The payout ratio is one important factor to consider in addition to the yield when selecting dividend stocks. Higher payout ratios indicate management’s willingness to distribute more of the profits as dividends to shareholders.
The following 6 British ADRs pay more than 5% dividends and their payout ratio is more than 50%:
1.Company: BP Plc (BP)
Dividend Yield: 6.93%
Payout Ratio: 52%
2.Company: British American Tobacco (BTI)
Dividend Yield: 5.03%
Payout Ratio: 72%
3.Company: GlaxoSmithKline plc (GSK)
Dividend Yield: 5.61%
Payout Ratio: 54%
4.Company: National Grid Plc (NGG)
Dividend Yield: 6.18%
Payout Ratio: 73%
5.Company: Unilever Plc (UL)
Dividend Yield: 5.50%
Payout Ratio: 65%
6.Company: Vodafone Group Plc (VOD)
Dividend Yield: 6.20%
Payout Ratio: 71%
Note: Information posted above is known to be accurate. Please do your own reasearch before making any investment decisions.
Another advantage with the companies noted above is that they all have large exposure to emerging markets. For investors who would rather capture the emerging markets growth by investing in developed market firms, these stocks excellent choices.For example, British American Tobacco (BTI) has 63% exposure to emerging markets where the demand for its products are growing exponentially.
