5 UK Long-Term Dividend Stocks To Invest in 2024

Investing
5 UK Long-Term Dividend Stocks To Invest in 2024

As we get closer to 2024, savvy investors search for reliable dividend stocks to boost their portfolios. Some UK stocks stand out for their high yields and ability to weather financial storms. Here are five stocks with a history of paying dividends, their current dividend yields and Piotroski F-Scores, which measure their financial health.

1. Unilever (ULVR)

Unilever is a formidable player in the global consumer goods sector, renowned for its consistent dividend payments. The company has boosted its dividend annually for 63 consecutive years, a testament to its stability. Unilever’s dividend yield hovers around 3.5%, surpassing the FTSE 100 index’s average yield. With a Piotroski F-Score of 8/9, Unilever is financially robust and possesses significant growth potential.

2. British American Tobacco (BATS)

As the world’s largest tobacco company, British American Tobacco has a proven track record in dividend growth, having raised its dividend annually for the past 57 years. The company’s robust cash flow generation underpins a current dividend yield of about 4.5%, one of the highest in the FTSE 100. Its Piotroski F-Score of 7/9 suggests a solid financial foundation and promising growth prospects.

3. GlaxoSmithKline (GSK)

GlaxoSmithKline, a leading global pharmaceutical company, has consistently paid dividends, increasing them yearly for 55 years. Its current dividend yield is around 5.0%, making it one of the most lucrative in the FTSE 100. The company’s Piotroski F-Score of 6/9 indicates a sound financial status with moderate growth potential.

4. Vodafone (VOD)

Vodafone, a major player in the global telecommunications sector, boasts a solid dividend-paying history with increases in the past nine years. Presently, its dividend yield is about 5.5%, among the highest in the FTSE 100 – the Piotroski F-Score of 5/9 signals a financially stable company with moderate growth potential.

5. Schroders (SCH)

Schroders, a global asset management firm, has an impressive record of dividend payments, raising them annually for 11 years. The current dividend yield is around 4.0%, which is attractive compared to the FTSE 100 index average. With a Piotroski F-Score of 7/9, Schroders is financially robust and poised for strong growth.

StockMarket Cap (billion)YTD PirceDividend YieldMornigngstar Rating
Unilever£103.82+3.27%3.5%⭐⭐⭐⭐
British American Tobacco£84.29-1.74%4.5%⭐⭐⭐
GlaxoSmithKline£51.33-14.55%5.0%⭐⭐⭐
Vodafone£28.22+9.87%5.5%⭐⭐⭐
Schroders£33.24+9.87%4.0%⭐⭐⭐⭐

Investment Considerations

Before investing in any stock, it’s crucial to conduct thorough research. Key factors to consider include:

  • Dividend Growth: Seek companies with a history of increasing dividends.
  • Dividend Cover: Aim for companies with a dividend cover ratio of at least 2.0, indicating their capacity to sustain dividend payments.
  • Financial Strength: Ensure the company has a solid financial position and promising prospects.

Disclaimer

This article is not financial advice. The stocks mentioned are examples and not exhaustive. Researching or consulting a financial advisor before making investment decisions is vital. I also want to declare that I own Unilever, British American Tobacco, GlaxoSmithKline and Vodafone in my ISA and SIPP portfolios.

Finally, these five UK dividend stocks present promising opportunities for investors in 2024, thanks to their vital dividend records and robust financial health. Investing always carries risks, and it’s essential to make well-informed decisions.

  • Adam Grant

    Adam Grant is a highly qualified writer with a solid educational background in finance, holding a Bachelor's degree in Economics and a Master's degree in Business Administration (MBA). With his expertise in financial matters and a deep understanding of investment principles, Adam shares his insights to educate readers on the importance of financial literacy and smart investing strategies. Additionally, he has pursued courses in health and wellbeing, allowing him to offer a holistic perspective on achieving overall wellness in conjunction with financial stability.

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