In this article, we will take a look at some of the best FTSE dividend stocks to buy.
In recent years, investors have turned away from UK equities, opting instead for global stocks, particularly high-growth options like US technology companies. The UK stock market is contracting at its fastest rate in over a decade, driven by takeovers of London-listed companies. According to Bloomberg data, approximately 45 companies have been delisted from the London market this year due to mergers and acquisitions, representing a 10% increase compared to the total for last year. This marks the highest number of delistings since 2010. Meanwhile, the value of deals targeting UK companies has surged by 81% this year, exceeding $160 billion.
Earlier this year, UK equities seemed to be experiencing a shift in sentiment among both large institutions and smaller investors. The British stock market continues to attract bargain hunters, as UK equities are now trading at a record discount of over 40% compared to global counterparts, based on Bloomberg data. Many of the takeover targets have been mid-cap companies listed on London’s AIM market, which typically feature low trading volumes and limited analyst attention.
That said, in November, investors returned to UK equity funds after three and a half years of consistent monthly withdrawals and a significant sell-off ahead of the Budget. Data from Calastone shows that retail investors directed a net £317 million into funds focused on UK stocks during the month. This inflow marks a notable shift, ending 41 consecutive months of net outflows, during which over £25 billion was withdrawn since May 2021.
Also read: 10 Undervalued Dividend Aristocrats To Buy According to Hedge Funds
The change in investor sentiment follows a challenging October for equity funds, which experienced record outflows as UK investors withdrew their money due to fears that the chancellor would raise capital gains tax (CGT). At the end of October, during the Budget announcement, Chancellor Rachel Reeves confirmed an immediate CGT increase. The lower rate rose from 10% to 18%, while the higher rate climbed from 20% to 24%.
Analysts suggest the UK stock market could be nearing a recovery, but the timing and pace of this turnaround remain uncertain. This is where dividend stocks play a key role. Prioritizing stocks with rising dividends can offer stability and consistency through different market cycles. In addition, they provide an opportunity for long-term growth, compounding returns over time until share prices rebound. The UK market offers one of the highest dividend yields among major markets. The FTSE 100 boasts a yield of 3.68%, while the FTSE 250, representing medium-sized UK companies, offers slightly lower yields but still provides attractive income opportunities. This allows investors to focus on higher-growth areas, such as smaller companies, while benefiting from increasing dividends. According to a report by BlackRock, currently, UK market dividends are growing at a rate of 2-3%, roughly in line with long-term inflation. Stocks with growing dividends typically have reliable cash flows, enabling them to increase payouts over time.
Janus Henderson’s 2023 annual dividend report confirmed the rise in dividend growth, noting that the UK distributed approximately $86 billion in dividends in 2023, a notable increase from the $63.1 billion paid out in 2020. Given this, we will take a look at some of the best FTSE dividend stocks according to yield.
Photo by Sharon McCutcheon on Unsplash
Our Methodology:
For this list, we scanned over 40 holdings of the UK Dividend Aristocrats ETF, which tracks the performance of the highest-yielding UK companies with at least 7 consecutive years of dividend growth. From this list, we chose 10 stocks with the highest dividend yields as of December 28 and arranged them in order from lowest to highest yield. We also measured hedge fund sentiment around each stock according to Insider Monkey’s database of 900 as of Q3 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Pearson plc (NYSE:PSO)
Dividend Yield as of December 28: 2.01%
Pearson plc (NYSE:PSO) is a London-based multinational education company that focuses on a wide range of educational publishing and services. The stock has surged by over 132% since March 2020 as the publisher successfully adjusted to the changing online education landscape. The company took advantage of the pandemic, earning substantial profits from its virtual schooling services. It saw a 43% increase in enrollments in its virtual schools during the 2020-2021 academic year. However, in fiscal 2023, the company experienced a 20% drop in Virtual Learning sales due to reduced enrollments.
Pearson plc (NYSE:PSO) is generating strong earnings this year, delivering over 33% returns to shareholders since the start of 2024. In the first half of the year, the company reported revenue of £1.7 billion ($1.25 billion), down from £1.9 billion ($2.39 billion) in the same period last year. After 2025, the company is set to achieve a mid-single-digit compound annual growth rate (CAGR) in underlying sales, along with continued margin improvements. This will result in an average annual increase of 40 basis points, driven by strong performance in its core business, realizing synergies, and expanding into related markets.
