Investors looking for steady incomes and growth in their investments often turn to dividend-paying stocks with strong balance sheets and high yields. In the second quarter of 2024, some of the top-performing dividend stocks in the UK included companies like Hargreaves Lansdown, CMC Markets UK, and Britvic.
To identify the best-performing income-focused stocks, we screened the Morningstar UK Index, which tracks the performance of the UK’s regional markets. The top 10 stocks had a forward dividend yield of at least 1.5% and excluded real estate investment trusts.
The Morningstar UK Dividend Yield Focus Index, which follows high-quality, dividend-paying stocks in the UK, saw a 2.8% increase over the past month and a 10.0% rise over the past year. In comparison, the overall UK stock market, as measured by the Morningstar UK Index, gained 3.7% in the quarter and 13.0% in the year.
Some of the best-performing dividend stocks in the second quarter of 2024 included Hargreaves Lansdown, CMC Markets UK, Britvic, Anglo American, BT, AJ Bell, IntegraFin, Plus500, QinetiQ, and Keller Group. These stocks showed impressive growth and dividend yields, providing investors with opportunities for income and capital appreciation.
Investors interested in exploring more top-performing dividend stocks can review the Morningstar UK Dividend Yield Focus Index, analyze the latest dividend moves among FTSE 100 companies, use the Morningstar Screener tool, and leverage the Morningstar Portfolio Manager to track their investments. Understanding factors like valuations, economic moats, and competitive advantages can also help investors make informed decisions when selecting dividend stocks.
Overall, dividend-paying stocks can offer a reliable source of income, protection against market downturns, and potential for growth, making them a valuable addition to any investment portfolio.