These FTSE 100 stocks are still paying dividends. I think they’re some of the best UK shares out there!

Some of the best UK shares can be found on the FTSE 100. These dependable dividend payers are particularly great buys, too, says Royston Wild.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Dividends have been falling like toy soldiers since the coronavirus crisis shocked the global economy earlier this year. Around 50% of FTSE 100 stocks have reduced, stopped, or postponed shareholder payments. And there could be more shattering changes to blue-chip dividend policies in the months to come.

This doesn’t mean that income investors need to panic, however. There remain plenty of terrific FTSE 100 companies that are determined to keep rewarding their shareholders with dividends. And I think some of these are the best UK shares that money can buy today.

Build a fortune

Let’s look at CRH (LSE: CRH) first. You’ll win no prizes by suggesting that the construction material giant’s revenues will suffer during the upcoming global recession. The company has already seen trading deteriorate since around mid-March. But business has been more resilient than some would expect, and particularly so in CRH’s core US marketplace.

CRH isn’t sitting on its hands and waiting to see how things transpire, either. It’s taking “comprehensive mitigating actions” to save cash by restricting capital expenditure to essential maintenance levels; it is slashing discretionary and non-essential spending; and it’s is undergoing significant restructuring and cost-cutting, too.

This FTSE 100 share is in pretty rude health. It has more than $6bn worth of cash and equivalents on the balance sheet, so no wonder it’s resisted the temptation to shave dividends. City analysts expect it to keep paying dividends in 2020 and possibly beyond too. Consequently CRH carries an inflation-beating yield just shy of 3%.

I reckon CRH is one of the best UK shares for Footsie investors. Profits growth will take a hit in the near term but its outlook further out remains quite robust. What’s more, the possible introduction of infrastructure stimulus packages in its key markets could give earnings a shot in the arm, too.

Another FTSE 100 dividend hero

Hargreaves Lansdown (LSE: HL) hasn’t been tempted to hobble shareholder payouts, either. The investment giant’s not had everything its own way of late as interest rate cuts and market weakness have smacked assets under management.

But it’s not all been bad news. In fact the rate at which it has added new business has been phenomenal. During the four months to April it recorded net new business of £4bn, up from £2.9bn in the corresponding 2019 period. This was driven by an addition of 94,000 new customers to its stable.

The boffins over at Berenberg said that the performance paid testament “to the power of the group’s brand, the quality of its user experience and (not least) the operational capacity to onboard that many customers amid Covid-19 restrictions”. It’s more than likely that Hargreaves Lansdown will continue to enjoy robust demand for its services, too, with record-low interest rates forcing savers to find better investment options for their cash.

Today the Footsie business sports a 2.2% forward dividend yield. It isn’t the biggest out there, clearly. But investors don’t need to worry about payouts being axed here any time soon. Hargreaves Lansdown is one FTSE 100 share I’d happily buy for my own share portfolio.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

How much an investor would need in a Stocks and Shares ISA to earn a £16,000 yearly income 

Harvey Jones works out how much an investor needs inside a Stocks and Shares ISA to generate a high and…

Read more »

A young woman sitting on a couch looking at a book in a quiet library space.
Investing Articles

How much would someone need to invest in UK shares to earn a £2,000 monthly passive income?

Is it possible to target several thousand pounds of passive income monthly by buying blue-chip dividend shares? Yes -- and…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

Here’s how £300 could set a stock market beginner on the path to riches in 2025!

Christopher Ruane digs into some practical details to explain how someone could start investing in the stock market with just…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Can Nvidia stock really merit its current valuation?

Nvidia stock has been on a tear, to put it mildly. This writer thinks that can be justified -- and…

Read more »

Investing Articles

Could Rolls-Royce shares halve in value this year – or double?

After another incredible 12 months for Rolls-Royce shares, Christopher Ruane considers whether the coming year could be even better --…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing Articles

2 FTSE 250 shares that could soar while Donald Trump is US President

Ben McPoland thinks these FTSE 250 shares look well-positioned to benefit under a Trump administration due to tax cuts and…

Read more »

Market Movers

Why the Netflix share price surged 14% after the market closed

Jon Smith runs over why the Netflix share price has rocketed higher and explains why he's optimistic about the direction…

Read more »

Investing Articles

£20,000 in an ISA? Here’s how an investor could target £550 of passive income a month

This writer shows how a respectable passive income stream can accumulate from pretty modest beginnings inside a Stocks and Shares…

Read more »