3 FTSE Dividends Lifted This Week

Published in Investing on 25 July 2012

Renishaw (LSE: RSW) and British American Tobacco (LSE: BATS) both lift their dividends today.

The FTSE 100 (UKX) is dead in the water at the moment, just 11 points up on 5,511 by mid-morning, as the deepening euro debt crisis is taking the shine of some good results from UK companies.

In such times, sensible investors turn to shares paying high and rising dividends, and we look at three that have increased their payouts this week...

Renishaw

Who says engineering is dead? Renishaw (LSE: RSW) lifted its full year dividend by 10% to 35p per share after releasing full year results to June 30th on Wednesday. That’s a yield of 2.8%, which is not one of the highest on the market, but it has been growing steadily in recent years.

The share price did nicely too, putting on 82p (6.5%) to 1,346p after the high tech engineer reported a 5% boost to annual pre-tax profits, from a 15% rise in revenues. Forecasts for next year are looking good, with a dividend of around 40p expected.

British American Tobacco

One of Neil Woodford’s favourites, British American Tobacco (LSE: BATS), also raised its dividend on Wednesday, but this time it was an interim payout -- up 11% to 42.2p per share. Revenue for the six months to June 30th was pretty flat, but adjusted operational profit rose by 3% to £2.8bn, with adjusted earnings per share up 7% to 102.4p.

Though the price fell, by 40p (1.2%) to 3,268p, the dividend is still very well covered, and if we see a final dividend raised by the same 11%, we’ll be looking at 140p, for a yield of 4.3%.

Pace

Pay TV technology specialist Pace (LSE: PIC) released interim figures on Tuesday, which saw its half time dividend boosted by 15% to 1.44c per share. Though the first half suffered from the hard disk shortage caused by Thailand’s floods, and pre-tax profit fell to $21.4m from $29.4m, Pace lifted its guidance for the full year.

A similar rise in the full year payout would give shareholders a yield of 2% on the current 133p share price.

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> Alan does not own any shares mentioned in this article.

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