3 FTSE Dividends Lifted This Week

Published in Investing on 2 November 2012

Imperial Tobacco (LSE: IMT), BP (LSE: BP) and BT (LSE: BT.A) all boost their payouts.

The FTSE 100 (UKX) is dithering a few points either side of yesterday's close, and is four points down on 5,858 points at the time of writing. Barring a dramatic afternoon, it looks likely to close this week a little up on last week.

We've had a few companies that have beaten the FTSE this week, and they have also increased their dividends. Here are three that are rewarding shareholders...

Imperial Tobacco

Imperial Tobacco (LSE: IMT) boosted its full-year dividend by a very nice 11% to 105.6p per share this week, giving shareholders a yield of 4.4% based on the current share price of 2,381p. And it's nicely covered as well, by earnings per share of 201p.

Imperial is one of the few companies that was pretty much unaffected by the banking crisis and the recession, and has steadily grown its earnings and dividend payouts year after year.


BP (LSE: BP) (NYSE: BP.US) further indicated its return to health by lifting its third-quarter dividend by 12.5% to nine cents per share on Tuesday. Prior to the release of Q3 figures, City analysts had been forecasting a full-year dividend of 20p per share, but that could well be revised upwards now -- we await new forecasts.

A payout of 20p would provide a 4.5% yield on the shares at 444p, and though BP does need to plough a lot of its earnings back into future development, it should still be decently covered.


BT Group (LSE: BT-A) (NYSE: BT.US) topped both of these, in percentage terms at least, with a 15% rise in its half-time dividend, offering a payout of 3p per share -- from a period that brought an 8% rise in earnings.

BT's dividends are weighted towards the second half, and the telecoms giant could well be on to meet analysts' expectations of a full-year payout of around 4.2%.

Companies paying strong and rising dividends like these are just what Neil Woodford, who regularly beats the FTSE, looks for. The Motley Fool report 8 Shares Held By Britain's Super Investor could help you to emulate his success. Click here for your free copy.

These companies also form the cornerstones of many a million-pound portfolio, and we'd all like to accumulate one of those, wouldn't we? This Motley Fool report takes a look at how make big money from shares. Click here to get your free copy now.

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

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