15 British Stocks Due to Raise Dividend Payouts in 2011

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 |  Includes: AZN, BBL, BP, BTI, DEO, GSK, HSBC, IMBBY, NGG, RBGPF, RDS.B, SCBFF, TSCDY, UL, VOD
by: David Hunkar

British companies are projected to increase dividend payouts by 10% this year, according to a report by Capita Registrars Dividend Monitor, which expects overall dividend yield to be 4.4% in 2011.

While most investors focus on stock prices, divdends are an important part of total return. Quoting the Barclays Equity Gilt Study, the monitor report notes that a £100 invested at the end of World War II would have been worth £5,721 at the end of 2008 in nominal terms. But if dividends were invested, the same £100 would be worth £92,460. This example shows the tremendous power of dividend reinvesting over many years.

The report added that 61% (or £34.4 billion ($55.3 billion)) of all dividends paid out in 2010 came from just 15 companies. Hence investors looking to add some high-quality British dividend stocks may start with the following:

1. Royal Dutch Shell plc (NYSE:RDS.B)
Sector: Oil
Current Dividend Yield: 4.58%

2. Vodafone (NASDAQ:VOD)
Sector: Telecom
Current Dividend Yield: 3.17%

3. HSBC Holdings (HBC)
Sector: Banking
Current Dividend Yield: 2.82%

4. GlaxoSmithkline (NYSE:GSK)
Sector: Major Drugs
Current Dividend Yield: 5.49%

5. Astra Zeneca (NYSE:AZN)
Sector: Major Drugs
Current Dividend Yield: 7.76%

6. British American Tobacco (NYSEMKT:BTI)
Sector: Tobacco
Current Dividend Yield: 2.76%

7. BP plc (NYSE:BP)
Sector: Oil
Current Dividend Yield: 3.56%

8. BHP Billiton (NYSE:BBL)
Sector: Metal Mining
Current Dividend Yield: 2.22%

9. Tesco (OTCPK:TSCDY)
Sector: Retail Grocery
Current Dividend Yield: 2.02%

10. National Grid plc (NYSE:NGG)
Sector: Electric Utility
Current Dividend Yield: 4.57%

11. Standard Chartered Banking (OTCPK:SCBFF)
Sector: Banking
Current Dividend Yield: 2.49%

12. Diageo (NYSE:DEO)
Sector: Beverages (Alcoholic)
Current Dividend Yield: 3.78%

13. Unilever (NYSE:UL)
Sector: Food Processing
Current Dividend Yield: 3.89%

14. Imperial Tobacco (ITYBY.PK)
Sector: Tobacco
Current Dividend Yield: 6.30%

15. Reckitt Benckiser Group (OTCPK:RBGPF)
Sector: Household products
Current Dividend Yield: 2.78%

Note: The dividend amounts and projected yield noted in the monitor report are based on stocks trading on the local market while the yields shown above are for the ADRs.

Disclosure: No Positions