In this article, we discuss 5 UK dividend stocks to buy. You can see some more stocks from this list and our overview of the UK economy by clicking 10 UK Dividend Stocks To Buy.
5. British American Tobacco p.l.c. (NYSE:BTI)
Dividend Yield as of March 29: 8.64%
Number of Hedge Fund Holders: 18
British American Tobacco p.l.c. (NYSE:BTI) is a London-based manufacturer of vapor, traditional, and modern oral nicotine and tobacco products. British American Tobacco p.l.c. (NYSE:BTI) is one of the most notable UK dividend stocks, with a yield of 8.64% as of March 29.
British American Tobacco p.l.c. (NYSE:BTI) declared on February 17 a $0.735 per share quarterly dividend, a 1.4% increase from its earlier dividend of $0.725. The dividend will be distributed on May 9, for shareholders of record on March 25.
JPMorgan analyst Jared Dinges on March 24 maintained an Overweight rating on British American Tobacco p.l.c. (NYSE:BTI) and lifted the price target to £4,000 from £3,550.
Among the hedge funds tracked by Insider Monkey, 18 funds were bullish on British American Tobacco p.l.c. (NYSE:BTI) at the end of December 2021, up from 9 funds in the prior quarter. Rajiv Jain’s GQG Partners is the largest stakeholder of the company. Jain added British American Tobacco p.l.c. (NYSE:BTI) to his portfolio in Q4 2021 by purchasing 15.1 million shares worth $567.7 million.
4. Diageo plc (NYSE:DEO)
Dividend Yield as of March 29: 2.68%
Number of Hedge Fund Holders: 19
Diageo plc (NYSE:DEO) is a London-based producer of alcoholic beverages that are sold worldwide. The product portfolio of Diageo plc (NYSE:DEO) consists of scotch, whisky, gin, vodka, rum, wine, tequila, beer, and brandy.
Diageo plc (NYSE:DEO) yields 2.68% as of March 29. The company declared on February 23 a £0.2936 per share interim dividend, an increase of 5% from its prior dividend. The dividend will be distributed on April 12, to shareholders of record on February 25.
On March 17, JPMorgan analyst Celine Pannuti upgraded Diageo plc (NYSE:DEO) to Overweight from Neutral with an unchanged price target of £4,350. The analyst believes that Diageo plc (NYSE:DEO) is strategically positioned in the United States to outgrow peers with premium pricing and a strong product portfolio.
As per Insider Monkey’s Q4 data, 19 hedge funds were bullish on Diageo plc (NYSE:DEO), up from 18 funds in the earlier quarter. Nicolai Tangen’s Ako Capital held the largest stake in the company, with 1.7 million shares worth $382.6 million.
Here is what Weitz Investment Management has to say about Diageo plc (NYSE:DEO) in its Q1 2021 investor letter:
“We sold Diageo after twelve years of very profitable ownership. The global spirits company has done a fine job of growing earnings, and the stock has enjoyed an extra boost from substantial, multiple expansions along the way. While the business is in good hands, we think a repeat of our mid-double-digit annualized return experience is far less likely. We simply see better risk/reward profiles in the Fund’s other quality holdings.”
3. BP p.l.c. (NYSE:BP)
Dividend Yield as of March 29: 4.43%
Number of Hedge Fund Holders: 26
BP p.l.c. (NYSE:BP) is a London-based energy business that sells natural gas and biofuels, in addition to operating renewable power generation facilities. BP p.l.c. (NYSE:BP)’s dividend yield on March 29 stood at 4.43%.
On February 8, BP p.l.c. (NYSE:BP) reported earnings for the fourth quarter, posting an EPS of $1.23, beating estimates by $0.09. Revenue over the period jumped roughly 13% year-over-year to $50.55 billion, ahead of market consensus by $26.07 billion.
BP p.l.c. (NYSE:BP) declared on February 10 a $0.3276 per share quarterly dividend, in line with previous. The dividend was distributed on March 25, to shareholders of record on February 18.
The company announced on March 25 plans to spend £1 billion to expand electric vehicle charging in the United Kingdom over the next decade to meet increasing demand for green energy. This investment will triple the number of public charging stations in BP p.l.c. (NYSE:BP)’s UK networks.
