UPDATED August 2021: Investors have been richly rewarded by UK companies in recent weeks with raised and reinstated dividends
Latest results from the UK’s biggest dividend payers have been overwhelming positive, with companies like Barclays, Natwest and HSBC restarting payouts and BP and Legal & General increasing theirs.
Investors have been eagerly awaiting the resumption of UK bank dividends after a hiatus last year when regulators stepped in to halt payouts during the pandemic. So Lloyds Banking Group (LLOY) and HSBC (HSBA) have returned to our elite list of UK income stocks with an economic moat and solid dividend cover. Both are rated as 4-star stocks by Morningstar analysts, which means the shares are undervalued, despite decent gains this year. Indeed, Lloyds is one of the best performers on the list with a gain of 31% this year – although this has to be put in the context of a 41% fall in 2020 amid the coronavirus sell-off. Shares have yet to revisit 2019 levels.
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 persons sole basis for making an investment decision. Please contact your financial professional before making an investment decision.
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|Security Name||Price||Change (%)||Morningstar |
|Bunzl PLC||2,654.00 GBX||0.68|
|ConvaTec Group PLC||229.70 GBX||1.91|
|Diageo PLC||3,553.00 GBX||1.69|
|EVRAZ PLC||585.60 GBX||-0.81|
|Experian PLC||3,240.00 GBX||1.12|
|Ferguson PLC||10,565.00 GBX||0.57|
|GlaxoSmithKline PLC||1,471.40 GBX||0.64|
|Intertek Group PLC||5,362.00 GBX||1.75|
|Johnson Matthey PLC||2,911.00 GBX||-0.95|
|London Stock Exchange Group PLC||8,062.00 GBX||1.33|
|Pearson PLC||769.20 GBX||0.21|
|Reckitt Benckiser Group PLC||5,585.00 GBX||0.83|
|RELX PLC||2,195.00 GBX||0.60|
|Schroders PLC||3,782.00 GBX||0.05|
|Smith & Nephew PLC||1,413.50 GBX||1.33|
|Unilever PLC||4,044.00 GBX||-0.05|
James Gard is content editor for Morningstar.co.uk
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