Stock prices may be depressed, economic prospects challenged, and the Brexit issue held up as a constant cold, but the city remains a good investment story. A step towards the company's dividend, shareholders receiving income compensation are being paid by companies listed on the stock exchange to invest their hard-earned money with them. Hard rock.
Last year, British companies paid investors 99.8 billion pounds, record highs and more than five percent higher than in 2017. Even more reassuring, despite all the corporate, economic and financial uncertainties on the horizon, data collectors dividends, a company called Link Market Services, believe that profits are far from being completed.
This year, they predict that dividends will grow by more than four percent to £ 104 billion, which will provide investors with an average dividend yield in the region of 4.8 percent. Income levels far out of anything that can be earned from cash savings, government pigs and property – though not without risk.
Last year, British companies paid investors 99.8 billion pounds, which is record high and more than five percent higher than in 2017.
While Linck believes that average yields – and dividends in general – may be under pressure if the world economy is at some point in recession, the prospect of most income-oriented shareholders prepared to keep their investments long-term remains positive.
On this favorable background, Wealth asked three leading equity experts to select the FTSE 100 shares, which they believe will lead to revenue growth this year – no matter what the economy's thresholds and arrows – and have stable enough ventures, to escape from any stock market blips.
Although the yields of some of these shares may appear to be lower than those available from other companies, the key is the likelihood of future dividend growth. As Light Khalaph, a senior analyst at Hargreaves Lansdown, says: "Attracting a company that is constantly increasing its dividend is that it will ultimately outperform the income of a higher-yielding, but flat-rate or under threat be cut.
Haloff is one of the Wealth dividends, along with Russ Mold, investment director at AJ Bell, and Richard Hunter, market leader at Interactive Investor.
Seven Steps To Follow
1. You can easily build a portfolio of income-friendly shares through an online account or fund platform run by AJ Bell, Halifax, Hargreaves Lansdown and Interactive Investor-like funds.
2. Each purchase of shares will have a distribution fee plus a 0.5% fee.
3. All online platforms now allow you to collect key income information for any stock you would like to buy – such as dividend records, when divisions are paid, and how often (typically twice a year).
4. Keep in mind that if you buy shares' dividend, you will not only receive the declared dividend payout.
5. If you are in Isa or a pension, the dividend income is exempt from tax. If income-adjusted shares are held as part of an investment portfolio, the first 2,000 GBP of annual dividends are exempt from tax. Any amount above this amount is taxed according to whether you are a basic (7.5%), higher (32.5%) or additional (38.1%) taxpayer.
6. While some investors will want to receive dividend income because they are paid, others may choose to automatically reinvest, buying even more shares. A fee may apply.
7. Investors who are not willing to buy individual shares may purchase investment funds or investment funds whose shares are invested in a dividend.
Share price: £ 27.16.
Dividend yield: 2.40%.
End of financial year: June 30.
Profits: £ 3.74 billion (Year to June 30, 2018).
Paid Annual Dividends per Share: 65.3p (2018), 62.2p (2017), 59.2p (2016), 56.4p (2015), and 51.7p (2014).
Annual dividend growth: 5.0%, 5.1%, 5.0%, 9.1% and 9.1%.
Dividend Date (Shares purchased after this date do not entitle buyers to Wilds already advertised): February 28.
What is Diageo doing? This is a beverage giant with world-renowned brands including Bailey's, Captain Morgan, Guinness, Johnnie Walker and Smirnoff.
Expert opinion on the dividend: Khalaf says: "Diageo's business is relatively well isolated from major demand changes because a soothing drink or two is not likely to go out of fashion even if the economy turns to worse.
Although Brexit's order, followed by rising sterling, may worsen its profits – it generates a lot of profits abroad – the company has grown dividends for nearly two decades. There is no reason to be disturbed.
Mold added: reliable The most reliable dividend growth companies tend to have a price force that leads to healthy profit margins and a good cash flow. Diageo is a great example of this. Although the company has an interest rate on its outstanding debts of £ 503 million, it diminishes in negligence compared to the annual profit of £ 3.74 billion.
Ends Dividends cover about 1.8 times the annual earnings, so dividends are protected. As a general rule, any cover over 1.5 times is considered acceptable, all under 1 is a warning flag as it indicates that a company pays dividends from its reserves, which is not sustainable.
Analysts expect the dividend to grow at 5.8% this year.
Share price: £ 15.87.
Dividend yield: 2.38%.
End of financial year: September 30.
Profits: £ 1.52 billion (Year to September 30, 2018).
Paid Annual Dividends per Share: 37.7p (2018), 33.5p plus 61p dedicated dividend (2017), 31.7p (2016), 29.4p (2015), and 26.5p (2014).
Annual dividend growth (excluding special divide): 12.5%, 5.7%, 7.8%, 10.9% and 10.4%.
Date of dividend: June 20th
What is Compass doing? She is the world's leading provider of food service contracts in schools, hospitals and jobs. It's everywhere.
Expert opinion on the dividend: Calaf says, "Compass is closely following its spending, and dividends and profits have increased by more than 160% since 2007.
