Not sure which one are the best dividend paying stock, personally I like companies which pay dividend quarterly; Imperial Brands and GSK are two of my favourite, commercial property for monthly dividend (not sure whether or not they have suspend it).
Not an investment advice just my two cent!
Also have Imperial Brands and GSK, Halma, Unilever and Rio Tinto.
It’s tempting to go down the UK FTSE 100 dividend payers - HSBA, ULVR, BATS . but look to the states also - AT&T, P&G. JNJ
Also - don’t fall into the trap of ignoirng quality shares like Apple, 3M over cheap n cheerful shares like LLOY and IMB - ‘value traps’ come back to bite, hard ! … and when you come to sell these they’d probably halved in value, unlike the Apples of this world.
Small amendment to your comment…
The Ex-Dividend date is the date that you are no longer eligible for the dividend. You have to hold the stock on the day before the Ex-Dividend date.
Around 2 days after the Ex-Div date is the ‘Record Date’. This is the date the company checks who owned the shares the day before the Ex-Dividend date. The person on the shares register will be the person who holds the shares at market close the day before the Ex-Dividend day.
I guess my advice would be to ignore dividends entirely and just focus on picking good companies.
A company issuing a dividend is functionally the same as you selling part of your holding with 2 downsides: you don’t get to choose when and how much is sold and it may have negative tax implications.
If a company you like does pay a dividend then consider reinvesting it (unless you want to sell) and then sell at your own discretion - rather than being bound by the distributions.
So pick whatever you want and regularly sell shares to gain income as required and don’t assume a dividend is a positive indicator.
On a fundamental level, it seems quite possible that there will be less excess cash available to pay dividends or buybacks, from the likely business slowdowns in coming months and maybe years for some industries
Terry Smith is always worth a read:
https://www.fundsmith.co.uk/news/article/2020/04/30/financial-times---investors-never-let-a-crisis-go-to-waste
Great advice everyone, thank you.
@Jim_mcgrain this would not apply if you’d use an ISA, right?
Yes but bear in mind you can invest a max of £20k / year into the ISA ( current tax rules that can change etc. )
This topic was automatically closed 91 days after the last reply. New replies are no longer allowed.