Use of highest dividend stock As a tool for the UK market, we have shortlisted two companies offering high dividends. Abdan PLC (GB: ABDN) and B&M European Value Retail SA (GB: BME) is a prominent market participant known for its reliable dividend payouts over the years. But in recent years, these companies have struggled with high costs that have eroded profits, cutting dividends.
Analysts say the stocks haven’t shown much growth in terms of share price growth, but they’re still attractive options for income investors.
Let’s take a closer look at these companies.
Abdan PLC
abrdn is a global investment firm that helps clients save and invest for their future. The company manages approximately £500bn of assets across his three core divisions: investments, advisors and individuals.
The stock has seen some tough times over the past three years, but the company’s share price has recovered slightly. After 11.6% increase last year.
in the company dividend The yield is 7.13%, above the sector average of 3.91%. For the past three years, the company has pegged its dividend at his 14.6p per share. Analysts expect the 2023 dividend to be cut slightly to he 14.1p per share. However, even with this reduction, the company remains one of the top dividend companies in the UK market.
Is ABDN a good buy?
According to TipRanks, ABDN strain receives a ‘strong sell’ rating based on 6 sell recommendations and 1 hold recommendation.
The expected average price is 189.57p, representing a 5.4% drop from current trading levels.
B&M Europe Value Retail SA
B&M is a UK based retailer offering a wide range of general products and groceries at affordable prices.
Yesterday, the company made an announcement for 2023. income The report said sales rose 6.6% to £4.98 billion. However, profit before tax for the full year was down 17% to £436m compared to £525m in the same period last year. This was mainly due to higher operating costs, which increased him by 5.7% over the year.
Due to declining profits, the company decided to cut its bottom line dividend 9.6p per share, up 17%. As a result, the company’s total dividend is 14.6p for him, down from 16.5p for the previous year. The company’s dividend yield is 3.5%.
Nonetheless, analysts see this as a temporary situation as the company remains optimistic about its financial outlook for fiscal 2024. The company has already started 2024 strong, with LFL (equivalent) sales up 8.3x. %.
What is B&M’s stock price prediction?
Based on 3 buy, 1 hold and 1 sell recommendations, BME strain It has a “moderate buy” rating. The average price forecast of 492 pence suggests his 5.37% decline in the stock.
Conclusion
In recent years, these companies have reduced their dividend payments due to challenges associated with rising costs, which has had a negative impact on profitability. Analysts still find the stocks attractive to income investors in the UK market.