Pearson plc (NYSE:PSO)’s cash position came in strong in the first half of 2024. The company generated an operating cash flow of £185 million, up from £106 million in the prior year period. Its free cash flow showed an increase of £77 million at £27 million. This strong cash position has allowed the company to maintain its dividend payments for 33 years in a row. Currently, it offers an interim dividend of £0.074 per share and has a dividend yield of 2.01%, as of December 28.
At the end of Q3 2023, 10 hedge funds tracked by Insider Monkey held stakes in Pearson plc (NYSE:PSO), compared with 11 in the previous quarter. These stakes have a collective value of nearly $33 million. Among these hedge funds, Arrowstreet Capital was the company’s leading stakeholder in Q3.
9. AstraZeneca PLC (NASDAQ:AZN)
Dividend Yield as of December 28: 2.28%
AstraZeneca PLC (NASDAQ:AZN) is a Cambridge-based multinational pharmaceutical and biotech company that mainly specializes in innovative medicines. The stock has declined by over 3% in 2024 so far as the company faced some challenges this year. Its operations in China were recently disrupted after the company’s president in the country, Leon Wang, along with several other senior executives, were arrested in connection with fraud investigations by authorities. As a result, AstraZeneca anticipates a decline in sales in China, which is one of its key international markets.
However, AstraZeneca PLC (NASDAQ:AZN)’s Q3 earnings encouraged investors. Revenue grew by 18% year-over-year, reaching $13.6 billion. Adjusted earnings per share were $2.08, reflecting a 20% increase from the same period last year. The company’s oncology division is considered its most significant, generating $5.6 billion in sales during the third quarter, a 19% increase compared to the previous year. Parnassus Investments also highlighted this in its Q2 2024 investor letter. Here is what the firm has to say:
“AstraZeneca PLC (NASDAQ:AZN) gained after announcing robust first-quarter results and setting 2030 targets at an Investor Day that were above consensus expectations. We continue to believe that AstraZeneca’s robust pipeline and industry-leading innovation in oncology should support above-expectation revenue growth for the next several years.”
AstraZeneca PLC (NASDAQ:AZN) is one of the best FTSE dividend stocks on our list as the company has a strong cash position. In the first nine months of the year, the company generated nearly $9 billion in operating cash flow, up from $7.9 billion in the prior-year period. It ended the quarter with roughly $5 billion available in cash and cash equivalents. The company has been making regular dividend payments to shareholders for the past 32 years. It currently pays an interim dividend of $1.00 per share and has a dividend yield of 2.28%, as of December 28.
As of the close of Q3 2024, 32 hedge funds held stakes in AstraZeneca PLC (NASDAQ:AZN), compared with 49 in the previous quarter, as per Insider Monkey’s database. These stakes have a total value of nearly $2 billion.
8. Smith & Nephew plc (NYSE:SNN)
Dividend Yield as of December 28: 3.01%
Smith & Nephew plc (NYSE:SNN) is a British multinational medical equipment manufacturing company that offers a wide range of services and products to its consumers. In the third quarter of 2024, the company reported revenue of over $1.4 billion, up 4% from the same period last year. Though its revenue showed growth, it wasn’t quite encouraging for investors. In its earnings report, the company mentioned that the slow performance in China during the quarter reduced growth by 190 basis points, due to the impact of the Value-Based Pricing (VBP) on Sports, as well as sluggish demand and subsequent channel adjustments in Recon. The stock is down by roughly 8.7% in the past year.
That said, Smith & Nephew plc (NYSE:SNN) remains on track with its transformation into a higher-growth entity. There has been growth in the US Recon segment, which was previously a source of structural weakness, and the specific challenges in China are expected to subside by 2025. Ongoing improvements in both operating and commercial metrics indicate that the 12-Point Plan and cultural changes are increasingly becoming a core part of the company’s operations.
Smith & Nephew plc (NYSE:SNN)’s Advanced Wound Management (AWM) segment remained the winner amongst its other segments. It generated revenue of $422 million, which showed a 6.5% growth from the same period last year. According to analysts, the business possesses several strengths, including a broad and resilient customer base, a solid group of existing buyers, and proprietary technology.
Heartland Advisors made the following comment about Smith & Nephew plc (NYSE:SNN) in its Q3 2024 investor letter. Here is what the firm has to say:
“Health Care. Another new holding from our quality value watchlist is Smith & Nephew plc (NYSE:SNN), a leading medical device company for advanced wound care, sports medicine, and orthopedics.
