With US stock markets booming, you might want to protect your portfolio in June by buying high dividend UK stocks. Here are some of the best dividend paying stocks we have to offer you.
Where can I buy dividend stocks in June 2021?
To buy high dividend stocks this month, you can use the services of eToro and Capital, two of the best stock brokers in the business.
eToro is a registered and regulated broker that offers its services to traders in many countries. The broker does not charge a commission on the purchase of physical stocks. So you can reduce your costs when buying dividend stocks using eToro. You can use eToro’s social trading feature to interact with other traders and learn from their experiences. The copy trading feature allows traders to automatically copy trades from advanced and successful investors, making it easier to set up different strategies for less experienced traders. You can quickly open your account with eToro and begin your journey into the world of investing.
Capital.com is a regulated broker that offers many useful services for traders, including an artificial intelligence powered trading platform with over 70 technical indicators, high leverage, and trading courses for beginners. The broker does not take a commission on the opening and closing of trades with tight spreads, which allows you to buy the best dividend-paying stocks at no additional cost. You can start trading quickly by opening your trading account with Capital.com through a simple process.
Which dividend-paying stocks to buy in June 2021?
From the myriad of stocks available, we have selected high dividend stocks that will increase your portfolio returns, give you additional cash that you can reinvest or withdraw, and bring stability to your portfolio.
1. BHP Group (LSE: BHPB)
BHP Group, an FTSE 100 company, operates in the metals and mining industry. Its dividend yield is 5.10% as the company paid a total dividend of $ 1.20 (£ 0.9173) per share in fiscal year 2019/2020. The company has already paid an interim dividend of $ 1.01 (£ 0.7298) per share in fiscal year 2020/2021 and has yet to announce a final dividend, which – when decided – will exceed the dividend paid. during the 2019/2020 financial year. The company has recorded strong annual compound dividend growth over the past 5 years, making it an ideal candidate for investors looking to take advantage of companies that distribute large dividends.
2. British American Tobacco (LSE: BATS)
British American Tobacco manufactures and markets cigarettes and tobacco related products. In fiscal year 2019/2020, the company paid dividends of 210.4 pence (p) per share with a dividend yield of 8%. Although the stock has traded in a January to May range and is currently at a January level of 2,723 pence (p), a strong 8% dividend yield coupled with an annual growth rate Composed of the 4.04% dividend over 5 years makes it a suitable dividend stock for investors looking for value stocks.
3. Legal & General (LSE: LGEN)
Legal & General is a well-known UK company providing financial and asset management services to its clients. The action is popular and pays an attractive dividend. It’s a passive income stock and here are some dividend metrics:
Dividend per share: £ 0.1757
Dividend yield: 6.60%
Annual growth compounded by dividend over 5 years: 5.57%
4. United Utilities (LSE: UU)
United Utilities, the UK’s largest water utility, is also used to paying stable and regular dividends. In 2020, the company paid 42.60 pence (p) per share, registering a growth rate of 3.2% from the previous year. UU stock has a dividend yield of 4.70% and compound annual dividend growth over 5 years of 2.38%.
5. Persimmon (LSE: PSN)
UK house builder Persimmon returned around 15% in the first 5 months, with the stock climbing from £ 2,720 to £ 3,160. In the year 2020, the company paid a cumulative dividend of 235 pence (p), which translates into a dividend yield of 4%. The dividend yield of the company over the last 12 months is 7.28%. Although the company did not pay dividends in 2019, it has historically paid dividends regularly. The annual compound dividend growth rate over 5 years is 50.81%.
6. Phoenix Group Holdings (LSE: PHNX)
Phoenix Group Holdings, the UK’s largest insurance services provider, gained around 5% in the first 5 months of the year. The company has paid regular dividends to its shareholders, making the stock a possible candidate for investors looking for high dividend stocks. Here are the main measures of the company’s dividend:
Dividend per share: 47.50 pence (p)
Dividend yield: 6.80%
Dividend growth over 1 year: 1.50%
Annual growth compounded by dividend over 5 years: 3.23%
7. British Petroleum (LSE: BP)
Formerly (and officially) known as British Petroleum, BP generated a stellar 20% return in the first 5 months of the year, with its price jumping from £ 254 to £ 306 during that time. While providing opportunities for capital appreciation, this stock also provides regular dividends to shareholders.
In 2020, it posted a return of 7.3% and paid a dividend of $ 0.26 per share. This dividend of $ 0.26 is a reduction from the $ 0.41 paid the previous year, due to the negative effects of the coronavirus pandemic. However, with the pandemic now hopefully under control and the rising price of oil, we may see a resumption of dividends ahead. However, the dividend growth rate over one year is -36.36% and the compound annual dividend growth rate over 5 years is -12.09%.
Why buy dividend stocks in June 2021?
Dividend stocks are stocks that distribute part of their profits to investors in the form of dividends. They are ideal for investors who want to hold stocks for the long term and receive regular dividends, whether or not they benefit from the appreciation in the stock price.
As U.S. stock indices are near their all-time highs after massive rebounds from March 2020 lows, you might be nervous about an upcoming crash or bear market. UK markets haven’t rebounded as strongly, but there are some good companies paying large (and / or regular) dividends that could deliver decent returns regardless of how stocks move from June.
Purchase of dividend-paying shares in June 2021 – Conclusion
There might not be a better time to invest in stocks than now. But with global equity markets hitting new highs, it makes sense to diversify an aggressive portfolio by adding a few solid dividend paying stocks to smooth your returns… just in case. That’s why we’ve come up with a shortlist of some of the best UK dividend paying stocks.