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FTSE 100 still offers high yields despite forecast 24% dividend decline

Total FTSE 100 dividends are on course to fall to their lowest level since 2012 this year compared to last year but there are still very attractive yields available among Londons blue chips, according to new research.

Londons blue chips will cut dividends by £18bn or 24% in 2020 compared to last year, according to cuts that have been announced and analysts forecast compiled by AJ Bell.

Although 35 Footsie constituents having cancelled, cut or are withholding their shareholder payouts, just four firms represent bulk of the £18bn cut: Royal Dutch Shell PLC (LON:RDSB), BP PLC (LON:BP.), HSBC Holdings PLC (LON:HSBA) and Glencore PLC (LON:GLEN).

British American Tobacco PLC (LON:BATS) is now the biggest dividend payer on the FTSE 100, with an expected near-£5bn dividend that means its shares yield around 8%.

The highest forecast yields on the FTSE are offered by M&G PLC (LON:MNG) at 12.5% and Imperial Brands PLC (LON:IMB) and Aviva PLC (LON:AV.), both around 10%.

Other high yielders include Standard Life Aberdeen PLC (LON:STA) and Legal & General Group PLC (LON:LGEN), both at just under 10%.

Just between BPs 8.5% and BATs 8%, theres Vodafone PLC (LON:VOD) at 8.1%.

Filling out the top ten blue chip dividend yields, Evraz PLC (LON:EVR) is forecast to pay 7.3%, while Phoenix Group PLC (LON:PHNX) is at 7%.

These highest yielding stocks might not be everyones taste, said AJ Bell investment director Russ Mould, pointing to those who feel that tobacco does not pass their socially responsible investing (SRI) tests.

“However, others will welcome how BATs cRead More – Source




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