The company has been hard at work for over two years implementing a badly needed self-help playbook. Those efforts are increasingly bearing fruit. While SNN’s wound care business enjoys a strong return on invested capital, its orthopedics group is well below peers or what is deemed acceptable. Management is taking several measures to improve asset utilization and capital allocation. Fixing the orthopedic segment’s performance can unlock significant value for shareholders…” (Click here to read the full text)
Smith & Nephew plc (NYSE:SNN) is a strong dividend payer. The company never missed a dividend payment since 1937, which makes SNN one of the best FTSE dividend stocks on our list. Its interim dividend comes in at $0.144 per ordinary share for a dividend yield of 3.01%, as of December 28.
Smith & Nephew plc (NYSE:SNN) was included in 10 hedge fund portfolios at the end of Q3 2024, up from 9 in the previous quarter, as per Insider Monkey’s database. The stakes owned by these hedge funds have a collective value of over $27.4 million.
7. Hikma Pharmaceuticals PLC (LON:HIK.L)
Dividend Yield as of December 28: 3.09%
Hikma Pharmaceuticals PLC (LON:HIK.L) ranks seventh on our list of the best FTSE dividend stocks. The London-based pharmaceutical company specializes in high-quality generic medicines and other pharmaceutical products. The company’s diversified business model, which includes generics, injectables, and branded medications, offers numerous growth opportunities. This was reflected in its earnings, where the strong performance of the Branded division helped counterbalance sector-wide challenges in Generics. In addition, it has a robust pipeline of new product launches, with 36 filings submitted to the US Food and Drug Administration (FDA) in just the first half of the year. This impressive pipeline is expected to generate excitement and help mitigate any difficulties with current products. The stock has surged by roughly 12.5% in the past 12 months.
In the first half of 2024, Hikma Pharmaceuticals PLC (LON:HIK.L) reported revenue of $1.57 billion, which showed a 10% growth from the same period last year. The company’s operating profit also jumped to $351 million, from $245 million in the prior-year period. It also reported a solid cash position, with its operating cash flow amounting to $198 million.
Hikma Pharmaceuticals PLC (LON:HIK.L)’s Branded business performed exceptionally well, benefiting from continued investment in expanding its portfolio of oncology and chronic treatments. The Injectables segment is maintaining strong momentum, with new product launches and additional capacity contributing to growth. Moreover, the strategic acquisition of Xellia’s products, manufacturing facility, and R&D assets, once completed, is expected to support the long-term prospects of the business. The Generics division continues to stand out by focusing on more complex products and the quality of its US-based manufacturing capabilities. The outlook for 2024 remains positive, and the company has raised its revenue and profit guidance.
Hikma Pharmaceuticals PLC (LON:HIK.L) currently offers an interim dividend of $0.32 per share. The company has remained committed to its shareholder obligation, paying regular dividends to them since 2005. Moreover, in the first half of the year, it paid $104 million to shareholders through dividends. As of December 28, the stock has a dividend yield of 3.09%.
6. Diageo plc (NYSE:DEO)
Dividend Yield as of December 28: 3.15%
Diageo plc (NYSE:DEO) is a British multinational alcoholic beverage company that specializes in Scotch whiskey and other spirits. The stock has fallen by over 11.5% in the past 12 months, as the company has been facing a tough macroeconomic environment. However, analysts are positive about its growth because the company holds leading products in several categories, such as scotch, gin, and vodka. Diageo’s large scale enables it to invest heavily in marketing, keeping its brands top of mind for consumers and making it hard for competitors to challenge its market position. Moreover, the company’s size provides a significant advantage, allowing it to acquire smaller rivals and enhance their value before they pose a serious threat.
Diageo plc (NYSE:DEO)’s FY24 earnings were also encouraging for investors. The company reported revenue of $20.3 billion, which fell modestly by 1.4% from the same period last year. The report also mentioned that the company either grew or maintained its total market share in more than 75% of its total net sales across measured markets, including in the US.
