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10 Best FTSE Dividend Stocks To Buy Now

In this article, we discuss 10 best FTSE dividend stocks to buy now. If you want to see more stocks in this selection, check out 5 Best FTSE Dividend Stocks To Buy Now

The Office for National Statistics reported that the U.K. economy contracted by 0.3% in August, potentially initiating a long recession that can last throughout the winter. Wages have not kept up with the 10% inflation, which have sparked country-wide protests by public workers. The rising interest rates also wreaked havoc in the mortgage market, and banks withdrew products as rates soared for potential homebuyers. 

The British pound also dropped to a record low against the dollar as a result of the finance minister Kwasi Kwarteng, who has now been sacked, announcing a so-called “mini-budget.” The pound regained some of its strength when the government retracted some of its extreme policies, such as demolishing the top rate of tax for the highest income bracket. Prime Minister Liz Truss might not be able to make good on her promises to ramp up growth in the economy with the current recession fears plaguing the market. 

However, the FTSE 100’s total dividend payout is expected to exceed £81.5 billion in 2022, compared to £78.5 billion in 2021. This year, £1.6 billion in special dividends and a record £50.3 billion in share buybacks have already been declared. Since dividend stocks are the best hedges against inflation, income investors should check out some of the top FTSE dividend stocks to invest in, which include Unilever PLC (NYSE:UL), AstraZeneca PLC (NASDAQ:AZN), and Shell plc (NYSE:SHEL). 

Our Methodology 

We selected the following FTSE dividend stocks based on positive analyst coverage, strong business fundamentals, and solidity of dividend profiles. We have assessed the hedge fund sentiment from Insider Monkey’s database of 895 elite hedge funds tracked as of the end of the second quarter of 2022. 

Photo by Jp Valery on Unsplash

Best FTSE Dividend Stocks To Buy Now

10. Pearson plc (NYSE:PSO)

Number of Hedge Fund Holders: 6

Dividend Yield as of October 14: 2.48%

Pearson plc (NYSE:PSO) was founded in 1844 and is headquartered in London, the United Kingdom. It provides educational books, assessments, and services in the United Kingdom, the United States, Canada, the Asia Pacific, Europe, and internationally. Pearson plc (NYSE:PSO) operates through five segments – Assessment & Qualifications, Virtual Learning, English Language Learning, Higher Education, and Workforce Skills. On October 10, Pearson plc (NYSE:PSO) CEO Andy Bird noted that the company is becoming a “growth stock” as it seeks to transform into a digital firm which operates as a “one-stop shop” for learning. 

On August 10, Pearson plc (NYSE:PSO) announced a $0.081 per share semi-annual dividend. The dividend was distributed on September 22. Pearson plc (NYSE:PSO) delivers a dividend yield of 2.48% as of October 14. 

Deutsche Bank analyst Benjamin Zoega on October 5 raised the price target on Pearson plc (NYSE:PSO) to 1,140 GBp from 900 GBp and kept a Buy rating on the shares.

According to Insider Monkey’s second quarter database, 6 hedge funds held stakes worth $17.8 million in Pearson plc (NYSE:PSO), compared to 9 funds in the prior quarter worth $35 million. Kenneth Squire’s 13D Management is the leading stakeholder of the company, with 810,659 shares valued at $7.5 million. 

In addition to Unilever PLC (NYSE:UL), AstraZeneca PLC (NASDAQ:AZN), and Shell plc (NYSE:SHEL), Pearson plc (NYSE:PSO) is one of the best FTSE dividend stocks to buy now. 

9. Smith & Nephew plc (NYSE:SNN)

Number of Hedge Fund Holders: 12

Dividend Yield as of October 14: 4.53%

Smith & Nephew plc (NYSE:SNN) was founded in 1856 and is headquartered in Watford, the United Kingdom. The company develops, manufactures, markets, and sells medical devices worldwide. It is one of the best FTSE dividend stocks to buy now. On September 28, Smith & Nephew plc (NYSE:SNN) declared a $0.288 per average diluted share semi-annual dividend, in line with the prior interim dividend. The dividend is payable on October 26, to shareholders of record on September 30. The company delivered a dividend yield of 4.53% on October 14. 

On October 4, Barclays analyst Hassan Al-Wakeel maintained an Overweight rating on Smith & Nephew plc (NYSE:SNN) but lowered the price target on the stock to 1,530 GBp from 1,550 GBp.

According to the second quarter database of Insider Monkey, 12 hedge funds held stakes worth $105.4 million in Smith & Nephew plc (NYSE:SNN), compared to 15 funds in the earlier quarter worth $135.3 million. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading position holder in the company, with 1.65 million shares valued at $46 million. 

Here is what Palm Valley Capital Management has to say about Smith & Nephew plc (NYSE:SNN) in its Q3 2022 investor letter:

“We bought Smith & Nephew plc (NYSE:SNN) toward the end of the quarter. Smith & Nephew is a London-based medical device company that specializes in knee and hip replacements, sports medicine, and wound management. We purchased the ADR, which has declined meaningfully (-31% year-to-date) along with the British pound. While Smith & Nephew’s stock is priced in pounds, its revenues are in other major currencies, such as the dollar, euro, and yen. In 2021, 51% of its revenues were generated in the United States, while 31% were in other developed markets. We believe Smith & Nephew is a high-quality business that generates above average profit margins and abundant free cash flow. We were pleased the turmoil in the British pound provided us with the opportunity to purchase its shares at a discount to our calculated valuation.”

