UK Top 40 High-Yield Blue-Chip Stocks: 2022 Q3

dividend stocks Sep 07, 2022
UK Top 40 High-Yield Blue-Chip Stocks

This 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.

Here's how I build the list, using data from SharePad:

  1. Start with all FTSE 100 and FTSE 250 stocks
  2. Remove anything where the forecast yield is zero
  3. Sort the remaining stocks by market cap, descending, and give them each a "cap rank" (from 1 to about 200)
  4. Sort the remaining stocks by forecast yield, descending, and give them each a "yield rank" (again, from 1 to about 200)
  5. Add the cap rank and yield rank to get a total rank
  6. Sort the list by total rank (ascending) and renumber the rank from 1 upwards
  7. Cut the list of at number 40

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 FTSE 100 Industrial Metals and Mining £47.33 10.99
2 Glencore PLC GLEN FTSE 100 Industrial Metals and Mining £4.87 10.04
3 NatWest Group PLC NWG FTSE 100 Banks £2.55 11.34
4 Anglo American PLC AAL FTSE 100 Industrial Metals and Mining £28.07 7.45
5 British American Tobacco PLC BATS FTSE 100 Tobacco £34.79 6.72
6 Vodafone Group PLC VOD FTSE 100 Telecommunications Service Providers £1.13 6.88
7 Imperial Brands PLC IMB FTSE 100 Tobacco £19.27 7.38
8 Legal & General Group PLC LGEN FTSE 100 Life Insurance £2.58 7.51
9 Aviva PLC AV. FTSE 100 Life Insurance £4.36 7.15
10 Lloyds Banking Group PLC LLOY FTSE 100 Banks £0.45 5.41
11 HSBC Holdings PLC HSBA FTSE 100 Banks £5.34 4.82
12 National Grid PLC NG. FTSE 100 Gas, Water and Multi-utilities £10.79 5.01
13 Persimmon PLC PSN FTSE 100 Household Goods and Home Construction £14.97 15.18
14 M&G PLC MNG FTSE 100 Investment Banking and Brokerage Services £2.04 9.6
15 Phoenix Group Holdings PHNX FTSE 100 Life Insurance £6.14 8.21
16 Admiral Group PLC ADM FTSE 100 Non-life Insurance £21.69 7.68
17 BT Group PLC BT.A FTSE 100 Telecommunications Service Providers £1.42 5.49
18 SSE PLC SSE FTSE 100 Electricity £16.87 5.37
19 BP PLC BP. FTSE 100 Oil, Gas and Coal £4.53 4.46
20 GSK PLC GSK FTSE 100 Pharmaceuticals, Biotechnology and Marijuana Producers £13.47 4.56
21 Barratt Developments PLC BDEV FTSE 100 Household Goods and Home Construction £4.22 8.93
22 Barclays PLC BARC FTSE 100 Banks £1.68 4.39
23 Shell PLC SHEL FTSE 100 Oil, Gas and Coal £23.08 3.78
24 Taylor Wimpey PLC 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 ABDN FTSE 100 Investment Banking and Brokerage Services £1.52 9.64
27 Unilever PLC ULVR FTSE 100 Personal Care, Drug and Grocery Stores £39.17 3.76
28 Tesco PLC TSCO FTSE 100 Personal Care, Drug and Grocery Stores £2.56 4.2
29 Direct Line Insurance Group PLC DLG FTSE 250 Non-life Insurance £2.08 9.85
30 Sainsbury (J) PLC SBRY FTSE 100 Personal Care, Drug and Grocery Stores £2.10 5.94
31 CRH PLC CRH FTSE 100 Construction and Materials £30.88 3.77
32 Schroders PLC SDR FTSE 100 Investment Banking and Brokerage Services £26.84 4.51
33 St James's Place PLC STJ FTSE 100 Investment Banking and Brokerage Services £11.07 4.92
34 Mondi PLC MNDI FTSE 100 General Industrials £14.68 4.69
35 Berkeley Group Holdings (The) PLC BKG FTSE 100 Household Goods and Home Construction £35.73 6.2
36 Smurfit Kappa Group PLC SKG FTSE 100 General Industrials £28.23 4.38
37 ITV PLC ITV FTSE 250 Media £0.64 8.02
38 Intermediate Capital Group PLC ICP FTSE 100 Investment Banking and Brokerage Services £12.99 6.04
39 Royal Mail Group PLC RMG FTSE 250 Industrial Transportation £2.61 8.24
40 United Utilities Group PLC 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, but you can also see the latest Top-40 list on the Free Resources page.

I'll also be adding a PDF version of the list to the dividend investing toolkit I email out to all blog subscribers. That PDF will be updated monthly with the latest share prices, forecasts yields and top 40 rankings.

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.

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