Dividend stocks comprise of companies that pay regular dividends to their shareholder. These stocks usually belong to well-established firms and have a consistent track record of distributing earnings to shareholders. They can offer investors a source of predictable income and long-term growth potential.
On London Stock Exchange (LSE), there are many good dividends paying stocks that are often looked at by the income investors looking for regular income. Although dividend stocks are long-term investments, the most solid stocks may experience significant volatility in the short term due to market conditions. Therefore, it is extremely necessary to focus on finding companies with solid businesses background, stable income, and strong dividend-paying track record while investing for the long term.
Here is a review of the top 5 UK dividend stocks with high dividend yields that may be worth putting on your radar. EVRAZ Plc (LON: EVR)
EVRAZ plc is a steel manufacturing and mining group. In August, EVRAZ’s board approved the construction of a vanadium slag processing plant at Uzlovaya in Russia. The total project investment is expected to reach US$228 million, and the project is slated for launch in 2025.
For six months ended 30 June 2021, Evraz’s net profit was US$1,212 million compared to US$513 million in H1 2020. The company’s consolidated EBITDA was US$2,082 million, representing an increase of 94.0% year-on-year from US$1,073 million in H1 2020. Evraz declared an interim dividend of US$0.55 per share to shareholders.
Evraz’s dividend yield is 13.3%, and the company’s market capitalisation stands at £8,326.20 million as of 4 October 2021. Ros Agro Plc (LON: AGRO)
Ros Agro is an agricultural company engaged in producing sugar, oils, meat, and other food and agricultural items. For H1 2021, net sales of Ros Agro totalled RUB104,372 million (US$ 1,404 million), up by 45% year-on-year compared to H1 2020. Its net profit was RUB17,600 million (US$ 237 million), up by 81% year-on-year. Ros Agro announced a dividend of USD 4.45 (gross) per share for the year ended 31 December 2021, payable on or before 21 October 2021
Ros Agro’s dividend yield is 12.6%, and the company’s market capitalisation stands at £1,520.30 million as of 4 October 2021.
Ferrexpo Plc (LON: FXPO)
Ferrexpo is a mining company and an exporter of iron ore pellets. Ferrexpo’s revenues rose by 74% year-on-year to US$1,353 million in H1 ended 30 June 2021, and its underlying EBITDA grew by 147% year-on-year to US$868 million compared to US$352 million in H1 2020.
It declared an interim dividend of US 39.6 cents per share in H1 2021 compared to US 13.2 cents per share in H1 2020. Ferrexpo’s dividend yield is 12.3%, and the company’s market capitalisation stands at £1,825.91 million as of 4 October 2021. BHP Group Plc (LON: BHP)
BHP Group, formerly known as BHP Billiton, is a natural resources and mining company. On 4 October 2021, BHP Group inked an agreement to supply nickel sulphate from Western Australia to a battery-manufacturing joint venture between Toyota Motor and Panasonic.
For FY 202, BHP’s profits from operations stood at US$25.9 billion up by 80% year on year.
The company announced a dividend of US 301 cents per share in FY 2021 compared to US 120 cents per share in FY2020 to shareholders.
BHP Group’s dividend yield is 11.8%, and the company’s market capitalisation stands at £38,938.16 million as of 4 October 2021.
Gulf Keystone Petroleum Ltd (LON: GKP)
Gulf Keystone Petroleum Limited is an independent oil & gas production company. In June 2021, Gulf Keystone Petroleum received a gross payment of $35.1 million from the Kurdistan Regional Government.
For half a year ended on 2 September 2021, Gulf Keystone announced an interim dividend of 17.093 pence per share payable to shareholders on 8 October 2021. It recorded an average gross production to 31 August 2021 of 42,900 bopd, an increase of 18% year-on-year. Its H1 2021 revenue grew by 162% year-on-year to $130.7 million compared to $49.9 million in H1 2020.
Gulf Keystone Petroleum’s dividend yield is 10.8%, and the company’s market capitalisation stands at £421.91 million as of 4 October 2021.