3 FTSE Dividends Lifted This Week

LONDON -- The FTSE 100 (INDEX: ^FTSE  ) currently offers a trailing dividend yield of a little more than 3.5%, which is quite a decent return when interest rates are low and the index has no clear direction. Indeed, buying shares now and taking the dividends, while waiting for a potential price recovery, could serve you very well.

And with the half-year reporting season well under way, many companies are actually defying the wider economic gloom and are in fact raising their dividends. Today we take a look at three that have upped their payouts this week:

Greggs
Greggs (LSE: GRG.L  ) continued its bumper dividend run on Tuesday as it lifted its interim dividend once again, up 3% this time to 6 pence per share. The high-street baker has raised its annual payout every year since it joined the stock market in 1984, which is a record unmatched by many.

Current City forecasts suggest a year-end dividend yield of 4%, rising to 4.3% for December 2013, and given the firm's illustrious record, few will doubt those projections. The 492 pence shares are currently on a forward P/E for 2012 of 12, falling to 11 for next year.

Meggitt
Engineering in the dumps? Don't you believe it! Meggitt (LSE: MGGT.L  ) raised its interim dividend by a cool 13% to 3.6 pence per share on Tuesday as the defense contractor announced its interim results.

Full-year forecasts suggest a modest yield of 3% based on the current price of 400 pence, but the payout should be very well covered by possible earnings. Furthermore, increasing the dividend by such a margin at the halfway stage suggests strong management confidence.

Xstrata
Xstrata (LSE: XTA.L  ) added optimism to the mini-recovery being enjoyed by mining companies at the moment when it lifted its interim dividend by 8% on Tuesday to $0.14 per share. Indeed, Rio Tinto (LSE: RIO.L  ) followed the trend today, boosting its interim payout by 40% to 46.43 pence per share.

Current forecasts for Xstrata put the 904 pence shares on a prospective dividend yield of 3%, rising to 3.5% next year. And although earnings are expected to fall by a third this year, there's a rebound expected next year, to give a lowly 2013 P/E of just eight.

Finally, if you're in the market for FTSE shares with resilient dividends, look no further than "8 Income Plays Held By Britain's Super Investor."

In this free report, we've analyzed the 20 billion pound portfolio of legendary fund manager Neil Woodford. Click here now to discover his favorite companies with high dividends and good growth potential. But hurry -- the report is free for a limited time only.

If you're looking for riches from the oil and gas industry, the new Motley Fool report, "How To Unearth Great Oil & Gas Shares" might be just what you want. It's free, so click here for your personal copy.

Further Motley Fool investment opportunities:

Alan Oscroft does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1977794, ~/Articles/ArticleHandler.aspx, 7/23/2014 8:17:38 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement