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.

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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.


Security NamePriceChange (%)Morningstar
Bunzl PLC2,654.00 GBX0.68Rating
ConvaTec Group PLC229.70 GBX1.91Rating
Diageo PLC3,553.00 GBX1.69Rating
EVRAZ PLC585.60 GBX-0.81
Experian PLC3,240.00 GBX1.12Rating
Ferguson PLC10,565.00 GBX0.57Rating
GlaxoSmithKline PLC1,471.40 GBX0.64Rating
Intertek Group PLC5,362.00 GBX1.75Rating
Johnson Matthey PLC2,911.00 GBX-0.95Rating
London Stock Exchange Group PLC8,062.00 GBX1.33Rating
Pearson PLC769.20 GBX0.21Rating
Reckitt Benckiser Group PLC5,585.00 GBX0.83Rating
RELX PLC2,195.00 GBX0.60Rating
Schroders PLC3,782.00 GBX0.05Rating
Smith & Nephew PLC1,413.50 GBX1.33Rating
Unilever PLC4,044.00 GBX-0.05Rating

James Gard  is content editor for Morningstar.co.uk


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