Sunday, 10 May 2015

Best Dividend Paying Stock List

Many investors will be interested in the best dividend paying stock list. I am one of these because I prefer stocks that pay dividends or income as opposed to those that rely on capital growth. Personally I feel more comfortable with such investments because at least I get something back from my investment rather than having to be patient and wait for the company to grow. I can then decide whether I want to invest my dividends back into the stock or withdraw them to my bank account.

Since I am based in the UK I will be looking for the best dividend paying stock list within the FTSE 100 market. I will be hoping to acquire a few of these stocks myself in the not too near future. I have used various websites for my research and below you can find my results.

The best dividend paying stock list starts with Morrison supermarkets at number one. This company is set to pay as much as 13.65 pence per share. The yield for Morrison supermarkets is 7.54% right now. This does sound extremely appealing but I am sure investors will be cautious after what happened at Tesco. I previously discussed the dividends at Tesco and how they were heading in the wrong direction. Could the same thing happen with Morrisons?

There are a number of best paying dividend stocks with yields of between 5 and 6%. This is much higher than any bank account or cash ISA right now and this is what makes them favourable. I want my money to go further and help me increase my net worth. Investing it in a Cash ISA with 1.5% interest is not the best option right now. Royal Dutch Shell pays 121.77 pence per dividend giving it a yield of 5.88%. This particular oil stock is more competitively priced than it was 8 months ago due to the fall in oil prices. Oil prices are not starting to rise and so are share prices of these companies. I would love to buy some of these but the only thing stopping me is the huge price per share of just under £21. I only have small amounts to invest right now but I guess I could afford 25- 30 of these. BP is another option for me. It too has a decent dividend yield of 5.77% and is priced at under £5 per share.

Other companies near the top of the best dividend paying stock list include GlaxoSmithKline, a company I am very interested in, as well as HSBC Holdings and Scottish and Southern Energy. These three stocks also have yields above 5%.

There are numerous other sticks with top yields of over 4% but I felt that my cutoff should be 5%. In saying that Royal Mail have a yield of just over 4% and National Grid have a yield of 4.66% and I have invested in these two companies.

The stocks I have mentioned here appear to be the best paying dividend stocks in the UK right now. Of course this can change at any time but it is the here and now I am interested in.

Were you lucky enough to buy one of the best paying dividend stocks in 2014? The only stock I held last year was Royal Mail and I am pleased with the dividends and growth from the initial IPO price. I have only bought one new stock this year so far, National Grid but I hope to add to my portfolio sometime soon.

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