Aristotle Capital Management, LLC made the following comment about DEO in its Q3 2024 investor letter:
“Headquartered in London, England, Diageo plc (NYSE:DEO) is a global leader in the alcoholic beverages industry. The company has a vast portfolio of over 200 well-recognized premium spirits (~80% of FY 2024 sales), beers (~15% and mostly Guinness) and other beverages (~5%) that are sold in nearly 180 countries. Led by its Johnnie Walker brand, Diageo is the world’s largest exporter of Scotch whiskey—its largest category at ~25% of sales—followed by other spirits such as tequila and vodka (~10% each). Diageo also owns a ~34% stake in the premium champagne and cognac maker Moët Hennessy (a subsidiary of LVMH Moët Hennessy Louis Vuitton).
The company is the product of the 1997 merger between Grand Metropolitan and Guinness and the subsequent divestiture of its food-related businesses. M&A continues to be a part of Diageo’s strategy, as regional brands often dominate local markets (which provides further opportunities for mergers and industry consolidation). Over the last decade, Diageo has also meaningfully increased its presence in the rapidly growing tequila market with the acquisitions of Don Julio and Casamigos…” (Click here to read the full text).
Diageo plc (NYSE:DEO) has also been gaining traction because of its strong cash generation. In FY24, the company generated an operating cash flow of $4.1 billion and its free cash flow amounted to $2.6 billion, increasing by $0.5 billion and $0.4 billion on a YoY basis, respectively. With this cash position in hand, the company was able to return $1 billion to shareholders during its fiscal year. It raised its annual dividend by 5% to $1.0348 per share. With a dividend yield of 3.15% as of December 28, DEO is one of the best FTSE dividend stocks on our list.
Insider Monkey’s database of Q3 2024 showed that 26 hedge funds held stakes in Diageo plc (NYSE:DEO), compared with 31 in the previous quarter. The total value of these stakes is nearly $703 million. Among these hedge funds, Orbis Investment Management owned the largest stake in the company.
5. Croda International Plc (LON:CRDA.L)
Dividend Yield as of December 28: 3.23%
Croda International Plc (LON:CRDA.L) is a specialty chemicals company, headquartered in Snaith, England. The company specializes in a diverse range of chemicals and related products. The stock has suffered a lot this year, declining by over 33.4% in the past 12 months. The drop is largely due to the cyclical nature of the chemicals industry. The company’s high fixed costs mean that when revenues fall, profits take a much sharper hit. This type of business carries inherent risks, but Croda also has long-term strengths that make it worth serious consideration, especially at its current low valuation.
Inventory levels are expected to normalize over time, and analysts predict that Croda International Plc (LON:CRDA.L) will perform well when that happens. While its profits tend to decline more steeply than sales during periods of weak demand, they are also expected to rise more rapidly during a recovery. Another key strength lies in the company’s competitive edge, supported by over 1,600 patents. This strong market position will be crucial when demand eventually rebounds.
Croda International Plc (LON:CRDA.L) reported mixed earnings in the first half of 2024. The company reported revenue of £816 million, falling by 7.4% from the same period last year. Its operating profit for the period came in at £114.4 million. Of all the segments, only Consumer Care recorded growth of 3% on a YoY basis. That said, its cash position was promising. The company’s free cash flow came in at £122.7 million, showing a significant 69% growth from the first half of 2023. Its net debt also fell to £507.9 million, from £537.6 million in December 2023.
Croda International Plc (LON:CRDA.L), one of the best FTSE dividend stocks, has a 22-year run of paying regular dividends to shareholders. During this period, the company raised its annual dividend from £0.0759 per share to £0.62 per share. Currently, it offers an interim dividend of £0.47 per share for a dividend yield of 3.23%, as of December 28.
4. Unilever PLC (NYSE:UL)
Dividend Yield as of December 28: 3.25%
Unilever PLC (NYSE:UL) ranks fourth on our list of the best FTSE dividend stocks. The London-based multinational consumer goods company offers a wide range of related products. The company has shelved its efforts to sell its €15 billion ice cream division to private equity firms and will now prioritize plans for an independent public listing of the unit. In March, the consumer goods giant revealed its intention to separate its ice cream business. It sought to attract interest from private equity buyers for the division, which features well-known brands like Ben & Jerry’s, Magnum, and Wall’s. The stock has surged by 18.5% in the past 12 months.
In the first half of 2024, Unilever PLC (NYSE:UL)’s sales on an underlying basis rose by 4.1%, supported by a third straight quarter of positive and improving volume growth. Pricing adjustments aligned with expectations, showing a gradual moderation. Enhanced gross margins allowed for increased investment in innovative initiatives, leading to a noticeable improvement in overall profitability. The company’s operating profit of €6.1 billion, grew by 17.1% from the same period last year.
