Trustnet Magazine 89 November 2022 | Page 44

Top dividend-paying stocks in 2021
ADVERTORIAL FEATURE
accounted for almost a quarter of the UK total last year 2 . Restored banking dividends also contributed strongly . Overall in 2021 , 40 % of UK dividends came from just five stocks – Rio Tinto , Tesco , British American Tobacco , Royal Dutch Shell and BHP Group 3 .
The usual suspects Though dividends have continued their strong march upwards in 2022 , payouts are being driven by the usual suspects : oil , mining and financial companies . According to AJ Bell , just 10 stocks are forecast to pay dividends worth £ 47.7bn or 56 % of the forecast total for 2022 . This is not a recent phenomenon . When we look back over the last five / ten years , the top 10 payers have broadly been the same , and when stretched to the top 20 payers , the list is more or less static . After dotting the I ’ s and crossing the proverbial T ’ s – it ’ s not hard to figure out the risk that investors may be exposing themselves to . Because any investor looking to the UK for attractive dividends not only needs to be skilled at stockpicking but also needs to have an in-depth and strong view on the largest paying stocks . Now that ’ s a lot easier said than done , given how unpredictable markets have been over the last few years . This then raises an important question . How can investors retain

Top dividend-paying stocks in 2021

Stock
% of UK dividends paid
% of global dividends paid
Rio Tinto
13
0.9
British American Tobacco
7
0.5
Tesco
7
0.5
BHP Group
7
0.5
Royal Dutch Shell
6
0.5
Source : Janus Henderson Global Dividend Index ( JHGDI ), Link UK Dividend Monitor , as at 30 September 2021 , Henderson International Income Trust shows the income received in the 12 months to 31 August 2021 .
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