3 FTSE Dividends Lifted This Week

Before you go, we thought you'd like these...
Before you go close icon

LONDON -- Hovering around the 5,678 mark, the FTSE 100 is on a trailing dividend yield of around 3.8%, which isn't bad at all, especially with so much growth opportunity in some depressed sectors.

It really does make sense to go for high-yielding shares in times like these, and today we take a look at three companies from the various FTSE indices that have lifted their dividends this week.

Taylor Wimpey
Housebuilder Taylor Wimpey (ISE: TW.L) reinstated its dividends today as it released interim results. After three years of no payouts while the sector was in a slump, we now have a first-half dividend of 0.19 pence per share. That's not much yet, but it's nice to see a dividend coming back, especially as the rest of the results were looking good.


Average selling price for the period rose 4.6% to 176,000 pounds, and the firm's operating margin strengthened to 11.4%, from 2011's first-half margin of 8.4%, as operating profit was boosted by 50% to 100.9 million pounds. The news was enough to raise the share price 2.1% to 45 pence.

Rexam
Packaging company Rexam (ISE: REX.L) lifted its interim dividend by 6% to 5 pence per share as it reported a 3% growth in sales to 2.16 billion pounds, with operating profit up 2% to 253 million pounds. Underlying earnings per share came in at 17.1 pence for a 2% rise, so the dividend is very well covered.

Despite that, the shares fell 11.6 pence (2.7%) to 423 pence on the announcement. Maybe investors had been expecting more, after the shares had already gained more than 20% over the past 12 months. Forecasts put the shares on a price-to-earnings (P/E) ratio of under 12, falling to 10 for 2013, and dividend forecasts suggest yields of 3.6% and 3.9%, so the shares are not looking overvalued.

Weir
Weir Group
(ISE: WEIR.L) , the mining, power oil and gas engineer, reported great interims on Tuesday, and lifted its dividend by a very nice 11% to 8 pence per share. With first-half earnings per share coming in at 69.9 pence, that's very well covered and the full-year forecast of a 2.2% yield should be safe.

That's not one of the best yields on the market by a long way, but Weir isn't really an income share, and investors who follow the City's consensus recommendation to buy the shares will be doing so in the hope of a share price recovery -- at 1,677 pence, the price is already back up 19% over the June low of 1,397 pence.

Finally, if you're in the market for FTSE shares with resilient dividends, look no further than "8 Income Plays Held By Britain's Super Investor". In this free report, we've analyzed the 20 billion-pound portfolio of legendary fund manager Neil Woodford. Click here now to discover his favorite companies with high dividends and good growth potential. But hurry -- the report is free for a limited time only.

If you're looking for riches from the oil and gas industry, the new Motley Fool report, "How To Unearth Great Oil & Gas Shares" might be just what you want. It's free, soclick herefor your personal copy.

Further Motley Fool investment opportunities

The article 3 FTSE Dividends Lifted This Week originally appeared on Fool.com.

Alan does not own any shares mentioned in this article. The Motley Fool has adisclosure policy.
We Fools may not all hold the same opinions, but we all believe that
considering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners