U.K. Top 40 Quality Dividend Stocks: Summer 2024

Welcome to the summer season 2024 version of the UK High 40 High quality Dividend Shares record.

As I am certain you are conscious (until you have been hiding below a rock on the darkish aspect of the moon), the UK is about to carry one other basic election, and though that is necessary to me as a citizen of the UK, it is not all that necessary to me as an investor.

That is as a result of I am a long-term investor, which suggests I anticipate to carry every funding for at the least 5 years, and sometimes for much longer. Over that kind of timeframe, the actions and insurance policies of anybody authorities change into much less necessary, and it turns into extra necessary to spend money on firms that may succeed no matter which get together is in energy at any particular second in time.

And, as Forrest Gump as soon as mentioned, that is all I’ve to say about that.

Turning again to the subject of dividend shares, the excellent news is that the UK stays a gorgeous marketplace for dividend traders, with the FTSE 100 (at 8,100) providing a dividend yield of three.8% and the FTSE 250 (at 20,200) providing a dividend yield of three.4%. Even higher, the typical yield throughout the UK’s prime 40 progressive dividend shares (listed under) is a really wholesome 4.6%.

That is a decrease yield than you will get from a financial savings account (the place yields for fixed-term accounts are nonetheless shut to five%), and that is why lots of people are selecting financial savings accounts after they’re revisiting the age-old dividends vs financial savings query.

However do not forget that firms normally retain a few of their earnings to fund enlargement and progress, so dividends have (on common) grown forward of inflation over the medium and long run, whereas the earnings from a financial savings account is often fastened and unchanging. And with inflation nonetheless considerably elevated, this is a vital issue to contemplate.

Sadly, UK traders have needed to undergo weak or detrimental capital good points lately to get these excessive yields. Alas, that is the inevitable double-edged sword of investing, the place you’ll be able to not often have excessive earnings and excessive progress on the identical time. It is nearly all the time one or the opposite, with the US at present seeing a variety of progress and little or no earnings, whereas the UK is producing numerous earnings with not a lot progress.

It is a case of horses for programs and, as an income-focused investor, I am sticking with the UK.

Final however not least, I also needs to point out that I am engaged on a evaluation of BAE Techniques, which is in 14th place on the highest 40 record and has seen dramatic share worth good points since Russia invaded Ukraine. I am hoping to publish that evaluation in some unspecified time in the future in July and, within the meantime, listed here are the UK’s prime 40 high quality dividend shares.

