5 Top Dividend Stocks to Watch in 2021

by Scarlett S. Stock Market Analyst

Smart and progressive investors are always looking forward to dividend stocks for supplementing their income and boosting their finances. In this article, we would put our lens through 5 dividend stocks that should be keenly watched in 2021 based on their recent performance and fundamental strength.

BT Group Plc

UK’s leading telecom player BT Group Plc (LON: BT. A) is expected to spearhead the 5G rollout to rural households across the UK. When the chips were down, during the first peak of Covid-19 cases, the FTSE 100 telecom giant slashed its dividend pay-out and channelised the proceeds to invest in 5G technology. The stock has seen a huge price correction and seems to be trading near its intrinsic value. The stock has a dividend yield of 11.4 per cent.

Evraz Plc

FTSE 100 listed global miner Evraz Plc (LON: EVR) specialises in coal, steel, and iron. The company’s performance was resilient throughout the recent quarters, which is also reflected in their stock price movement. The shares have delivered a price return of more than 16 per cent in a year’s time. The stock has a dividend yield of 9.6 per cent.

(Image source: ©Kalkine Group 2020)

BP Plc

Global energy giant BP Plc (LON: BP.) has been working relentlessly towards reducing the carbon footprint by 2050. The company is extensively developing solutions to produce hydrogen from renewable sources of energy. The stock has witnessed enough price correction and seems to be trading near its intrinsic value. The stock has a present dividend yield of 9.4 per cent.

Imperial Brands Plc

FTSE 100 listed fast-moving consumer goods company Imperial Brands Plc’s (LON: IMB) adjusted revenue increased by 0.8 per cent to £7,985 million during the fiscal year 2020, primarily driven by organic growth in the tobacco segment. The company declared an annual dividend per share of 137.7 pence. The stock has witnessed strong price correction and seems to be trading near its intrinsic value. The stock has a current dividend yield of 8.8 per cent.

British American Tobacco Plc

Leading tobacco and nicotine products company British American Tobacco Plc (LON: BATS) is likely to witness revenue growth in the second half of 2020. Backed by strong finance, the company has maintained a dividend pay-out ratio of 65 per cent of the adjusted diluted earnings per share. The stock has witnessed enough price correction and seems to be trading near its intrinsic value. The stock has a current dividend yield of 7.6 per cent.