Hotchkis & Wiley Funds highlighted Unilever PLC (NYSE:UL)’s strong performance in its Q3 2024 investor letter. Here is what the firm has to say:
“Unilever PLC (NYSE:UL) is one of the world’s leading suppliers of consumer goods in the food, home care, and personal care categories, maintaining #1 or #2 market share over 75% of its business. With a new CEO and the involvement of an activist investor (Trian), Unilever is focused on execution and consistency, expecting low to mid-single digit volume-driven top line growth over the medium term, profit growth ahead of sales growth due to operating leverage and mix, and consistent return of cash to shareholders. Additionally, the company has announced plans to separate the Ice Cream business (13% of 2023 sales), which is expected to be completed by the end of 2025 and increase organic sales growth to 4-6% annually. Over the last quarter, the stock price reached a five-year high, as the company has continued to execute the plans laid out above. Unilever has not yet released their official third quarter results but has reiterated their confidence in achieving 3-5% organic sales growth for the full year, with the majority of this growth being driven by volume.”
Unilever PLC (NYSE:UL) also reported a strong position in its cash segment. Its free cash flow for the period came in at €2.2 billion. The company ended the first half with €4.97 billion in cash and cash equivalents, compared with €4.1 billion at the end of December 2023. It currently offers an interim dividend of £0.3696 per share and has a dividend yield of 3.25%, as of December 28.
According to Insider Monkey’s database of Q3 2024, 22 hedge funds held stakes in Unilever PLC (NYSE:UL), up from 21 in the preceding quarter. These stakes are worth nearly $2 billion in total. Ken Fisher’s Fisher Asset Management was the company’s leading stakeholder in Q3.
3. NatWest Group plc (NYSE:NWG)
Dividend Yield as of December 28: 4.43%
NatWest Group plc (NYSE:NWG) is a retail and commercial bank, headquartered in London. The company offers mortgages, loans, credit cards, and related services. The stock has surged by nearly 84% in the past 12 months, outperforming the FTSE 100. Much of the company’s success over the past year can be attributed to the unusually high interest rates, enabling the bank to secure exceptionally strong returns on its loans. In 2024, the bank consistently maintained its net interest margin—the gap between interest paid and interest earned—above 2%.
In the third quarter of 2024, NatWest Group plc (NYSE:NWG) reported an attributable profit of £1.17 billion and a return on tangible equity (RoTE) of 18.3%. Customer deposits, excluding central items, rose by £2.2 billion, with growth across all three business sectors, primarily driven by increased savings. For 2024, the company expects to maintain a return on tangible equity above 15% and anticipates income, excluding notable items, to reach approximately £14.4 billion. In addition, total income, excluding notable items, amounted to £3.77 billion, marking an increase of £182 million, or 5.1%, compared to Q2 2024. This growth was primarily driven by lending and deposit expansion, along with margin improvement.
L1 Capital also highlighted this in its Q3 2024 investor letter. Here is what the firm has to say:
“NatWest Group plc (NYSE:NWG): NatWest is the largest commercial lender in the U.K. (20% share) and the second largest U.K. retail bank with ~13% of all mortgages. We see NatWest as best positioned in the U.K. Banking sector to benefit from improving margin trends, with topline growth supported by a rebound in U.K. housing and economic activity. Moreover, with significant buybacks owing to a strong capital position, NatWest should see ~8% EPS growth p.a. over the next three years vs. ~2% expected growth for CBA. Although CBA enjoys a more dominant market position in Australia vs. NatWest in the U.K., it appears overvalued in our view as it trades on ~24x FY25 P/E (historical highs) compared to only ~7x for NatWest.
NatWest (Long +10%) shares rallied on strong quarterly results including earnings ~28% ahead of consensus expectations and upgraded guidance driven by higher-than-expected revenues with net interest margin expanding 5bps. NatWest is the U.K.’s second largest retail bank with ~13% mortgage share and the U.K.’s largest commercial lender with ~20% share. In our view, NatWest leads the U.K. Banking sector with improving underlying operating trends, a superior mortgage margin trajectory and increasing interest rate hedge income. Importantly, management expects ongoing net interest margin expansion despite the impact of BoE rate cuts. We believe the company remains significantly undervalued, trading on an FY25 P/E multiple of only ~7x and a price to tangible book value ratio (P/TBV) of only ~1x. This is despite generating a 15% return on tangible equity and ~8% p.a. earnings growth over the next three years based on consensus expectations. We find these metrics and attributes very compelling, especially when compared to Australian banks.”
