 | 07 Jul 2022 | Consumer Cyclical | 8,797.66 |
| BNZL | BUNZL PLC ORD 32 1/7P | 1.86% | 0.57 | 19 May 2022 | Consumer Defensive | 10,366.21 |
| RS1 | RS GROUP PLC ORD 10P | 1.74% | 0.18 | 16 Jun 2022 | Industrials | 4,865.78 |
| AVV | AVEVA GROUP PLC ORD 3 5/9P | 1.68% | 0.38 | 07 Jul 2022 | Technology | 7,109.38 |
| EXPN | EXPERIAN PLC ORD USD0.10 | 1.45% | 0.41 | 23 Jun 2022 | Industrials | 26,356.19 |
| AHT | ASHTEAD GROUP PLC ORD 10P | 1.40% | 0.64 | 11 Aug 2022 | Industrials | 20,256.81 |
| IHG | INTERCONTINENTAL HOTELS GROUP PLC ORD 20 340/399P | 1.39% | 0.68 | 31 Mar 2022 | Consumer Cyclical | 8,919.27 |
| PSH | PERSHING SQUARE HOLDINGS LTD ORD NPV | 1.39% | 0.37 | 18 Aug 2022 | Financial Services | 5,296.62 |
| CRDA | CRODA INTERNATIONAL PLC ORD 10.609756P | 1.38% | 1.03 | 08 Sep 2022 | Basic Materials | 10,447.52 |
| PRU | PRUDENTIAL PLC ORD 5P | 1.33% | 0.13 | 24 Mar 2022 | Financial Services (Insurance) | 27,658.11 |
| AUTO | AUTO TRADER GROUP PLC ORD 1P | 1.30% | 0.08 | 24 Aug 2022 | Communication Services | 5,933.77 |
| RTO | RENTOKIL INITIAL PLC ORD 1P | 1.24% | 0.07 | 04 Aug 2022 | Industrials | 10,087.06 |
| RMV | RIGHTMOVE PLC ORD 0.1P | 1.21% | 0.08 | 29 Sep 2022 | Communication Services | 5,356.19 |
| CPG | COMPASS GROUP PLC ORD 11 1/20P | 1.20% | 0.23 | 09 Jun 2022 | Consumer Cyclical | 33,885.04 |
| LSEG | LONDON STOCK EXCHANGE GROUP PLC ORD SHS 6 79/86P | 1.19% | 0.95 | 28 Apr 2022 | Financial Services | 40,968.32 |
| SPX | SPIRAX-SARCO ENGINEERING PLC ORD 26 12/13P | 1.14% | 1.36 | 21 Apr 2022 | Industrials | 8,803.98 |
| DPH | DECHRA PHARMACEUTICALS PLC ORD 1P | 1.12% | 0.41 | 03 Mar 2022 | Healthcare | 4,191.06 |
| MRO | MELROSE INDUSTRIES PLC ORDS 160/21P | 1.09% | 0.02 | 07 Apr 2022 | Industrials | 6,553.77 |
| INF | INFORMA PLC ORD 0.1P | 1.01% | 0.06 | 11 Aug 2022 | Communication Services | 8,616.42 |
| HLMA | HALMA PLC ORD 10P | 0.82% | 0.19 | 14 Jul 2022 | Industrials | 8,728.05 |
| SMT | SCOTTISH MORTGAGE INV TST PLC ORD 5P | 0.43% | 0.04 | 01 Jun 2022 | Financial Services | 12,400.95 |
| JD. | JD SPORTS FASHION PLC ORD 0.05P | 0.27% | 0 | 07 Jul 2022 | Consumer Cyclical | 6,682.36 |
| BKG | BERKELEY GROUP HOLDINGS (THE) PLC ORD 5.4141P | na | na | Mar 4, 2021 | Consumer Cyclical | 4,671.55 |
| ENT | ENTAIN PLC ORD EUR0.01 | na | na | 12 Mar 2020 | Consumer Cyclical | 7,080.10 |
| FLTR | FLUTTER ENTERTAINMENT PLC ORD EUR0.09 (CDI) | na | na | 09 Apr 2020 | Consumer Cyclical | 14,466.53 |
| HLN | HALEON PLC ORD GBP1.25 | na | na | na | Healthcare | 26,946.49 |
| IAG | INTL CONSOLIDATED AIRLINES GROUP SA ORD EUR0.10 (CDI) | na | na | 02 Jul 2020 | Industrials | 5,880.82 |
| MGGT | MEGGITT PLC ORD 5P | na | na | 19 Mar 2020 | Industrials | 6,184.80 |
| OCDO | OCADO GROUP PLC ORD 2P | na | na | na | Consumer Defensive | 6,923.27 |
| RR. | ROLLS-ROYCE HOLDINGS PLC ORD SHS 20P | na | na | 23 Apr 2020 | Industrials | 7,469.75 |
As the world emerges from the pandemic, many of the companies in the FTSE 100 are starting to resume their dividend payouts after a 2 year break.
