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The UK has the largest number of companies listed in the US markets after Canada. Among the many British ADRs, some stocks are good picks for dividend income. To select the British ADRs that are excellent dividend payers, I used The International Dividend Achievers Index.

Mergent created The International Dividend Achievers Index to track the performance of solid companies with increasing dividend payments. The components of this index have the following characteristics:

  • Incorporated outside the United States
  • Trade on the NYSE, NASDAQ or AMEX
  • Increased annual regular dividend payments for the last five or more consecutive years
  • Average daily cash volume exceed $500,000 per day in November and December before index reconstitution in January

The 13 British ADRs from The International Dividend Achievers Index are:

S.No. Company Ticker Current Dividend Yield Sector
1 British American Tobacco Plc BTI 2.76% Tobacco
2 WPP Plc WPPGY 1.81% Holding companies
3 InterContinental Hotels Group Plc IHG 1.71% Hotels and motels
4 National Grid plc NGG 6.63% Electric Utilities
5 Vodafone Group Plc VOD 3.91% Telecommunications
6 BP p.l.c. BP 5.76% Integrated Intl Oil
7 BHP Billiton Plc BBL 2.69% Misc. Metals and Mining
8 AstraZeneca Plc AZN 2.57% Drugs
9 Pearson Plc PSO 2.79% Publishing
10 Cadbury Plc CBY 1.45% Confectionery
11 Unilever Plc UL 2.61% Packaged Food
12 Smith and Nephew Plc SNN 1.14% Medical Supplies and Equip.
13 HSBC Holdings Plc HBC 2.58% Banks

The utility National Grid plc (NGG) has the highest dividend yield at 6.63%. The British oil giant BP has a dividend yield exceeding 5%. Among the large banks only HSBC Holdings (HBC) made it to the list. HSBC survived the financial crisis more easily than others. Unilever (UL), British American Tobacco (BTI) and Cadbury (CBY) have significant presence in emerging markets.

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This article has 4 comments:

  •  
    I don't know - isn't the UK even further up the creek than we are? Isn't the Pound Sterling pretty much the one currency which will lose value against the dollar? Maybe Brazilian or Australian dividend plays would be better.
    Nov 16 12:36 PM | Link | Reply
  •  
    Ya man their government lost it's AAA rating 6 months ago and they just don't have the natural and political resources the US has.
    Nov 16 01:43 PM | Link | Reply
  •  
    you can add Intel today....boosting dividend 12.5%


    Intel raising its dividend 12.5 percent


    On 10:50 am EST, Monday November 16, 2009
    Inc.Intel Corporation
    SANTA CLARA, Calif. (AP) -- Intel Corp., the world's biggest chip company, says it will raise its dividend by 12.5 percent starting next year.

    That brings its quarterly payment to 15.75 cents per share, up from 14 cents.

    The announcement comes despite heavy legal costs for Intel, which provides the microprocessors that run personal computers. The company said last week that it will pay rival Advanced Micro Devices Inc. $1.25 billion to settle claims that it used its market clout to elbow AMD out of the competition.

    Intel shares rose 39 cents, or 2 percent, to $20.21 in morning trading Monday.
    Nov 16 01:45 PM | Link | Reply
  •  
    you need not view bp.plc as a british play but as a international stock. which holds large holdings in the US, Canada.Brazillian, and has started drilling in Araq.
    Nov 17 02:59 PM | Link | Reply