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:
- Start with all FTSE 100 and FTSE 250 stocks
- Remove anything where the forecast yield is zero
- Sort the remaining stocks by market cap, descending, and give them each a "cap rank" (from 1 to about 200)
- Sort the remaining stocks by forecast yield, descending, and give them each a "yield rank" (again, from 1 to about 200)
- Add the cap rank and yield rank to get a total rank
- Sort the list by total rank (ascending) and renumber the rank from 1 upwards
- 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:
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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