Interactive Investor

18 FTSE 100 stocks about to return billions in dividend income

Even after reaching a record high recently, the UK is one of the highest-yielding stock markets in the world. City writer Graeme Evans runs through the calendar of dividend payments.

27th June 2024 13:30

by Graeme Evans from interactive investor

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GSK (LSE:GSK) shareholders will get a boost to their summer spending power when the drugs giant joins 17 other FTSE 100 companies in paying £3.35 billion in dividends during July.

The other widely-held blue-chip stocks in the dividend calendar include British Gas owner Centrica (LSE:CNA), Marks & Spencer Group (LSE:MKS) and the Premier Inn business Whitbread (LSE:WTB).

GSK’s payment of 15p a share is due to take place on 11 July, representing £612 million from first quarter trading. The figure is up on the previous year’s 14p a share worth £567 million.

The pharmaceuticals company expects to declare a total of 60p across 2024, part of a policy driven by a 40%-60% pay-out ratio through the investment cycle.

On the same day Centrica hands over 2.67p a share, which is worth a total of £141 million and comes a year after it re-introduced its summer dividend with 2p a share.

The pandemic caused Centrica to scrap June 2020’s £200 million distribution of 3.5p a share, with payments also on hold in the following two years.

Next month’s full-year dividend is still a far cry from the 8.4p a share in June 2019 or the bumper 12.08p a share received in June 2014.

The 122,000 shareholders of Marks & Spencer have also been boosted by the recent return of dividend payments following a Covid-driven pause.

January’s initial distribution of 1p a share will be followed by 2p a share on 5 July, reflecting the retailer’s much improved operating performance, balance sheet and credit metrics.

M&S shares are also back in the FTSE 100 index, having risen by more than 50% in the past year.

However, chair Archie Norman told shareholders ahead of the AGM on 2 July that the retailer is “in the foothills of what we can achieve.”

On the same day as M&S, Primark owner Associated British Foods (LSE:ABF) is due to pay £155 million to shareholders through an interim dividend of 20.70p.

The 46% increase on last year matches the surge in underlying earnings per share to 90.4p, following what chief executive George Weston called “a very strong” set of half-year results.

The shareholders of Whitbread are also set to see a big jump in their income compared with last summer. The leisure group has lifted its full-year dividend by 26% to 62.9p a share, with the distribution of £113 million due to land in shareholder accounts on 5 July.

Other popular stocks in the calendar include Sainsbury (J) (LSE:SBRY), which is paying an unchanged 9.20p a share worth £219 million on 12 July. Its policy of paying a dividend of around 60% of underlying earnings led to a total across 2023/24 of 13.1p, the same as the year before.

The grocer’s shares yield 5%, the second highest among July’s dividend payers behind WPP.

The advertising and marketing group stands at 5.3%, with its unchanged final dividend of 24.4p due for payment on 5 July and worth £263 million in total.

Source: interactive investor, SharePad. Data and dividend conversions to sterling from dollars at exchange rates correct on 27 June 2024. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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