NatWest Group plc (NYSE:NWG) currently offers a semi-annual dividend of $0.1543 per share and has a dividend yield of 4.43%, as of December 28. For FY24, the company expects to pay ordinary dividends amounting to approximately 40% of its attributable profit.
The number of hedge funds tracked by Insider Monkey owning stakes in NatWest Group plc (NYSE:NWG) grew to 15 in Q3 2024, from 11 in the previous quarter. These stakes are worth over $33.8 million in total.
2. National Grid plc (NYSE:NGG)
Dividend Yield as of December 28: 5.81%
National Grid plc (NYSE:NGG) is a multinational electricity and gas utility company that offers services to its residential and professional consumers. The stock has declined by nearly 3% in the past 12 months. The recent developments surrounding the company’s growth plans, coupled with the near-term uncertainty, are likely contributing to the current cautious market sentiment.
That said, in its recent report, National Grid plc (NYSE:NGG) highlighted that over the past six months, the company has maintained strong momentum, marking an unprecedented increase in capital investment. The company successfully completed a £7 billion Rights Issue, which supports its ability to execute its five-year, £60 billion investment plan swiftly. Progress is well underway, with investment reaching a record £4.6 billion in the first half of the year. In the UK, work is advancing on 17 major onshore and offshore transmission projects, with ongoing consultations with communities and stakeholders. The company has also made significant progress in securing the supply chain for these projects. In the US, National Grid has made strides on the $4 billion Upstate Upgrade in New York and has continued to replace gas mains and reinforce networks across its communities.
National Grid plc (NYSE:NGG)’s financial outlook for the five-year period from 2024 to 2028 includes a total capital investment of approximately £60 billion. The group expects its assets to grow at a compound annual growth rate (CAGR) of around 10%, supported by a robust balance sheet. In addition, the company is aiming for an underlying earnings per share (EPS) growth rate of 6-8%, starting from the 2024/25 EPS baseline.
National Grid plc (NYSE:NGG) pays an interim dividend of £0.1584 for a dividend yield of 5.81%, as of December 28.
National Grid plc (NYSE:NGG) was a part of 19 hedge fund portfolios at the end of Q3 2024, up from 16 in the previous quarter, according to Insider Monkey’s database. The stakes held by these hedge funds have a total value of more than $267 million. With over 3.1 million shares, Renaissance Technologies was the company’s leading stakeholder in Q3.
1. Schroders plc (LON:SDR.L)
Dividend Yield as of December 28: 6.86%
Schroders plc (LON:SDR.L) is a London-based multinational asset management company. It offers a wide range of investment solutions to its consumers. The stock has underperformed this year, as challenges in the broader active fund management sector weighed it down. In addition, the growing popularity of index funds continues to put pressure on active managers like Schroders, creating uncertainty for 2025. Given this trend and the stock’s poor performance during a global bull market, analysts are doubtful about its ability to recover next year. In the past 12 months, the stock has declined by over 28%.
Despite these ongoing challenges, Schroders plc (LON:SDR.L) reported solid first-half earnings. The company’s assets under management reached a record high of £773.7 billion. Wealth Management continued to perform strongly, achieving 7% growth in advised assets. In Schroders Capital, positive net new business was recorded across all four private market sectors. Moreover, mutual fund net new business saw an increase in the first half, with particularly strong momentum in fixed income. There was also notable asset growth in some of the company’s joint ventures, especially in China. On the cost side, operating expenses were reduced by 1% year-on-year, reflecting the company’s continued focus on cost discipline.
Schroders plc (LON:SDR.L) continued to deliver strong performance for its clients in the long term. Over the past year, 69% of its assets have outperformed their respective benchmarks, compared to 56% at the end of the previous year. Over a three-year period, 62% of its funds have outperformed their benchmarks.
In the first half of the year, Schroders plc (LON:SDR.L) returned £101 million to shareholders through dividends, which makes it one of the best FTSE dividend stocks on our list. Currently, the company offers an interim dividend of £0.065 per share and has a dividend yield of 6.86%, as of December 28.
Overall, Schroders plc (LON:SDR.L) ranks first on our list of the best FTSE dividend stocks. While we acknowledge the potential for SDR.L to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SDR.L but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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