8. Barclays PLC (NYSE:BCS)

Number of Hedge Fund Holders: 13

Dividend Yield as of October 14: 6.46%

Barclays PLC (NYSE:BCS) is a London-based provider of financial products and services in the United Kingdom, Europe, the Americas, Africa, the Middle East, and Asia. The company offers retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. On October 13,  State Street Global Advisors announced that it will develop and manage a suite of active systematic fixed income solutions through a collaboration with Barclays PLC (NYSE:BCS)’s Research division.

On August 10, Barclays PLC (NYSE:BCS) declared a $0.105 per share semi-annual dividend. The dividend was paid to shareholders on September 16. The company delivers a dividend yield of 6.46% as of October 14. Barclays PLC (NYSE:BCS) is one of the best FTSE dividend stocks to invest in. 

JPMorgan analyst Raul Sinha on October 11 reiterated a Neutral rating on Barclays PLC (NYSE:BCS) and lowered the price target on the shares to 180 GBp from 200 GBp. 

According to Insider Monkey’s Q2 data, 13 hedge funds held stakes worth $152 million in Barclays PLC (NYSE:BCS), compared to 16 funds in the prior quarter worth $121 million. Mike Masters’ Masters Capital Management is a notable stakeholder of the company, with 4.50 million shares valued at $34.20 million. 

7. Vodafone Group Public Limited Company (NASDAQ:VOD)

Number of Hedge Fund Holders: 15

Dividend Yield as of October 14: 8.60%

Vodafone Group Public Limited Company (NASDAQ:VOD) is based in Newbury, the United Kingdom, and the company offers mobile services, fixed line services, broadband, television offerings, and convergence services in Europe and internationally. Vodafone Group Public Limited Company (NASDAQ:VOD) is one of the best FTSE dividend stocks to invest in, with a dividend yield of 8.60% as of October 14. 

Oddo BHF analyst Stephane Beyazian upgraded Vodafone Group Public Limited Company (NASDAQ:VOD) on October 4 to Outperform from Neutral with a price target of 142 GBp, up from 140 GBp. The analyst views the shares as too low into the sale of its Hungary unit, purchase of Nowo in Portugal, and merger talks with Three UK. A few more deals are possible, including a sale of the stake in Vantage Towers and a disposal of the Spanish fixed-line network, the analyst told investors. 

According to Insider Monkey’s data, 15 hedge funds were bullish on Vodafone Group Public Limited Company (NASDAQ:VOD) at the end of June 2022, compared to 14 funds in the last quarter. Jim Simons’ Renaissance Technologies is the leading stakeholder of the company, with nearly 24 million shares worth $372.5 million. 

6. British American Tobacco p.l.c. (NYSE:BTI)

Number of Hedge Fund Holders: 17

Dividend Yield as of October 14: 7.61%

British American Tobacco p.l.c. (NYSE:BTI) is a London-based company that provides tobacco and nicotine products to consumers worldwide. It is one of the highest yielding FTSE constituents, with a dividend yield of 7.61% as of October 14. On September 28, British American Tobacco p.l.c. (NYSE:BTI) declared a $0.7404 per share quarterly dividend, in line with previous. The dividend is distributable on November 15, to shareholders of record on September 30. 

Barclays analyst Gaurav Jain on August 30 raised the price target on British American Tobacco p.l.c. (NYSE:BTI) to 4,500 GBp from 4,400 GBp and reiterated an Overweight rating on the shares.

According to Insider Monkey’s second quarter database, 17 hedge funds held stakes worth $2.3 billion in British American Tobacco p.l.c. (NYSE:BTI), compared to 19 funds in the prior quarter worth $2.2 billion. Rajiv Jain’s GQG Partners is the leading position holder in the company, with more than 34 million shares worth $1.5 billion. 

Like Unilever PLC (NYSE:UL), AstraZeneca PLC (NASDAQ:AZN), and Shell plc (NYSE:SHEL), British American Tobacco p.l.c. (NYSE:BTI) is one of the best FTSE dividend stocks to consider. 

Here is what Distillate Capital has to say about British American Tobacco p.l.c. (NYSE:BTI) in its Q1 2022 investor letter:

“Distillate Capital’s International FSV Strategy is less expensive, more fundamentally stable, and less levered than the benchmark All Country World Ex U.S. (ACWI-EX US) Index.The largest new position is British American Tobacco (NYSE:BTI), which was not owned previously due to leverage, but now passes that threshold and offers an 11% free cash flow to market cap yield.”

Click to continue reading and see 5 Best FTSE Dividend Stocks To Buy Now

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Disclosure: None. 10 Best FTSE Dividend Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

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Elon Musk was even more blunt:

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As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
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The Hedge Fund Secret That’s Starting to Leak Out

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

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He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…