7 Top FTSE Dividend Stocks 2020 for European Traders: FTSE, i.e. Financial Times Stock Exchange, is a UK index for the top companies. It was started back in 1984 with a base price level of 1000. The FTSE 100 contains the top hundred firms of UK exchange. Investors in the UK keep looking for income shares in the exchange, i.e. the stocks with best dividend yield. However, not every high dividend company is worth your investment. It often happens that many organisations in the exchange post many traps, like high dividend, to eat up stakeholders’ funds.
The simple formula to finding good dividend shares is including companies with strong fundamentals, clean records, high dividend pay-out history, and suitable entry & exit points. And, if you don’t want to do this much hard work, then here are seven best FTSE dividend shares 2020. Check the list and make sure to read the conclusion.
10 Best FTSE Dividend Stocks Shares UK 2020 For Beginner Traders
Evraz is owned by Roman Abramovich, the famous premier league soccer club Chelsea FC’s owner. The firm is situated in the UK, and its operations include mining and steel manufacturing. The company’s stock yields an annual dividend of 14.69% and is highest in FTSE 100 companies. Although the company has started announcing its dividend since 2017 only after that it has not looked back, paying it off twice a year.
The financial stats of the firm includes a PE ratio of 4.66, the stock price of 395.10p, the market capitalisation of 5.73B Euros, total liabilities of 7.7B (which is decreasing continuously), and an average volume of 458,767.
The Evraz dividend history is as follow:
2016 – 0.0c
2017 – 60.0c
2018 – 118.00c
2019 – 75c
HSBC is a global investment bank, headquartered in Britain, and positioned itself as the 21st biggest public firm in the world by Forbes 2019. The bank was founded nearly 150 years ago in 1865 and is the largest in Europe and seventh-largest in the world, in banks. The company has a robust customer base of 38M over the globe with 3,900 offices in more than 65 nations.
The financial stats of this one of the largest investment banks include a PE ratio of 11.91, a massive market cap of 120B euros, a high volume of 9.734M, and a share price of 596.10p. Moreover, the firm is also the second biggest in FTSE by market cap and also ranks the second most liquid share in our list. HSBC’s provides a 6.63% dividend rate, which seems to be increasing with each passing year.
The HSBC dividend history is as follows:
2015 – 34.15p
2016 – 40.11p
2017 – 37.96p
2018 – 39.04p
2019 – 39.96p
3. Imperial Brands
Began in 1901, Imperial Brands or IMB is the fourth biggest tobacco firm in terms of market capitalisation in the world. The company owns many brands like JPS, Rizla, and Golden Virginia.
The financial stats of the firm contain a market cap of more than 18.82B euros, share price of 1989.80p, an average volume of 294,205, and an 18.82 PE ratio. Moreover, the company lists on 31st position on UK’s index, FTSE100, and has a relatively good record of continuously increasing dividend with each passing year since 2012, managing a yield of 10.54% dividend.
If the company manages to stay on its growth dividend track, then it can be an excellent choice for all the investors.
Persimmon has an interesting story behind its name. The name “Persimmon” was a horse’s name, owned by England’s Prince of Wales, which won the St. Leger Stakes in 1896 and he inspires the company’s name. The company was started in 1972 in York, England, and is a house building organisation, covering a considerable area from South of England to Scotland.
The company is showing no symptoms of slowing down and is a very significant opportunity for income investors if the UK housing sector kept growing. Over the last five years, the organisation’s profit and revenue have gone drastically up and provides a high yield dividend of 8.68% to the shareholders.
The stats of the company are as follows: Market capitalisation: 8.92B Euros, P/E ratio: 10.20, share price: 2829p, and an average volume of 765,001
The IMB dividend history is as follows:
2015 – 141p
2016 – 155.20p
2017 – 170.72p
2018 – 187.79p
2019 – 206.57p
5. BT Group
BT or British Telecom group is a global telecommunication firm that operates in more than 180 nations and is the biggest service provider of broadband in the UK. British Telecom group is a member of the FTSE index for a very long time and currently stands at 30th position, showing no signs of slowing growth.
The company’s dividend history is as follows:
2015 – 110p
2016 – 135p
2017 – 110p
2018 – 110p
2019 – 110p
The company’s share is known as an income stock and currently pays a high dividend yield of 8%. The company is paying with the same rate for the last four years, twice a year. The average volume of the firm is more than 3.5M, and the market cap is around 18.34B euros. The share price is 184p, and the PE ratio is 8.47. The company is paying a dividend since 1998.
British Petroleum, or popularly known as BP, is an international gas and oil firm that started back in 1909. The company is the sixth most prominent energy firm in the globe by market cap. The company’s high dividend yield is an attractive gist for investors. However, notably, the company’s last CEO, Bob Dudley, retired in February 2020 and now Bernard Looney has taken the helm on his hands. Bernard is believed to have ambitions about expanding the company’s climate targets. As a consequence, it might encounter some of the most significant changes in the company’s long 111-year history.
The oil company is the third most prominent firm in the FTSE index and offers a high dividend yield of 6.35% to shareholders as compared to other similar counterparts. Financially, the company’s average volume is 22,678,947, and the share price of the company is 496.65p. The market cap is an impressive 101B euro, and a P/E ratio of 27.64 would aid the investors to expect growth in coming time.
The dividend history of BP:
2015 – 26.77p
2016 – 30.56p
2017 – 29.84p
2018 – 31.24p
2019 – 31.94p
7. Standard Life Aberdeen
SLA or Standard Life Aberdeen is an investment firm in Edinburg, Scotland and is a result of a merger between Standard Life and Aberdeen Asset Management in 2017. The company is the largest asset manager in the UK and manages global assets, including private markets, real estate, and equities.
Standard Life Aberdeen dividend rate has continuously been rising for the last 12-13 years and offers a yield of around 6.93%. Although the company’s net worth is increasing the investment in it is still considered a bit risky as the firm is operating at a loss.
The financial stats of the firm contains a market cap of more than 7.3B euros, a P/E ratio of 6.5, an average volume of 6.5M+ and a share price of 310p, approx. The company’s dividend history:
2015 – 18.36p
2016 – 19.82p
2017 – 21.30p
2018 – 21.60p
2019 – 21.60p
The Bottom Line – FTSE Dividend Stocks
FTSE Dividend stocks can be excellent income generators, and thus, many income headed persons keep them in their holdings. Apart from being a good income creator, these shares also aid the traders in serving a balanced portfolio. The more diverse your shareholdings are, the less risky your portfolio would become. Note that apart from checking the fundamentals of the company, it is also rational to analyse and examine other counterparts.
Moreover, the broker also plays a significant role here. Thus, choosing a good, trustworthy brokerage firm is crucial. Check the list of our top trading website’s picks here, segregated according to categories, and read their unbiased review for FREE.