The FTSE 100 is an index that includes the top 100 companies from the London Stock Exchange. They are ranked by their market capitalization. However, the market cap may not be an investor’s only interest in a stock.

Many of the stocks in this index pay dividends. Those seeking income from stocks will want to know what kinds of dividend yields are available. FTSE stock dividend yields range from approximately 1% to 9%. We have selected the top five FTSE stocks that pay a dividend. Data is as of November 13, 2020.

Key Takeaways

  • The FTSE 100 includes the top 100 companies from the London Stock Exchange.
  • Rankings are by market capitalization and include Centrica, SSE, GlaxoSmithKline, Marks & Spencer Group, and BP.
  • Many top stocks also pay dividends.

1. EVRAZ (EVR)

EVRAZ, Plc is a vertically integrated steel, mining and vanadium business with operations in Russia, the United States, Canada, the Czech Republic and Kazakhstan. EVRAZ is one of the top steel producers in the world based on crude steel production 

The company pays a semi-annual dividend. It has a dividend yield of 12.25%.

  • Avg. Volume: 1.4 million
  • Market Cap: GBP 5.4 billion
  • PE Ratio: 10.38
  • EPS: GBP 35.70
  • Dividend Yield: 12.25%
  • Price: GBP 371.00 

2. Imperial Brands (IMB)

Imperial Brands Plc, a leading British consumer goods business with a primary presence in the tobacco industry. together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products. It offers a range of cigarettes, fine cut and smokeless tobacco, papers, and cigars; and next generation product (NGP) portfolio, such as e-vapour products, as well as oral nicotine and heated tobacco products. The company sells its products under various brands, including Davidoff, Gauloises, JPS, West, L&B, Bastos, Fine, Winston, News, Parker & Simpson, blu, Kool, Horizon, Jade, Cohiba, Montecristo, Romeo Y Julieta, Backwoods, Skruf, Golden Virginia, Rizla, and Knox in approximately 160 countries worldwide. 

The company pays semi-annual dividends. It has the highest dividend yield in the FTSE 100 at a rate of over 10%.

  • Avg. Volume: 1.8 million
  • Market Cap: GBP 12.8 billion
  • PE Ratio: 15
  • EPS: GBP 90.2
  • Dividend Yield: 10.26%
  • Price: GBP 1,355.00 

3. M&G (MNG)

M&G Plc, through its subsidiaries, engages in savings and investment businesses in the United Kingdom and internationally. The company operates through two segments, Savings & Asset Management and Heritage. It offers retirement, savings, and investment management solutions to its retail and institutional customers. The company also provides individual and corporate pensions, annuities, life, savings, and investment products. It serves individual savers and investors, financial advisers and paraplanners, and institutional investors. The company was formerly known as M&G Prudential PLC and changed its name to M&G plc in September 2019. It has a dividend yield of 10%.

  • Avg. Volume: 4.9 million
  • Market Cap: GBP 4.7 billion
  • PE Ratio: 4.34
  • EPS: GBP 42.0
  • Dividend Yield: 10%
  • Price: GBP 182.00 

4. Standard Life Aberdeen (SLA)

Standard Life Aberdeen Plc provides asset management services in the United Kingdom, Europe, North America, and Asia. The company offers investment solutions and funds; long-term savings and investment products to individual and corporate customers; and life insurance and savings products. It provides its products through institutional, wholesale, and retail distribution channels. It also makes real estate investments. It has a dividend yield of 8.3%.

  • Avg. Volume: 6.1 million
  • Market Cap: GBP 5.7 billion
  • PE Ratio: N/A
  • EPS: GBP -39.8
  • Dividend Yield: 8.3%
  • Price: GBP 260.00 

5. British Petroleum (BP)

BP is one of the largest oil and gas companies in the world. The company dates back to 1889 and has its headquarters in London. It explores for oil and gas and is involved in transporting and storing natural gas and oil. It also is involved in the refinery of petrochemical products such as gasoline, aviation fuel, diesel, and lubricants. The company distributes its products through nearly 3,000 service stations. The company is also involved in alternative energy, with working interests in 14 wind farms.

The company pays quarterly dividends. It has a dividend yield of just under 7%.

  • Avg. Volume: 26 million
  • Market Cap: GBP 47.9 billion
  • PE Ratio: N/A
  • EPS: -107p
  • Dividend Yield: 6.6%
  • Price: GBP 236.00 

The Bottom Line

When searching for robust dividend yields, it is important to choose companies that have a long track record of stability. Each of the companies on this list has a long history of profits, dividends and steady cash flow. Of course, an investor must also evaluate share price fluctuations to make sure an investment is not losing money despite the dividend.