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Top 20 FTSE 100 Dividend Paying Stocks

THE INCOME INVESTOR: The largest companies in the UK source their revenues internationally, meaning your dividend stream is boosted by global economic growth.

Is your portfolio earning you the best possible rate of income? Are you prepared for this year’s interest rate rise? We show you how to maximise yield and where to find dividend payers in our Guide to Income Investing.

Britain’s largest companies are international players. The 100 stocks in the FTSE 100 operate on a global basis, drawing 70% of their revenues from outside of the UK. For many investors too wary to invest directly in emerging markets, buying FTSE 100 listed stocks can offer access to the emerging markets growth story, but with the comfort of a level of corporate governance and transparent shareholder dealings that are upheld in developed markets.

Income continues to be the main concern for investors in the UK – both in the run up to retirement, where dividends reinvested can significantly boost total returns, and for those that have already started drawing on their pension dividends can help supplement their post-retirement income.

FTSE 100 stocks may not offer the same potential for growth as their smaller counterparts, but broadly speaking the dividends paid by these megacaps are more secure than those paid by small and medium sized companies.

Using Morningstar Direct we screened for the top 20 dividend paying stocks in the FTSE 100. Please be aware some sectors such as energy stocks are currently displaying yields higher than their long-term average because of share price depression. There is a bias towards metals and mining stocks because of the effect of the fall in the oil price.

Anglo American (AAL)
Yield: 15.3%
Industry: Industrial Metals & Mining

BHP Billiton (BLT)
Yield: 11.6%
Industry: Industrial Metals & Mining

Glencore (GLEN)
Yield: 11.4%
Industry: Industrial Metals & Mining

Standard Chartered (STAN)
Yield: 9.8%
Industry: Banks – Global

Rio Tinto (RIO)
Yield: 8.1%
Industry: Industrial Metals & Mining

Royal Dutch Shell (RDSB)
Yield: 8.1%
Industry: Oil & Gas Integrated

BP (BP.)
Yield: 7.5%
Industry: Oil & Gas Integrated

HSBC (HSBA)
Yield: 7.2%
Industry: Banks – Global

Pearson (PSON)
Yield: 6.7%
Industry: 6.7%

SSE (SSE)
Yield: 6.4%
Industry: Utilities

WM Morrison Supermarkets (MRW)
Yield: 6.4%
Industry: Grocery Stories

Centrica (CNA)
Yield: 6.1%
Industry: Utilities

GlaxoSmithKline (GSK)
Yield: 5.7%
Industry: Healthcare

Berkeley Group (BKG)
Yield: 5.6%
Industry: Residential Construction

Legal & General Group (LGEN)
Yield: 5.6%
Industry: Insurance – Life

Old Mutual (OML)
Yield: 5.5%
Industry: Insurance – Life

Vodafone (VOD)
Yield: 5.5%
Industry: Telecoms Services

Standard Life (SL.)
Yield: 4.9%
Industry: Insurance – Life

Royal Mail (RMG)
Yield: 4.9%
Industry: Integrated Shipping

The original version of this article was published in September 2013. The data has changed significantly since then and has been updated accordingly, most recently on February 8, 2016.

Source: Morningstar Direct

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person’s sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

– See more at: http://www.morningstar.co.uk/UK/NEWS/132966/TOP-20-FTSE-100-DIVIDEND-PAYING-STOCKS.ASPX#sthash.mz9NpzLx.dpuf