These 10 Companies Pay Half of all UK Dividends

The British equity market is an excellent hunting ground for yield-seeking investors. British firms have a strong dividend culture and have high dividend yields on their equities. For American investors, an added advantage is that there is no withholding taxes on dividends (excluding REITs).

Despite the pros, the British stock market has a structural issue according to a study Henderson Global Investors. From an article quoting the study:

The top ten companies pay half of all UK dividends, with the top 20 companies paying 70% of all UK dividends.

Source: Seven out of 10 UK equity income funds hold these 10 companies, MoneyWise, April 21, 2017

Hence investors seeking to gain exposure to British income stocks may want to consider adding the top ten companies. These stocks are listed below their current dividend yield on the US market:

1.Company: AstraZeneca PLC (AZN)
Current Dividend Yield: 4.70%
Sector: Pharmaceuticals

2.Company: Vodafone Group PLC (VOD)
Current Dividend Yield: 5.93%
Sector: Wireless Telecom

3.Company: British American Tobacco PLC (BTI)
Current Dividend Yield: 3.21%

4.Company: GlaxoSmithKline (GSK)
Current Dividend Yield: 4.92%
Sector: Drugs

5.Company: HSBC Holdings PLC (HBSC)
Current Dividend Yield: 6.38%
Sector: Banking

6.Company: BP PLC (BP)
Current Dividend Yield: 7.06%
Country: UK

7.Company: Royal Dutch Shell PLC (RDS.A)
Current Dividend Yield: 7.31%
Sector: Oil, Gas & Consumable Fuels

8.Company: Legal & General PLC (LGGNY)
Current Dividend Yield: 9.80%
Sector: Insurance

9.Company: Aviva PLC

10.Company: Imperial Brands PLC (IMBBY)
Current Dividend Yield: 4.02%

Note: Dividend yields noted above are as of April 24, 2017. Data is known to be accurate from sources used.Please use your own due diligence before making any investment decisions.

Disclosure: No Positions


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