3 Dividend Stocks to Watch
Income investors looking for new dividend stocks to add to their portfolio will want to keep a close eye on these three stocks, which offer a 6%+ yield.
1. Standard Life (LSE: SL)
Standard Life gained24% in the last four weeks, with shares reaching levels not seen since April. While the gains are attractive, investors may want to keep a cautious eye on this financial giant.
The company ditched redemptions at its property arm in the U.K. shortly after the referendum vote. While Standard Life saw its assets under management rise by 7% to £328bn between January and June, geopolitical and macrocosmic issues may punch a hole in investor appetite.
Standard Life has an estimated 19.7p per share dividend for the year, which is a boost from the 2015 dividend of 18.5p per share.
2. Paypoint (LSE: PAY)
Paypoint has a reputation for boosting its dividend each year. Over the last nine years, the company has raised its payouts at an annual rate of 9.9%.
Consistent earnings growth has allowed Paypoint to continue raising its dividend, and that trend will likely continue for the foreseeable future. In March 2017, the company is projected to raise its dividend to 60.3p per share thanks to a forecasted 8% bump to its bottom line. Last year, the dividend payout was 42.4p.
3. Persimmon (LSE: PSN)
Persimmon may be in the somewhat-risky sector of homebuilders in the U.K., and things could take a turn for the worse if the country dips into a recession and unemployment rises – both of which would put a huge dent in homebuyer appetite. But Persimmon still has dividend prospects.
Construction activity in the U.K. is still failing to meet homebuyer demand, and this is a trend that’s expected to continue in the near-term. The company is also protected by its tremendous cash pile, which could help offset a few bumps along the way.
Persimmon hada dividend of 110p per share in 2015, and that number is expected to rise to 112.5p this year, which equates to a 6.4% yield.
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