18 FTSE 100 stocks about to return billions in dividend income
Even after reaching a record high recently, the UK is one of the highest-yielding stock markets in the world. City writer Graeme Evans runs through the calendar of dividend payments.
27th June 2024 13:30
by Graeme Evans from interactive investor
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GSK (LSE:GSK) shareholders will get a boost to their summer spending power when the drugs giant joins 17 other FTSE 100 companies in paying £3.35 billion in dividends during July.
The other widely-held blue-chip stocks in the dividend calendar include British Gas owner Centrica (LSE:CNA), Marks & Spencer Group (LSE:MKS) and the Premier Inn business Whitbread (LSE:WTB).
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GSK’s payment of 15p a share is due to take place on 11 July, representing £612 million from first quarter trading. The figure is up on the previous year’s 14p a share worth £567 million.
The pharmaceuticals company expects to declare a total of 60p across 2024, part of a policy driven by a 40%-60% pay-out ratio through the investment cycle.
On the same day Centrica hands over 2.67p a share, which is worth a total of £141 million and comes a year after it re-introduced its summer dividend with 2p a share.
The pandemic caused Centrica to scrap June 2020’s £200 million distribution of 3.5p a share, with payments also on hold in the following two years.
Next month’s full-year dividend is still a far cry from the 8.4p a share in June 2019 or the bumper 12.08p a share received in June 2014.
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The 122,000 shareholders of Marks & Spencer have also been boosted by the recent return of dividend payments following a Covid-driven pause.
January’s initial distribution of 1p a share will be followed by 2p a share on 5 July, reflecting the retailer’s much improved operating performance, balance sheet and credit metrics.
M&S shares are also back in the FTSE 100 index, having risen by more than 50% in the past year.
However, chair Archie Norman told shareholders ahead of the AGM on 2 July that the retailer is “in the foothills of what we can achieve.”
On the same day as M&S, Primark owner Associated British Foods (LSE:ABF) is due to pay £155 million to shareholders through an interim dividend of 20.70p.
The 46% increase on last year matches the surge in underlying earnings per share to 90.4p, following what chief executive George Weston called “a very strong” set of half-year results.
The shareholders of Whitbread are also set to see a big jump in their income compared with last summer. The leisure group has lifted its full-year dividend by 26% to 62.9p a share, with the distribution of £113 million due to land in shareholder accounts on 5 July.
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Other popular stocks in the calendar include Sainsbury (J) (LSE:SBRY), which is paying an unchanged 9.20p a share worth £219 million on 12 July. Its policy of paying a dividend of around 60% of underlying earnings led to a total across 2023/24 of 13.1p, the same as the year before.
The grocer’s shares yield 5%, the second highest among July’s dividend payers behind WPP.
The advertising and marketing group stands at 5.3%, with its unchanged final dividend of 24.4p due for payment on 5 July and worth £263 million in total.
Company | Payment date | Current dividend yield (%) |
02-Jul | 2.2 | |
05-Jul | 1.9 | |
05-Jul | 1.0 | |
05-Jul | 3.3 | |
05-Jul | 5.3 | |
11-Jul | 2.9 | |
11-Jul | 0.5 | |
11-Jul | 3.6 | |
12-Jul | 0.7 | |
12-Jul | 4.5 | |
12-Jul | 5.0 | |
12-Jul | 2.1 | |
17-Jul | 4.8 | |
18-Jul | 3.5 | |
19-Jul | 1.3 | |
25-Jul | 2.0 | |
26-Jul | 2.0 | |
26-Jul | 0.7 |
Source: interactive investor, SharePad. Data and dividend conversions to sterling from dollars at exchange rates correct on 27 June 2024.
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