Dividend stocks such as G4S and Babcock International Group can help diversify the constant stream of cash flows from your portfolio. Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. I’ve made a list of other value-adding dividend-paying stocks for you to consider for your investment portfolio.
G4S plc (LSE:GFS)
G4S plc, together with its subsidiaries, engages in the provision of security and related services in the United Kingdom, Ireland, Africa, Asia, the Middle East, Latin America, Europe, and North America. Formed in 1901, and currently lead by Ashley Almanza, the company provides employment to 570,000 people and with the stock’s market cap sitting at GBP £3.98B, it comes under the mid-cap stocks category.
GFS has a good-sized dividend yield of 3.66% and the company has a payout ratio of 51.09% . In the last 10 years, shareholders would have been happy to see the company increase its dividend from £0.0463 to £0.0941. It should comfort existing and potential future shareholders to know that GFS hasn’t missed a payment during this time.
Babcock International Group plc (LSE:BAB)
Babcock International Group PLC, together with its subsidiaries, provides engineering support services for defense, marine, aviation, and nuclear sectors. Founded in 1891, and now led by CEO Archibald Bethel, the company currently employs 35,000 people and with the stock’s market cap sitting at GBP £3.36B, it comes under the mid-cap category.
BAB has a great dividend yield of 4.28% and pays out 44.52% of its profit as dividends . The company’s dividends per share have risen from £0.0895 to £0.2815 over the last 10 years. During this period, the company has not missed a dividend payment – as you would expect from a company increasing their dividend.
Telecom Plus PLC (LSE:TEP)
Telecom Plus PLC provides a range of utility services to residential and small business customers in the United Kingdom. Founded in 1996, and headed by CEO Andrew Lindsay, the company employs 1,066 people and has a market cap of GBP £926.37M, putting it in the small-cap category.
TEP has a sumptuous dividend yield of 4.13% and is distributing 125.59% of earnings as dividends . The company’s dividends per share have risen from £0.08 to £0.48 over the last 10 years. They have been dependable too, not missing a single payment in this time. Over the next three years, analysts predict double digit earnings growth for Telecom Plus of 57.9%.
For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.