U.K. Top 40 High-Yield Blue-Chip Stocks: Q3 2022

John Kingham profile picture
John Kingham
2.48K Followers

Summary

  • I'm launching the first edition of the UK Top 40 High-Yield Blue-Chip Stocks list.
  • The list is based on stocks from the FTSE 100 and FTSE 250.
  • Given the weak economic backdrop, it shouldn't be a complete surprise that the average dividend yield across this list of stocks is very high.

Blue chip and bull with stock market chart

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My website is called UK Dividend Stocks so I thought it was about time I started writing a bit more about well-known high-yield stocks.

So, with this post I'm launching the first edition of the UK Top 40 High-Yield Blue-Chip Stocks list.

The idea is to give you a list of well-known, large-cap, high-yield UK stocks as a way of simplifying the question, "what high-yield stock should I consider next?"

This is effectively a simplified version of the stock screen I publish as part of my monthly newsletter.

The list is based on stocks from the FTSE 100 and FTSE 250.

I sort the full list by a combination of size (market cap) and dividend yield (forecast yield), so the top stocks on the list have the best combination of large size and large yield.

The list gets its data from SharePad.

Given the weak economic backdrop, with the FTSE 100 trading close to fair value and the FTSE 250 below fair value, it shouldn't be a complete surprise that the average dividend yield across this list of stocks is very high.

The mean (average) yield is 6.8% and the median (middle) yield is 6.1%, both of which are way above the 3.1% yield you'll get from a FTSE All-Share tracker.

I've also added links to the list for stocks I've written about in detail.

Here's the full list:

No. Name (Links to Review) EPIC Index Sector Share Price Forecast Yield (%)
1

Rio Tinto PLC (RIO)

RIO FTSE 100 Industrial Metals and Mining £47.33 10.99
2 Glencore PLC (OTCPK:GLCNF) GLEN FTSE 100 Industrial Metals and Mining £4.87 10.04
3 NatWest Group PLC (NWG) NWG FTSE 100 Banks £2.55 11.34
4 Anglo American PLC (OTCQX:AAUKF) AAL FTSE 100 Industrial Metals and Mining £28.07 7.45
5

British American Tobacco PLC (BTI)

BATS FTSE 100 Tobacco £34.79 6.72
6 Vodafone Group PLC (VOD) VOD FTSE 100 Telecommunications Service Providers £1.13 6.88
7 Imperial Brands PLC (OTCQX:IMBBY) IMB FTSE 100 Tobacco £19.27 7.38
8 Legal & General Group PLC (OTCPK:LGGNY) LGEN FTSE 100 Life Insurance £2.58 7.51
9 Aviva PLC (OTCPK:AIVAF) AV. FTSE 100 Life Insurance £4.36 7.15
10 Lloyds Banking Group PLC (LYG) LLOY FTSE 100 Banks £0.45 5.41
11 HSBC Holdings PLC (HSBC) HSBA FTSE 100 Banks £5.34 4.82
12 National Grid PLC (NGG) NG. FTSE 100 Gas, Water and Multi-utilities £10.79 5.01
13 Persimmon PLC (OTCPK:PSMMF) PSN FTSE 100 Household Goods and Home Construction £14.97 15.18
14 M&G PLC (OTCPK:MGPUF) MNG FTSE 100 Investment Banking and Brokerage Services £2.04 9.6
15 Phoenix Group Holdings (OTCPK:PNXGF) PHNX FTSE 100 Life Insurance £6.14 8.21
16

Admiral Group PLC (OTCPK:AMIGF)

ADM FTSE 100 Non-life Insurance £21.69 7.68
17 BT Group PLC (OTCPK:BTGOF) BT.A FTSE 100 Telecommunications Service Providers £1.42 5.49
18 SSE PLC (OTCPK:SSEZF) SSE FTSE 100 Electricity £16.87 5.37
19 BP PLC (BP) BP. FTSE 100 Oil, Gas and Coal £4.53 4.46
20 GSK PLC (GSK) GSK FTSE 100 Pharmaceuticals, Biotechnology and Marijuana Producers £13.47 4.56
21 Barratt Developments PLC (OTCPK:BTDPF) BDEV FTSE 100 Household Goods and Home Construction £4.22 8.93
22 Barclays PLC (BCS) BARC FTSE 100 Banks £1.68 4.39
23 Shell PLC (SHEL) SHEL FTSE 100 Oil, Gas and Coal £23.08 3.78
24 Taylor Wimpey PLC (OTCPK:TWODF) TW. FTSE 100 Household Goods and Home Construction £1.08 8.71
25 WPP Group PLC WPP FTSE 100 Media £7.44 5.09
26 abrdn PLC (OTCPK:SLFPF) ABDN FTSE 100 Investment Banking and Brokerage Services £1.52 9.64
27

Unilever PLC (UL)

ULVR FTSE 100 Personal Care, Drug and Grocery Stores £39.17 3.76
28 Tesco PLC (OTCQX:TSCDF) TSCO FTSE 100 Personal Care, Drug and Grocery Stores £2.56 4.2
29 Direct Line Insurance Group PLC (OTCPK:DIISF) DLG FTSE 250 Non-life Insurance £2.08 9.85
30 Sainsbury (J) PLC (OTCQX:JSNSF) SBRY FTSE 100 Personal Care, Drug and Grocery Stores £2.10 5.94
31 CRH PLC (OTCPK:CRHCF) CRH FTSE 100 Construction and Materials £30.88 3.77
32 Schroders PLC (OTCPK:SHNWF) SDR FTSE 100 Investment Banking and Brokerage Services £26.84 4.51
33 St James's Place PLC (OTCPK:STJPF) STJ FTSE 100 Investment Banking and Brokerage Services £11.07 4.92
34 Mondi PLC (OTCPK:MONDF) MNDI FTSE 100 General Industrials £14.68 4.69
35 Berkeley Group Holdings PLC (OTCPK:BKGFY) BKG FTSE 100 Household Goods and Home Construction £35.73 6.2
36 Smurfit Kappa Group PLC (OTCPK:SMFTF) SKG FTSE 100 General Industrials £28.23 4.38
37 ITV PLC (OTCPK:ITVPF) ITV FTSE 250 Media £0.64 8.02
38 Intermediate Capital Group PLC (OTCPK:ICGUF) ICP FTSE 100 Investment Banking and Brokerage Services £12.99 6.04
39 Royal Mail Group PLC (OTCPK:ROYMF) RMG FTSE 250 Industrial Transportation £2.61 8.24
40 United Utilities Group PLC (OTCPK:UUGRY) UU. FTSE 100 Gas, Water and Multi-utilities £10.65 4.27

Currently, the plan is to update this list with a new blog post each quarter.

I do hold some of these stocks in my personal portfolio and the UK Dividend Stocks Portfolio, but I'm not going to say which ones (although if you read the detailed reviews, you'll find out which ones I own).

Hopefully, I'll have time to review one company from the list each month, so that over time this should build into a nice list of high-yield blue-chips with links to very detailed reviews of each company.

If you have any particular preference for which top 40 stock I should review next, let me know in the comments below.


Original Post

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

This article was written by

John Kingham profile picture
2.48K Followers
I write about high-quality UK dividend growth stocks and value them on an intrinsic value basis using discounted dividend models.

Additional disclosure: Disclaimer: This post provides information and education for investors. It does not provide financial advice. If you need personal financial advice you should speak to a regulated financial adviser.


© 2022 UKValueInvestor.com Ltd.

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