SSE, Pearson, and Aggreko are three of the best paying dividend stocks for creating diversified portfolio income. A sizeable part of portfolio returns can be produced by dividend stocks due to their contribution to compounding returns in the long run. If you’re a long term investor, these high-performing top dividend stocks can boost your monthly portfolio income.
SSE plc (LSE:SSE)
SSE plc produces, generates, distributes, and supplies electricity and gas, as well as other energy-related services in the United Kingdom and Ireland. Established in 1989, and now run by Alistair Phillips-Davies, the company now has 21,157 employees and has a market cap of GBP £13.54B, putting it in the large-cap stocks category.
SSE has a juicy dividend yield of 6.80% and pays 68.23% of it’s earnings as dividends , with the expected payout in three years hitting 75.91%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from £0.58 to £0.913. The company has been a reliable payer too, not missing a payment during this time. SSE’s earnings per share growth of % outpaced the Global Electric Utilities industry’s 0.05096% average growth rate over the last year.
Pearson plc (LSE:PSON)
Pearson plc provides educational materials and learning technologies for teachers and students worldwide. Formed in 1844, and currently headed by CEO John Fallon, the company size now stands at 35,700 people and with the stock’s market cap sitting at GBP £5.64B, it comes under the mid-cap group.
PSON has an appealing dividend yield of 5.50% and is currently distributing -14.90% of profits to shareholders , with analysts expecting the payout ratio in three years to be 35.36%. PSON’s dividends have increased in the last 10 years, with DPS increasing from £0.293 to £0.52. They have been consistent too, not missing a payment during this 10 year period.
Aggreko plc (LSE:AGK)
Aggreko plc engages in the rental of temporary power and temperature control solutions to various customers. Founded in 1962, and now led by CEO Chris Weston, the company now has 6,181 employees and with the company’s market cap sitting at GBP £2.18B, it falls under the mid-cap group.
AGK has a wholesome dividend yield of 3.11% and has a payout ratio of 57.40% . AGK’s dividends have increased in the last 10 years, with DPS increasing from £0.0784 to £0.2712. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period.
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.