My 3 top FTSE 100 shares for extra dividend income!

On Tuesday, I wrote about my love of dividends: the common money funds paid by some corporations to shareholders. Over the years, this passive revenue has actually constructed up, contributing tens of hundreds of kilos annually to my household portfolio. But most London-listed shares don’t pay dividends. What’s extra, simply 10 FTSE 100 corporations accounted for over half (54%) of all dividends in 2020, in accordance with funding group A J Bell.As a dividend-loving investor, I’m at all times looking for high-yielding shares so as to add to my household portfolio. For me, one good place to look for chunky dividends is within the FTSE 100, the place I see loads of hidden worth. Here are three Footsie dividend dynamos that I’d contemplate shopping for for their beneficiant passive revenue.FTSE 100 inventory #1: BATS (9.7%)British (*3*) Tobacco (LSE: BATS) is the world’s largest cigarette producer. This makes BATS a inventory for moral and socially accountable traders to keep away from. But BATS has been a FTSE 100 dividend darling for many years. The enterprise — based 119 years in the past in 1902 — had world gross sales of £25.8bn in 2020. These big revenues generate monumental money flows, a lot of which is returned to shareholders as money dividends. At Thursday’s closing value of two,818.5p, BATS is valued at £64.6bn, making it a FTSE 100 super-heavyweight. At this degree, BATS shares commerce on a price-to-earnings ratio of 10.3 and an earnings yield of 9.7%. The dividend yield of almost 7.6% a yr is among the many 5 highest yields within the Footsie. That’s why I regard this smoking inventory as a top funding for income-seekers like me, though I don’t personal BATS but.Income share #2: LGEN (6.4%)Having labored within the insurance coverage business for 15 years, Legal & General Group (LSE: LGEN) is one British enterprise I’ve grown to admire. As a family title based in 1836, virtually everybody within the UK is aware of of this main supplier of life assurance, financial savings, and investments. Today, L&G manages over a trillion kilos of wealth for greater than 10m prospects. In quick, L&G is a category act in its sector — but it surely additionally faces intense aggressive stress from huge world rivals. On Thursday, L&G shares closed at 273.5p, valuing the group at £16.4bn — a FTSE 100 middleweight. Currently, this inventory trades on a price-to-earnings ratio of 13.1 and an earnings yield of seven.6%. L&G’s dividend yield of 6.4% a yr is among the many top 10 within the Footsie. It’s fairly uncommon that I get such a excessive money yield from such a stable enterprise, which is why L&G is on my purchase checklist for passive revenue.Story continuesHigh-yield inventory #3: GSK (5.7%)My third inventory is pharmaceutical large GlaxoSmithKline (LSE: GSK). This FTSE 100 share has jumped +17.3% from its 26 February low — excellent news for me as a GSK shareholder. I’ve held onto them for many years as the value has zigzagged between £10 and £20 since 2000. My loyalty comes just because this world healthcare Goliath has paid an 80p-a-share dividend for the previous 5 years. At Thursday’s closing value of 1,396.6p, this interprets right into a dividend yield above 5.7% a yr. This £69.5bn FTSE 100 titan’s shares at the moment commerce on a price-to-earnings ratio of 13.2 and an earnings yield of seven.6%. The subsequent quarterly dividend of 19p is because of be paid on 8 July to shareholders as at 20 May. For now, I’ll maintain holding this inventory, though GSK plans to chop its dividend in 2021/22. However, if the approaching minimize is greater than, say, 25%-30%, then I’d lastly promote and transfer on.The publish My 3 top FTSE 100 shares for extra dividend revenue! appeared first on The Motley Fool UK.More readingCliffdarcy owns shares of GlaxoSmithKline. The Motley Fool UK has advisable GlaxoSmithKline. Views expressed on the businesses talked about on this article are these of the author and due to this fact could differ from the official suggestions we make in our subscription providers resembling Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we consider that contemplating a various vary of insights makes us higher traders.Motley Fool UK 2021

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