Best dividend stocks

Type_45

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

El_Torro

Doing a quick Google search brings up a lot of articles on this subject. To show one example: https://www.ig.com/uk/trading-strategies/highest-yielding-dividend-stocks-to-watch-in-the-uk-190812

Investing this way isn't particularly fashionable these days, the thinking is that investing in high yield stocks will hurt your long term returns. You're better off looking at overall return, growth plus dividends, not just dividends.

Why do you want to invest in high yield stocks?

bigadaj

Many would say that ship has sailed, so appropriate you have raised it with your username.
Covid has hammered dividend paying stocks and to be honest income funds have performed poorly for some time compared with growth. 
Whether you are buying individual stocks or funds the best recommendation would be to ascertain what the forward payouts are rather than historic as they are likely to be far lower for the next year or two at least.  

bowlhead99

Type_45 said:

Hi all,
I'm a long time investor in VLS60 (acc) within an ISA.

But I'm now thinking of also investing in dividend-paying stocks (again, within my ISA).

Any thoughts on the best dividend stocks?

Dividend paying investments probably have a lower propensity for capital growth than investments which internally reinvest the capital in their portfolio of business opportunities rather than paying it out.

My higher-paying investments include LLPC, RAVP, THRL, NWBD, HICL, INPP, BBOX, TRIG, BP.A, GSF, ELLA, STAC, and even the odd non-paying share that's a punt for the future such as RE.B.  I added to most of them when share prices took a tumble earlier this year. However, a number of them are preference shares rather than equity and the prices of those will more likely fall rather than rise over the longer term, even if the yield is good.

I do have some shares or funds paying more moderate levels of income (e.g. Unilever paid over 140p for the last year, which is about 3% of its current share price) but you may find that level of dividend somewhat mundane. The 'best' dividend stock for you likely depends on whether you are looking for income at the cost of most of the growth potential, or a more moderate income potential in addition to growth potential, or a, non-zero but small income and mostly growth potential, and whether you are willing to overconcentrate your portfolio mix in certain industries or types of financial instrument to grind out a result.

Most people, self included, are looking for a blend of returns from a broad portfolio. If you have been getting your broad portfolio exposure from VLS60, which is not known for a particularly high dividend yield, is there a particular reason why you now want to chase dividend yield?

Thrugelmir

El_Torro said:

Why do you want to invest in high yield stocks?

Good dividend payers aren't necessarily just high yield.  Ability to grow in the future. As the business has a strong balance sheet and is cash generative is equally rewarding. High yield is sometimes an indication of unsustainability. 

dunstonh

Any thoughts on the best dividend stocks?

Do you really think that now is the right time in the cycle to be looking at yielding shares?

Also, do you realise that higher yielding shares tend to have lower price growth as they are reducing future growth potential of the company?

coastline

Useful site for looking at UK dividends. Just change the Tabs at the top for a quick look around.
https://www.dividenddata.co.uk/

couriervanman

Legal and General /Aviva/Vodafone

LobsterMemory

dunstonh said:

Any thoughts on the best dividend stocks?

Also, do you realise that higher yielding shares tend to have lower price growth as they are reducing future growth potential of the company?

Also, do you realise that the OP didn't mention investing in higher yielding shares?

And to keep on topic: DGE.

Xbigman

Lots of information on this site about dividend investment strategies. https://www.lemonfool.co.uk/ 
Many on the  site like high yield shares but look around and you'll find lots of information about income IT's and more dividend growth style shares (Unilever, Diageo). 
As mentioned by someone above, be very careful about historic yield data. Its future dividends that count. Spotting those companies whose dividend is secure is, of course, the real trick right now.

Darren

AnotherJoe

1980 just called and asked for its investment strategy back. 

Forget dividends look for overall growth as a mixture of both.