Top-performing dividend stocks are attractive propositions for new investors and experienced campaigners alike, and these five UK listings have the potential to be among the best this year.
Stocks that pay dividends are great for investors because they allow them to add an extra passive income stream to an investment portfolio that isn’t strictly linked to the stock price. In turn, high-yielding dividend-paying stocks are a precious addition to any investment portfolio for the same reason.
The following five companies boast the sought-after combination of paying solid dividends to investors and having a stable outlook for growth and profit throughout 2021.
Games Workshop Group
Games Workshop is a company based in Nottingham that owns the license and makes most of its money from the Warhammer franchise. You name it from books to comics, board games, video games, paintable figurines; these guys make it all.
Even though the company has a relatively low dividend yield of just 1.75%, it has consistently been one of the top-performing stocks on the FTSE 250 for the last five years. That accelerated rapidly in 2020 as more people had more time at home to enjoy Games Workshop products.
It had seen revenues grow from £12.3 million in 2015 to £70-million last year and early indications from 2021 are that it will continue that upward trend for some time yet.
888 Holdings is one of the most prominent companies in the iGaming sector that offers multiple products to its customers, such as bingo, poker, sport, casino and more. If we check this 888 Casino review and many others, we’ll see that the company is the leader in online gaming. This resulted in 888 Holdings seeing a massive 52% increase in revenue from $560.3-million in 2019 to $849.7-million last year.
The excellent news for investors is that the company announced that its strong performance throughout the year dividend per share would increase 400% from 3 to 12 cents per share. If that isn’t enough, the company expects to see more growth in 2021, yet after a very strong start to the year.
GlaxoSmithKline is a multinational pharmaceutical company and one of the top brands within that sector in the UK and worldwide. It is the 10th largest pharmaceutical company on earth by market cap.
By the same metric, it is also the fourth largest company listed on the FTSE 100, which, coupled with a healthy dividend yield of 5.93%, the robust stock in the healthcare sector offers investors an attractive amount of stability.
Despite all the challenges of 2020, the property market in the UK has been surprisingly robust. As one of Britain’s most successful housebuilders, Persimmon has shown significant growth over the past few years.
The house-building company is headquartered in York but has 31 regional offices that have constructed homes in 380 locations worldwide. It also offers a very attractive dividend yield of 7.32%, with a stock price that some analysts believe to be undervalued currently.
BP is a multinational oil and gas conglomerate formerly known as The British Petroleum Company. The company has a reputation for offering a relatively high dividend yield for a business of its size and market cap, sitting at around 6.27% at the start of the year.
The share price has shown consistent growth over the last five years, from 26,77p per share in 2015 to 30.07p per share by the previous year. The company’s long-term CEO Bob Dudley retired in February and was replaced by the ambitious Bernard Looney, who has big plans for the business.