No. Identify (and hyperlink to evaluation) EPIC Index Sector Share Value Dividend Yield (%) 1 British American Tobacco PLC (BTI) BATS FTSE 100 Tobacco £24.51 9.4 2 Authorized & Normal Group PLC (OTC:LGCOF) LGEN FTSE 100 Life Insurance coverage £2.29 8.9 3 Nationwide Grid PLC (NGG) NG. FTSE 100 Gasoline, Water and Multi-utilities £8.85 6.4 4 Phoenix Group Holdings (OTCPK:PNXGF) PHNX FTSE 100 Life Insurance coverage £5.33 9.9 5 Reckitt Benckiser Group PLC (OTCPK:RBGPF) RKT FTSE 100 Private Care, Drug and Grocery Shops £42.89 4.5 6 Unilever PLC (UL) ULVR FTSE 100 Private Care, Drug and Grocery Shops £43.45 3.4 7 Schroders PLC (OTCPK:SHNWF) SDR FTSE 100 Funding Banking and Brokerage Providers £3.63 5.9 8 Diageo PLC (DEO) DGE FTSE 100 Drinks £24.80 3.2 9 United Utilities Group PLC (OTCPK:UUGRY) UU. FTSE 100 Gasoline, Water and Multi-utilities £9.87 5.0 10 Severn Trent PLC (OTCPK:SVTRF) SVT FTSE 100 Gasoline, Water and Multi-utilities £23.94 4.9 11 IG Group Holdings PLC (OTCPK:IGGHY) IGG FTSE 250 Funding Banking and Brokerage Providers £8.22 5.5 12 Ashmore Group PLC (OTCPK:AJMPF) ASHM FTSE 250 Funding Banking and Brokerage Providers £1.71 9.9 13 Smurfit Kappa Group PLC (OTCPK:SMFTF) SKG FTSE 100 Normal Industrials £35.42 3.6 14 BAE Techniques PLC (OTCPK:BAESY) BA. FTSE 100 Aerospace and Protection £12.72 2.4 15 Rathbone Brothers PLC (OTCPK:RTBBF) RAT FTSE 250 Funding Banking and Brokerage Providers £16.78 5.2 16 Smith & Nephew PLC (SNN) SN. FTSE 100 Medical Tools and Providers £9.76 3.1 17 AstraZeneca PLC (AZN) AZN FTSE 100 Prescribed drugs and Biotechnology £123.04 1.9 18 Liontrust Asset Administration PLC LIO Small Cap Funding Banking and Brokerage Providers £6.83 10.5 19 Polar Capital Holdings PLC (POLA) POLR AIM UK 50 Funding Banking and Brokerage Providers £5.79 7.9 20 Hargreaves Lansdown PLC (OTCPK:HRGLF) HL. FTSE 100 Funding Banking and Brokerage Providers £11.27 3.7 21 DCC PLC (OTCPK:DCCPF) DCC FTSE 100 Industrial Assist Providers £55.75 3.5 22 IMPAX Asset Administration Group PLC (OTCPK:IPXAF) IPX AIM UK 50 Funding Banking and Brokerage Providers £3.84 7.2 23 RWS Holdings PLC (OTCPK:RWSPF) RWS AIM UK 50 Industrial Assist Providers £1.86 6.6 24 MONY Group PLC (OTC:MYSRF) MONY FTSE 250 Software program and Laptop Providers £2.23 5.4 25 Chesnara PLC CSN Small Cap Life Insurance coverage £2.47 9.7 26 Telecom plus PLC TEP FTSE 250 Telecommunications Service Suppliers £17.64 4.7 27 Bunzl PLC (OTCPK:BZLFF) BNZL FTSE 100 Normal Industrials £29.92 2.3 28 RELX PLC (RELX) REL FTSE 100 Media £35.77 1.6 29 Pets at Residence Group PLC (OTCPK:PAHGF) PETS FTSE 250 Retailers £2.99 4.3 30 Intertek Group PLC (OTCPK:IKTSF) ITRK FTSE 100 Industrial Assist Providers £47.34 2.4 31 RS Group PLC (OTCPK:EENEF) RS1 FTSE 250 Industrial Assist Providers £6.87 3.2 32 Croda Worldwide PLC (OTCPK:COIHF) CRDA FTSE 100 Chemical compounds £38.99 2.8 33 Hikma Prescribed drugs PLC (HKMPF) HIK FTSE 100 Prescribed drugs and Biotechnology £18.67 3.0 34 M.P. Evans Group PLC MPE AIM UK 50 Meals Producers £8.60 5.2 35 Ocean Wilson Holdings PLC OCN Small Cap Industrial Transportation £12.90 5.2 36 Sage Group (The) PLC (OTCPK:SGGEF) SGE FTSE 100 Software program and Laptop Providers £10.74 1.8 37 James Halstead PLC JHD AIM UK 50 Building and Supplies £1.80 4.4 38 London Inventory Change Group PLC (OTCPK:LDNXF) LSEG FTSE 100 Funding Banking and Brokerage Providers £93.04 1.2 39 Metropolis of London Funding Group PLC (OTCPK:CLIUF) CLIG Small Cap Funding Banking and Brokerage Providers £3.70 8.9 40 Spirax Group PLC (OTCPK:SPXSF) SPX FTSE 100 Industrial Engineering £84.50 1.9 Click on to enlarge

Notes:

The information for this record is kindly offered by SharePad For those who’re studying this sooner or later, you’ll be able to obtain the most recent model of the record in PDF format right here: UK High 40 High quality Dividend Shares This record is a place to begin for additional evaluation and isn’t a suggestion to purchase or promote any particular inventory

This is a abstract of the kind and choose guidelines used to construct the record:

Choose shares that:

Are constituents of the FTSE 100, FTSE 250, FTSE Small-Cap, FTSE Fledgling or AIM UK 50 indices Paid a dividend yearly for the final ten years Held or raised their dividend in each one of many final ten years

Kind these shares by:

Dimension: Assign every inventory a dimension rank, with the very best market cap having a dimension rank of 1 Yield: Assign every inventory a yield rank, with the very best yield having a yield rank of 1 Dimension and Yield: Sum the scale and yield rank for every inventory; kind the record by the mixed rank in ascending order so the inventory with the perfect mixture of huge dimension and excessive dividend yield is on the prime of the record High 40: Take away shares outdoors the highest 40

Unique Publish

Editor’s Be aware: The abstract bullets for this text had been chosen by Looking for Alpha editors.