5 Top Income Stocks Yielding Over 6%: Royal Dutch Shell Plc, Ladbrokes PLC, Games Workshop Group PLC, SSE PLC & LSL Property Services plc

Royal Dutch Shell Plc (LON: RDSB), Ladbrokes PLC (LON: LAD), Games Workshop Group PLC (LON: GAW), Taylor Wimpey plc (LON:TW) and LSL Property Services plc (LON: LSL) all yield more than 6%.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Royal Dutch Shell (LSE: RDSB) is a dividend champion that deserves a place in any portfolio. The company hasn’t cut its dividend since the Second World War and this is unlikely to change any time soon, despite the falling oil price.

At present levels, after falling 10% over the past 12 months, Shell’s shares now support a dividend yield of 6.1%. 

Nevertheless, according to current City forecasts Shell’s earnings are set to fall 31% this year — in line with the falling oil price. However, analysts expect the company’s earnings to rebound by 31% during 2016. The company is currently trading at a forward P/E of 15.4.  

Gambling problem

After a tough 2014, Ladbrokes’ (LSE: LAD) shares have recently fallen to a five-year low. Still, the company has maintained its dividend payout.

Current figures suggest that the company will support a dividend yield of 6.4% this year and analysts expect the payout to rise in line with inflation over the next few years.

Unfortunately, Ladbrokes’ earnings per share are set to fall around 20% this year, although they are expected to rebound by 12% during 2016. Based on these figures, the company is currently trading at a forward P/E of 15.2. 

Dividend champion

Games Workshop (LSE: GAW) has a reputation for being a dividend stalwart. Over the past five years the company’s annual dividend yield has averaged 7.1% and this is set to continue.

Analysts believe that Games Workshop is set to yield 6.2% this year, 6.8% during 2016 and 7.8% during 2017. The company’s dividend payout is set to increase at an inflation busting rate of 10% per annum.

According to current City forecasts, Games Workshop is currently trading at a forward P/E of 13.1 and the dividend is covered 1.2 times by earnings per share. 

Property plays

Taylor Wimpey’s (LSE: TW) profits are surging ahead as the UK property market continues to grow. To reward shareholders, the company is trying to return as much cash to investors as possible.

Indeed, Taylor is planning to issue a special dividend of just under 8p per share this year in addition to the company’s regular payout.

Including the regular payout, Taylor’s shares will support a dividend yield of 6.6% during 2015. Both the special and regular payouts are covered one-and-a-half times by earnings per share, so there’s room for further payout growth. Taylor currently trades at a lowly forward P/E of 10.2. 

LSL Property Services (LSE: LSL) is another property play that’s throwing off cash. During 2014 LSL’s shares supported a dividend yield of 6.9%, which included both a regular and special dividend payout. The company’s regular dividend payout came to 12.3p per share during 2014, while the special payout amounted to 16.5p per share. 

And there could be further special payouts in the cards. Although City analysts expect the company’s dividend yield to fall back to 4.4% for this year, this figure only includes the regular payout. However, the regular payout is covered more than twice by earnings per share, leaving plenty of room for growth. At present LSL trades at a forward P/E of 9.6.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »