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Best shares for dividends growth

During 2014 investors in UK-listed firms have scooped a record £99 billion in dividend pay outs. One of the best shares for dividends in 2014 was Vodafone who paid out a special £15.9 billion dividend. While you shouldn't put all of your cash into UK businesses if you want to build up a successful portfolio, a solid base of FTSE 350 companies will give you a solid footing in the market.
    Getty - Carl Court

FTSE 350

As the FTSE 100 only represents the top firms in the UK, you'll need to look at the FTSE 350, which combines the FTSE 100 Index of the largest 100 companies and the FTSE 250 Index of the next largest 250, to invest in the firms offering the best dividends. The following are firms which could make a successful portfolio.

WM Morrison Supermarkets (MRW)
  • Yield: 7.65%
  • Sector: Consumer Defensive

Vodafone Group (VOD)
  • Yield: 6.79%
  • Sector: Communication Services

Tesco (TSCO)
  • Yield: 6.34%
  • Sector: Consumer Defensive

ICAP (IAP)
  • Yield: 6.04%
  • Sector: Financial Services

J Sainsbury (SBRY)
  • Yield: 5.93%
  • Sector: Consumer Defensive

SSE (SSE)
  • Yield: 5.87%
  • Sector: Utilities

GlaxoSmithKline (GSK)
  • Yield: 5.58%
  • Sector: Healthcare

De La Rue (DLAR)
  • Yield: 5.47%
  • Sector: Industrials

Centrica (CNA)
  • Yield: 5.25%
  • Sector: Utilities

BP Plc (BP.)
  • Yield: 4.93%
  • Sector: Energy

National Grid (NG.)
  • Yield: 4.6%
  • Sector: Utilities

Final word

Although Morrisons has failed to maintain its growth within the retail sector and its sales are down while its net debt is increasing but analysts still recommend it thanks to the firm's progressive dividend policy. Vodafone's £15.9 billion dividend shows that the British mobile phone giant has investors in mind so this is a strong and safe bet for your money. The Tesco profit warning of 2014, its first for nearly 20 years, is putting investors off but the dividend payment remains worthwhile.

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