British American Tobacco PLC (ADR) (BTI), Tesco PLC (TSCO), Severn Trent Plc (SVT): 3 More Blue-Chip Dividend Bargains

Severn Trent
Severn Trent Plc (LON:SVT), the water utility that takes its name from the catchment area of two of Britain’s largest rivers, is something of a special case. Ever since Northumbrian Water was acquired by leading Hong Kong infrastructure group Cheung Kong Infrastructure Holdings a couple of years ago, it’s been clear that U.K. regulated water utilities are coveted by foreign cash-rich investors prepared to take a long-term investment view.

From the middle of May, Severn Trent Plc (LON:SVT)’s shares were driven up by a series of offers from a Canadian-led consortium. The price has fallen back after the consortium withdrew its interest last week following Severn Trent Plc (LON:SVT)’s rejection of a final £22-per-share proposal. The U.K. water company’s shares are now 20% below that level, which has pushed the forecast dividend yield up to 4.6%.

The article 3 More Blue-Chip Dividend Bargains originally appeared on Fool.com.

G. A. Chester has no position in any stocks mentioned. The Motley Fool recommends Tesco. The Motley Fool owns shares of Tesco.

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