That said, due to the bearish macro markets, many of the FTSE 100 stocks are not sparred and their prices have been tumbling since the start of the year.
Combined, these reasons are why we’re seeing relatively high dividend yields from some of these UK blue chip stocks today.
If you’re looking for UK blue chip stocks with the best dividends, then read on:
Top 10 FTSE Dividend Stocks
| Company | Ticker | Expected Dividend Yield | Forward Dividend (GBP) | ex-dividend date | Sector | Market cap (m) |
|---|---|---|---|---|---|---|
| PERSIMMON PLC | PSN | 12.49% | 2.35 | 16 Jun 2022 | Consumer Cyclical | 6,015.94 |
| RIO TINTO PLC | RIO | 10.73% | 5.28 | 11 Aug 2022 | Basic Materials | 61,842.69 |
| TAYLOR WIMPEY PLC | TW. | 10.01% | 0.13 | 31 Mar 2022 | Consumer Cyclical | 4,489.15 |
| ANTOFAGASTA PLC | ANTO | 9.66% | 1.12 | 21 Apr 2022 | Basic Materials | 11,421.15 |
| ABRDN PLC | ABDN | 8.81% | 0.15 | 07 Apr 2022 | Financial Services | 3,591.51 |
| M&G PLC | MNG | 8.58% | 0.18 | 17 Mar 2022 | Financial Services | 5,399.24 |
| PHOENIX GROUP HOLDINGS PLC | PHNX | 7.94% | 0.5 | 31 Mar 2022 | Financial Services (Insurance) | 6,437.93 |
| IMPERIAL BRANDS PLC | IMB | 7.75% | 1.4 | 18 Aug 2022 | Consumer Defensive | 17,097.84 |
| AVIVA PLC | AV. | 7.33% | 0.29 | 16 May 2022 | Financial Services (insurance) | 11,098.70 |
| ANGLO AMERICAN PLC | AAL | 7.26% | 2.14 | 17 Mar 2022 | Basic Materials | 39,458.55 |
Do note that although these 10 dividend stocks are providing high yield today, it doesn’t mean that the yields would be sustainable.
So, remember to do your own due diligence and keep track of their performance over time, especially if you own any of these dividend paying stocks.
1) Persimmon (PSN) – 12.49%
Persimmon is a multinational homebuilding and construction company with headquarters in London, United Kingdom.
The company builds residential properties across the UK with three key brands that cover a wide market under its umbrella:
- Persimmon Homes (traditional family housing): 79% revenue
- Charles Church (larger homes in premium locations): 11% revenue
- Westbury Partnerships (affordable social housing): 10% revenue
Persimmon paid out 235p of dividends in 2021, up from the 110p in 2020. This year, it is expected to pay out about 235p in dividends, yielding about 12.49% against its share price at the point of writing:
Historically, Persimmon had been increasing its dividend payout annually since 2013, before pausing dividends in 2020 due to the pandemic. Persimmon could make an enticing dividend stock with steady payouts, if it can resume its dividend growth in the coming years.
If you prefer investing in REITs to developer stocks, refer to our pick of the Best REITs in UK.
