The FTSE 100 dividend stocks handing £10bn to shareholders in June

Income hunters have been spoiled for choice, and next month they’ll be rewarded with one of the biggest dividend windfalls. Here are the FTSE 100 stocks handing back cash in June.

A bumper £10.2 billion of dividends are heading to shareholders of just 10 blue-chip companies in June as the FTSE 100 index delivers its best returns of the year to date.

The distributions from the likes of HSBC (LSE:HSBA), Tesco (LSE:TSCO), BP (LSE:BP.) and BAE Systems (LSE:BA.) are yet another reminder of the income appeal of an index where the average yield is still a healthy 3.5%.

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The payments should come as a welcome boost for retail investors as they look to offset double-digit increases in food bills or the prospect of ever higher mortgage costs.

June’s haul brings to well over £40 billion the amount handed out by FTSE 100-listed companies in the first five articles of our dividend series. Smaller payments from a further five stocks including Admiral Group (LSE:ADM) and Sage (LSE:SGE) mean June’s overall total payout for UK blue-chips is £10.8 billion.

For ethical investors, however, the month ahead is not quite so lucrative as more than £5 billion of the payments are from “sin” stocks or companies shunned on environmental grounds.

Some of these firms also happen to be among the highest yielding stocks in the FTSE 100, given that Imperial Brands (LSE:IMB) and Glencore (LSE:GLEN) currently offer in the region of 8%.

Cigarettes maker Imperial is due to make its interim distribution on 30 June, when shareholders should receive 21.59p a share worth just under £400 million.

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And commodities giant Glencore, whose climate targets and ownership of thermal coal mines will face hostility at its AGM tomorrow, is due to pay £2.2 billion in a week’s time.

That’s the same day as defence giant BAE Systems hands out 16.6p a share, or £507 million after a year in which its valuation has soared in the wake of Russia’s invasion of Ukraine.

BP and Shell (LSE:SHEL) are also distributing dividends totalling £2.5 billion on 23 and 26 June respectively after a quarter in which they benefited from high oil prices.

An income stock in June’s dividend diary that comes with much wider investor appeal is Legal & General Group (LSE:LGEN). The insurer trades with a bumper yield of 8.4% and is scheduled to pay £832 million through 13.9p a share on 5 June.

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The month will also be notable for the return of quarterly dividend payments by HSBC, part of wider plans for a payout ratio of 50% of reported earnings per share for 2023 and 2024.

The banking giant is due to hand out £1.6 billion with a payment that converts to around 8.08p a share on 23 June. On the same day, supermarket giant Tesco is scheduled to distribute 7.05p a share, or £513 million subject to approval of shareholders at its AGM on 16 June.

The two other big FTSE 100 payers during June are the Nick Train-backed business information group RELX (LSE:REL), which is distributing 38.9p a share, or £739 million on 7 June, and consumer goods giant Unilever (LSE:ULVR) with £954 million heading to shareholder accounts on 15 June.

Source: interactive investor, SharePad. *Dividend converted from dollars to GBP at exchange rate on 25 May 2023.