On March 23, Deutsche Bank analyst James Hubbard reiterated a Buy recommendation on BP p.l.c. (NYSE:BP), but lowered the price target on the shares to £450 from £455.
According to the Q4 database of Insider Monkey, 26 hedge funds were bullish on BP p.l.c. (NYSE:BP), compared to 29 funds in the previous quarter. Fisher Asset Management is the biggest shareholder of the company, with 13.7 million shares worth over $367 million.
2. CNH Industrial N.V. (NYSE:CNHI)
Dividend Yield as of March 29: 2.00%
Number of Hedge Fund Holders: 35
CNH Industrial N.V. (NYSE:CNHI) is based in London, providing agricultural and construction equipment, as well as specialty vehicles. On March 1, CNH Industrial N.V. (NYSE:CNHI) approved a share buyback program of up to €100 million. The company’s CEO, Scott W. Wine, on February 24 also purchased 150,000 common shares at an average price of $13.6881.
On March 4, CNH Industrial N.V. (NYSE:CNHI) declared a €0.11 per share annual dividend. The dividend will be paid on May 5, to shareholders of record on April 20. The stock yields 2% as of March 29.
JPMorgan analyst Tami Zakaria on March 28 raised the price target on CNH Industrial N.V. (NYSE:CNHI) to $20 from $19 and maintained an Overweight rating on the shares.
Among the hedge funds tracked by Insider Monkey, 35 funds reported owning stakes in CNH Industrial N.V. (NYSE:CNHI) at the end of December last year, amounting to $1.4 billion. Harris Associates, the largest shareholder of CNH Industrial N.V. (NYSE:CNHI), owns approximately 98 million shares of the company worth $1.90 billion.
Here is what Longleaf Partners Fund has to say about CNH Industrial N.V. (NYSE:CNHI) in its Q4 2021 investor letter:
“CNH Industrial (55%, 2.51%; 16%, 0.65%), a leading farm equipment and commercial vehicle manufacturer globally, was another top performer for the year. CNH reported strong results throughout the year, beating our initial conservative expectations. The US agricultural cycle has been firmly in the company’s favor, driven by commodity price strength, healthy farm balance sheets, advanced technology adoption, and aging fleets feeding replacement demand. We believe we are past the mid-cycle but expect the strong upcycle to continue with the solid order books and strong visibility. On December 31, 2021, CNHI completed the demerger of its on-highway business, which includes its IVECO commercial vehicles and FPT powertrain businesses. This transaction creates a pure play off-highway company comprising the higher-multiple agricultural, construction and specialty vehicle businesses. We expect a narrowing of the discount to the net asset value once we have two focused companies valued at peer multiples.”
1. AstraZeneca PLC (NASDAQ:AZN)
Dividend Yield as of March 29: 2.18%
Number of Hedge Fund Holders: 42
AstraZeneca PLC (NASDAQ:AZN) was incorporated in 1992 and is headquartered in Cambridge, the United Kingdom. The company develops medicine and vaccines for cardiovascular, renal, respiratory, immunology, and metabolism diseases, among others. AstraZeneca PLC (NASDAQ:AZN)’s fourth quarter revenue of $12 billion exceeded estimates by $950.20 million.
On February 10, AstraZeneca PLC (NASDAQ:AZN) declared a second interim dividend of $1.97 per share, which was paid on March 28. The stock yields 2.18% as of March 29.
Stifel analyst Eric Le Berrigaud initiated coverage of AstraZeneca PLC (NASDAQ:AZN) on February 28 with a Buy rating and a 12,300 GBp price target. According to the analyst, AstraZeneca PLC (NASDAQ:AZN) will remain the fastest-growing pharma company over the next five years, and he does not see the stock “receiving the deserved valuation for this”.
As per the Q4 database of Insider Monkey, 42 hedge funds were bullish on AstraZeneca PLC (NASDAQ:AZN), with collective stakes amounting to $3.8 billion. Avidity Partners Management owns a significant position in the company, with 2.8 million shares worth $167 million.
You can also take a look at 10 Most Anticipated IPOs of 2022 and Top 10 Blue Chip Stocks to Buy in 2022.
