With American stock markets looking toppy, you might want to protect your portfolio in June by buying some solid dividend-paying British stocks, so we have some to suggest.
Where Can I Buy Dividend Stocks in June 2021?
To buy dividend stocks this month, you can use the services of eToro and Capital, two of the best stock brokers.
eToro is a registered and regulated broker that offers its services to traders across many countries. The broker does not charge commission on stocks, so you can lower your costs when you buy dividend stocks using eToro. You can use eToro’s social trading feature to interact with other traders and learn from their experiences. The CopyTrading feature allows traders to copy the trades of experienced and successful traders, making it easier for less-experienced traders to execute different strategies. You can quickly open your account with eToro and start your investing journey.
Capital.com is a regulated broker that offers numerous useful services to traders, including an AI-powered trading platform with 70+ technical indicators, high leverage, and trading courses for beginners. The broker does not charge commission on opening and closing trades, so you can buy the best dividend stocks without incurring extra charges. You can quickly start trading by opening your trading account with Capital.com, which is a straightforward process.
Which Dividend Stocks to Buy in June 2021?
Among the myriad of stocks available, we have selected high dividend stocks that will boost your portfolio’s returns, give you extra cash that you can either reinvest or withdraw and provide stability to your portfolio.
1. BHP Group (LSE: BHPB)
BHP Group, a FTSE 100 company, operates in the metals and mining industry. It has a dividend yield of 5.10% as the company paid a total dividend of $1.20 (91.73p) per share in FY 2019-20. The company has already paid an interim dividend of $1.01 or 72.98p per share in FY 2021-21 and is yet to announce a final dividend, which — when announced — will overtake the dividend paid in FY 2019-20. The company has registered a strong 5-year compound annual dividend growth, which makes it suitable for dividend investors.
2. British American Tobacco (LSE: BATS)
British American Tobacco manufactures and markets cigarettes and tobacco products. In FY 2019-20, the company paid dividends of 210.4p per share, with a dividend yield of 8%. Although the stock has been trading in a range from January till May and is currently standing at a January level at 2,723p, a strong 8% dividend yield coupled with a 5-year 4.04% compound annual dividend growth rate makes it a suitable dividend stock for dividend investors.
3. Legal & General (LSE: LGEN)
Legal & General is a well-known British company that provides financial and asset management services to its clients. The stock is a popular dividend and passive income stock, and here are some of its dividend metrics:
Dividend per share: 17.57p
Dividend Yield: 6.60%
5-year compound annual dividend growth: 5.57%
4. United Utilities (LSE: UU)
United Utilities, the United Kingdom’s largest water supply company, also has a track record of paying stable and regular dividends. In 2020, the company paid 42.60p per share, registering a growth rate of 3.2% from the previous year. UU has a dividend yield of 4.70% and a 5-year compound annual dividend growth of 2.38%.
5. Persimmon (LSE: PSN)
British housebuilding company Persimmon generated around 15% return during the first five months as the stock climbed from 2720p to 3,160p. During 2020, the company paid out a cumulative dividend of 235p, which translates into a 4% dividend yield. The company’s trailing twelve months dividend yield turns out to be 7.28%. Though the company skipped dividends in 2019, it has historically paid dividends regularly. The 5-year compound annual dividend growth rate is 50.81%.
6. Phoenix Group Holdings (LSE: PHNX)
Phoenix Group Holdings, the largest insurance service provider in the UK, gained around 5% during the first five months of the year. The company has paid regular dividends to its shareholders, making the stock a possible investment candidate for dividend investors. Here are the important dividend metrics of the company:
Dividend per share: 47.50p
Dividend Yield: 6.80%
1-year dividend growth: 1.50%
5-year compound annual dividend growth: 3.23%
7. British Petroleum (LSE: BP)
Formerly (and formally) known as British Petroleum, BP generated a stellar 20% return during the first five months of the year as its price jumped from 254p to 306 during the period. While providing capital appreciation opportunities, this stock also provides regular dividends to stockholders.
In the year 2020, it registered a 7.3% dividend yield and provided a dividend of $0.26 per share. The $0.26 dividend was a reduction from the $0.41 paid in the previous year, which was due to the negative effects of the coronavirus pandemic. However, with the pandemic now hopefully under control, and the price of oil rising, we can see a recovery in dividends ahead. Nevertheless, the 1-year dividend growth rate is -36.36% and the 5-year compound annual dividend growth rate is -12.09%
Why Buy Dividend Stocks in June 2021?
Dividend stocks are those stocks that distribute their profits to investors in the form of dividends. They are ideal for investors who want to hold stocks for the long term and earn regular dividend income regardless of whether they also benefit from share price appreciation.
With American stock indices sitting close to their all-time highs after massive rebounds from the March 2020 lows, you might be nervous about a coming crash or bear market. The British markets didn’t rebound as strongly but there are some good dividend-paying companies that could generate decent returns whichever way stock prices go from June onwards.
The Bottom Line on Buying Dividend Stocks in June 2021
There may be no better time to invest in stocks than now, but with global stock markets hitting new highs, it makes sense to diversify an aggressive portfolio into some solid dividend-paying stocks to smooth out your returns. Just in case. That’s why we suggested a shortlist of some of the best British dividend-paying stocks.