Analysts expect double-digit dividend growth this year.
DEVELOPMENT OF BARRAT
Share price: £ 5.36.
Dividend yield: 4.94%.
End of financial year: June 30.
Profits: 835 million pounds (year to 30 June 2018).
Paid Annual Dividends per Share: 43.8p (2018, including 17.3p dedicated dividend), 41.7p (2017, 17.3p), 30.7p (2016, 12.4p), 25.1p (2015, 10p), 10.3p
Annual dividend growth (excluding special divide): 8.6%, 33.3%, 21.2%, 46.6% and 312%.
Date of dividend: April 25.
What does Barratt Developments do? It is the largest builder in the country.
Expert opinion on the dividend: Hunter says, "This company is my favorite participation in the housing industry. It has a good dividend coverage with enough annual earnings to pay dividends two and a half times. It has had five annual annual dividend increases and, although future increases are not guaranteed, the company seems to have a bearing on the growing dividend. "
Share price: £ 14.06
Dividend yield: 1.04%.
End of financial year: March 31.
Profits: 172 million pounds (year to March 31, 2018).
Dividends paid so far this financial year: 6.11p (intermediate), compared with 5.71p (last year).
Paid Annual Dividends per Share: 14.68p (2018), 13.71n (2017), 12.81n (2016), 11.96p (2015).
Annual dividend growth: 7.1%, 7.0%, 7.1% and 7.1%.
Date of dividend: July (no exact date specified).
What does Halma do? This company manufactures systems for detecting danger and protecting life. Everything – from fire detectors and smoke detectors to instruments used by optometrists for eye examination and disease detection.
Expert opinion on the dividend: Mold says: nature The obligatory nature of much of his business creates consistent business streams and missing customers, a combination that gives Halma a certain degree of price force. Since 1980, he has increased his annual dividend by at least five per cent a year. With low debt levels and dividends covered more than three times over annual profits, there is a chance that its dividend growth will continue.
Analysts expect dividend growth of 7.7%.
Share price: £ 47.97.
Dividend yield: 1.69%.
End of financial year: December 31st.
Profits: £ 314 million (year to 31 December 2017).
Dividends paid so far this year: 38p (Intermediate), compared to 35p (Intermediate last year).
Paid Annual Dividends per Share: 81p (2017), 74p (2016), 69p (2015), 65.5p (2014), and 64.5p (2013).
Annual dividend growth: 9.5%, 7.3%, 5.3%, 1.55% and 8.4%.
Date of dividend: May 2
What is Croda doing? It produces specialized chemicals for cosmetic products such as moisturizers, as well as lubricant ingredients and crop care products that help farmers achieve better yields.
Expert opinion on dividends: Mold says: goes Croda's Dividend Growth dates back to 1999 and has low debt levels. Dividends are at least twice covered by annual profits, so they are able to add to the already impressive growth of dividends.
Share price: £ 23.43.
Dividend yield: 1.96%.
End of financial year: December 31st.
Profits: £ 409 million (year to 31 December 2017).
Dividends paid so far this year: 15.2p (intermediate), compared to 14p (last year).
Paid Annual Dividends per Share: 46p (2017), 42p (2016), 38p (2015), 35.5p (2014), and 32.4p (2013).
Annual dividend growth: 9.5%, 10.5%, 7.0%, 9.6% and 14.9%.
Date of dividend: May 23.
What does Bunzl do? As with many consecutive dividend producers, Bunzl's secret of success is that it provides goods with a small ticket without which customers can not cope if they want to do their daily business properly. He delivers disposable coffee cups, rubber gloves for cleaning companies, and hospital syringes.
Expert opinion on the dividend: Mold says: "This makes a good sales margin and business growth has been boosted by additional acquisitions – such as the purchase of US diversified distribution systems in 2017. Both interest payments on their debt and dividend payments to shareholders are adequately covered. of profits.
Analysts expect dividend growth this year to be 6.9%.
TOP BANK ACCOUNTS FOR SMALL BUSINESS START – UPS
Do not forget about foreign companies
Investors looking for dividend income should not forget to look abroad.
According to a study carried out by investment bank Janus Henderson, international dividends paid by companies outside the UK increased by 119% between 2009 and the end of 2018, with Japan (158%), the rest of Asia (164% ) and North America. (153%). In all, the first 1200 global companies paid dividends from £ 889 billion in the year to the end of October 2018 – £ 816 billion of which were generated by companies listed on the stock exchange outside the UK.
Ben Lofthhouse is a manager of Henderson International Income, an investment fund that only invests in companies that are profitable for revenue outside the UK. During the year to September last year, he increased his dividend by 8%. He says, "There are benefits to including international dividends as part of the income portfolio. These include access to various industrial sectors and the diversification of regulatory and political risks. "He adds that a number of leading technology and financial companies are now returning money to shareholders through dividends. Some global investment trusts have data on dividend growth of 30 years. These include Alliance, Bankers, Foreign and Colonial, Scottish, and Vital.