Britain’s largest companies are international players. The 100 stocks in the FTSE 100 operate on a global basis, drawing 70% of their revenues from outside of the UK. For many investors too wary to invest directly in emerging markets, buying FTSE 100 listed stocks can offer access to the emerging markets growth story, but with the comfort of a level of corporate governance and transparent shareholder dealings that are upheld in developed markets.
Income continues to be the main concern for investors in the UK – both in the run up to retirement, where dividends reinvested can significantly boost total returns, and for those that have already started drawing on their pension dividends can help supplement their post-retirement income.
FTSE 100 stocks may not offer the same potential for growth as their smaller counterparts, but broadly speaking the dividends paid by these megacaps are more secure than those paid by small and medium sized companies.
Using Morningstar Direct we screened for the top 20 dividend-paying stocks in the FTSE 100. Please be aware this is a 12-month historic yield, and so is no indication of future pay-outs. New entries to the list are marked with an asterisk, there are three this update.
EVRAZ (EVR)*
Yield: 13.43%
Industry: Steel
Persimmon (PSN)
Yield: 9.62%
Industry: Residential Construction
Centrica (CNA)
Yield: 8.29%
Industry: Utilities
Vodafone Group (VOD)
Yield: 7.55%
Industry: Telecom Services
SSE (SSE)
Yield: 7.5%
Industry: Utilities
BT Group (BT.A)
Yield: 6.81%
Industry: Telecom Services
Standard Life Aberdeen (SLA)
Yield: 6.79%
Industry: Insurance – Life
Marks & Spencer (MKS)
Yield: 6.2%
Industry: Department Store
Legal & General Group (LGEN)
Yield: 6.16%
Industry: Insurance – Life
Rio Tinto (RIO)
Yield: 6.09%
Industry: Industrial Metals & Mining
Imperial Brands (IMB)
Yield: 5.8%
Industry: Tobacco
Aviva (AV.)
Yield: 5.8%
Industry: Insurance
Royal Dutch Shell (RDSB)
Yield: 5.6%
Industry: Oil & Gas Integrated
Micro Focus International (MCRO)*
Yield: 5.54%
Industry: Software – Application
National Grid (NG.)
Yield: 5.53%
Industry: Utilities
BP (BP.)
Yield: 5.44%
Industry: Oil & Gas Integrated
United Utilities (UU.)
Yield: 5.53%
Industry: Utilities – Regulated Water
Lloyds Banking Group (LLOY)*
Yield: 5.17%
Industry: Banks – Regional – Europe
Royal Mail (RMG)
Yield: 5.17%
Industry: Integrated Shipping
The original version of this article was published in September 2013. The data has changed significantly since then and has been updated accordingly, most recently on August 21, 2018.
The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person’s sole basis for making an investment decision. Please contact your financial professional before making an investment decision.