2) Rio Tinto (RIO) – 10.73%
Rio Tinto is a multinational mining company that operates in many different countries all over the world. They are one of the largest producers of iron ores, aluminium, copper, and other minerals.
They have been growing steadily over the years, delivering good returns to shareholders.
RIO dropped their interim results on 27 Jul 2022 and announced an interim dividend of 267 cents per share (USD) or 2.22 GBP per share.
Historically, Rio Tinto has been increasing their dividends per share annually since 2015, even during the pandemic:
Rio Tinto’s dividend policy is to pay dividends twice a year, announcing dividend payout during their financial results at half and full year.
Based on the growth of their dividend payout, RIO seems like a good UK dividend stock to consider. We would keep a close watch on their debt-to-asset level over time to make sure that the company maintains or reduces it as the mining industry may be exposed to cyclical market trends and the company could find itself in heavy debt if the trend turns against them in the short run.
3) Taylor Wimpey (TW.) – 10.01%
Taylor Wimpey is a national residential developer with a strong landbank in UK within London Boroughs of the City of London, Westminster, Kensington & Chelsea, Hammersmith & Fulham, Camden, Southwark and Greenwich, as well as in Spain. They build a range of homes from apartments to six bedder houses.
Like many businesses, Taylor Wimpey’s business took a hit in the pandemic, reporting dips in FY2020. However, their business seems to be recovering well on several key indicators like:
- revenue: £4,284.9m (compared to FY19’s £4,341m)
- operating profit: £828.6m (compared to FY19’s £850.5m)
Taylor Wimpey’s dividend policy is to return 7.5% of net assets to shareholders annually and they had paid out 8.58 pence per share of dividends in FY 2021. Dividends for FY22 have not been announced at the point of writing.
If we were to take a look at their dividends per share, you’d notice that it is quite low. Taking a look at their share price, TW. is down -30% year-to-date.
I would take their current dividend yield with a pinch of salt and would prefer to monitor their business performance in coming months before deciding if its a suitable dividend stock for my portfolio.
4) Antofagasta (ANTO) – 9.66%
Antofagasta is a multinational copper mining company based in Chile. It operates four copper mines and is one of the most important conglomerates of Chile.
Antofagasta’s dividend policy aims to pay a “total annual dividend equal to at least 35% of underlying net earnings.”
As a mining company, Antofagasta is exposed to risks imposed by the natural elements. This was particularly significant in FY21 where the drought at Los Pelambres lead to production of lower grade copper. It is also noteworthy that of its 4 mines, 3 had reported lower production in 2021.
Another key risk is the currency exchange as ANTO operates in Chile while being listed on the London Stock Exchange. Changes in the forex between the Chilean peso and Pounds would affect shareholder returns.
Historically, ANTO has been paying out dividends regularly, but as we can see, FY21’s dividend payout is an obvious outlier:
This sudden increase in dividend is likely due to the increase in their cash flow from operating activities due to an increase in copper prices.
It is unlikely that Antofagasta can sustain its high dividend yield in FY22, especially with increasing costs, drought and other woes that its mines are facing. Hence you should proceed with caution.
5) Abrdn (ABDN) – 8.81%
Abrdn is a multinational investment company offering asset management for both corporate and private clients. It has about £464bn assets under management as of Dec 2021.
In FY21, they paid a total of 14.6p per share. However, Abrnd pays out dividends based on their financial performance, hence you shouldn’t expect steady payout as an investor:
In the competitive asset management space, Abrdn (previously known as Aberdeen Asset Management) has taken steps to broaden its reach, especially to the younger investors. One example of this was its 2021 acquisition of finimize, an investing insights platform with over 1 million subscribers to its daily newsletter.
That said, the space remains highly competitive and the question of whether Abrdn can stay ahead in a market of discount brokers and DIY investing, remains uncertain.
6) M&G (MNG) – 8.58%
M&G (short for Municipal & General Securities Company Limited) is a global investment manager headquartered in London. It focuses on saving investment products and has £370bn assets under management in FY21.
