Dividend yields are an essential factor to consider when investing in stocks. The top FTSE dividend-yielding stocks can provide investors with a steady income stream and potential capital appreciation. We will take a look at the top FTSE dividend-yielding stocks. We will analyse each stock’s fundamentals and current valuation in mid-2022 to determine whether they are worth considering for your portfolio.
British American Tobacco
Dividend yield: 6.14%
British American Tobacco is a leading international tobacco company with a portfolio of well-known brands, including Lucky Strike, Dunhill, and Pall Mall. The company has a strong dividend history, paying out dividends for over 100 years, and currently has an annual dividend yield of 6.14%.
The company’s share price has been under pressure recently due to declining cigarette sales volumes. However, British American Tobacco is investing in new products such as e-cigarettes and heated tobacco products to offset this decline. The company is also benefiting from cost-savings initiatives and favourable currency movements. Overall, British American Tobacco is a defensive stock that offers investors a high dividend yield and potential for capital appreciation.
GlaxoSmithKline
Dividend yield: 4.38%
GlaxoSmithKline is a leading global pharmaceutical company with a portfolio of famous brands, such as Advair, Flovent, and Augmentin. The company has a strong dividend history and currently has an annual dividend yield of 4.38%.
The company’s share price has come under pressure in recent years due to the loss of patent protection on some of its essential drugs. However, GlaxoSmithKline invests heavily in research and development to bring new drugs to market. The company is also benefiting from cost-savings initiatives and favourable currency movements.
GlaxoSmithKline is a defensive stock offering investors a high dividend yield and potential for capital appreciation.
BP
Dividend yield: 3.91%
BP is a leading international oil and gas company in over 70 countries. The company has a strong dividend history and currently has an annual dividend yield of 3.91%.
BP’s share price has come under pressure in recent years due to the decline in oil prices. However, the company is investing heavily in new projects, such as its deep water oil field in the Gulf of Mexico, offsetting this decline. Additionally, BP is benefiting from cost-savings initiatives and favourable currency movements.
Overall, BP is a defensive stock that offers investors a high dividend yield and potential for capital appreciation.
Rio Tinto
Dividend yield: 9.79%
Rio Tinto is a leading international mining company in over 40 countries. The company has a strong dividend history and currently has an annual dividend yield of 9.79%.
Rio Tinto’s share price has come under pressure in recent years due to the decline in commodity prices. However, the company is investing heavily in new projects, such as its iron ore mine in Australia, to offset this decline. Additionally, Rio Tinto is benefiting from cost-savings initiatives and favourable currency movements.
Overall, Rio Tinto is a defensive stock that offers investors a high dividend yield and potential for capital appreciation.
AstraZeneca
Dividend yield: 2.15
AstraZeneca is a global pharmaceutical company with a portfolio of famous brands, such as Nexium, Crestor, and Symbicort. The company has a strong dividend history and currently has an annual dividend yield of 2.15%.
The company’s share price has come under pressure in recent years due to the loss of patent protection on some of its essential drugs. However, AstraZeneca invests heavily in research and development to bring new drugs to market. The company is also benefiting from cost-savings initiatives and favourable currency movements.
Overall, AstraZeneca is a defensive stock that offers investors a high dividend yield and potential for capital appreciation.
BHP Billiton
Dividend yield: 10.92%
BHP Billiton is a leading global mining company operating in over 30 countries. The company has a strong dividend history and currently has an annual dividend yield of 10.92%.
BHP Billiton’s share price has come under pressure in recent years due to the decline in commodity prices. However, the company is investing heavily in new projects, such as its iron ore mine in Australia, to offset this decline. Additionally, BHP Billiton is benefiting from cost-savings initiatives and favourable currency movements.
Overall, BHP Billiton is a defensive stock that offers investors a high dividend yield and potential for capital appreciation.
Diageo
Dividend yield: 2.12%
Diageo is a leading global consumer goods company with brands such as Johnnie Walker, Guinness, and Smirnoff. The company has a strong dividend history and currently has a dividend yield of 2.12%.
The company’s share price has come under pressure in recent years due to the slowdown in China and other emerging markets. However, Diageo is benefiting from cost-savings initiatives and favourable currency movements. Additionally, the company’s robust portfolio of brands should help it weather the current economic headwinds. Diageo is a defensive stock offering investors a high dividend yield and potential for capital appreciation.