If you’re not too familiar with M&G, you may have heard of their brands:
- M&G Investments that does global asset management
- Prudential that does pensions, retirement and insurance products
- M&G Wealth that provides tailored advice serves
- M&G Real Estate
- Infracapital which invests in infrastructure within Europe.
In FY21, it paid out 18.3p per share of dividend, and at the point of writing, it has not officially updated the latest 2022 interim dividend.
Like Abrdn, its dividend payout will likely depend on its performance and hence would not be very sustainable.
7) Phoenix Group (PHNX) – 7.94%
Phoenix Group is an insurance provider based in London. It brands itself as “UK’s largest long term savings and retirement business”, offering pensions and savings products that helps its customers to prepare for retirement.
Its business model requires Phoenix group to generate cash for both its customers over the long term. In line with this, Phoenix Group’s dividend policy is to provide a sustainable dividend that grows over time for its shareholders.
That said, its dividend payout would be dependent on its ability to grow its business hence investors should keep an eye on Phoenix Group’s performance to ensure that it deserves a place in your dividend portfolio over time.
For FY21, Phoenix Group paid out 0.489 GBP per share of dividends:
Historically, PHNX has been paying out dividends rather regularly:
8) Imperial Brands (IMB) – 7.75%
Imperial Brands is a British multinational tobacco company with headquarters in Bristol, England. Its brands include Davidoff, Montecristo, Golden Virginia and many others.
As of 20 April 2022, it has divested its Russian operations and suspended operation in Ukraine. These two markets make up 2% of its net revenue and 0.5% of adjusted operating profit in FY21.
As an industry, the tobacco sector had been impacted by the introduction of “Next Generation Products” like e-cigarettes, heated tobacco products, nicotine pouches, vape and others which are labelled as ‘reduced risk’ or ‘modified risk’ products. In light of this trend, Imperial Brands have put in place a 5 year plan to transform their business. However, the impact of their transformation remains to be seen.
Imperial Brands is a well-loved dividend stock in UK having been growing their dividend payout since 1997, with exception to 2020 and 2021:
As of 26 May 2022, it had announced an interim dividend of 21.27p per share.
It is unlikely for Imperial Brands to increase their dividend payout back to pre-covid levels in FY22. However, they have announced that they’ll be increasing dividends on 30 Sep 2022, so that’s something to look forward to this year.
9) Aviva (AV.) – 7.33%
Aviva is a multinational insurance company headquartered in London, United Kingdom. It is one of the largest general insurer and life & pensions provider in the United Kingdom with about 18M customers across the UK, Ireland and Canada.
As a dividend stock candidate, Aviva had been increasing their dividend payout since 2013, with exception to 2020. For FY21, it paid 14.7p per share of dividend.
As per their updated dividend policy, they estimate about 31.5p per share in FY22 and about 33p per share in FY23. Thereafter, they expect a low-to-mid single digit growth in dividend per share.
10) Anglo American PLC (AAL) – 7.26%
Anglo American is a multinational mining company that operates in many different countries all over the world. They are one of the largest producers of platinum, responsible for about 40% of the world’s output. They also produce diamonds, copper, nickel, iron and steelmaking coal.
In their latest results, they reported a 28% drop in EBITA and 17% drop in revenue as compared to 1H21. However, their share price went up by ~% as the drop in earnings were lesser than analyst expectations. They had also announced an interim dividend of 124 cents (USD) per share.
Like most dividend stocks on this list, AAL had dropped their dividend payout in FY2020 and FY 2021. That said, it remains to be seen if they can increase dividends in FY22 in a tough macro environment of falling commodity price and increasing costs due to inflation.
Conclusion
As can be seen from the list, most of the top 10 FTSE dividend stocks listed have had a difficult year, mostly due to the pandemic. Some like Persimmon and Rio Tinto have seem to recover while mining companies like Antofagasta and Anglo American seem to still be struggling in the current environment.
If you’re looking for the best dividend stocks to build a long-term dividend portfolio, you may want to consider those that have seemingly recovered and do a deeper analysis on their upcoming roadmap or plans to determine if they can keep paying you a healthy dividend.
Of course, if you prefer not to pick individual stocks, here’re the best UK ETFs to consider.