Best British dividend stocks to consider buying in June

We asked our writers to share their top dividend stock for June, including a Share Advisor ‘Ice’ recommendation!

| 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.

A beach at sunset where there is an inscription on the sand "Breathe Deeeply".

Image source: Getty Images

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.

Every month, we ask our freelance writers to share their top ideas for dividend stocks with you — here’s what they said for June!

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

IG Group

What it does: IG Group is a global fintech company providing online trading platforms and related educational resources.

Should you invest £1,000 in M&G right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if M&G made the list?

See the 6 stocks

Created with Highcharts 11.4.3IG Group Holdings PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Kevin Godbold. The dividend record for IG Group (LSE: IGG) is stable with zero cuts since at least as far back as 2018. The company even maintained the pay-out through the pandemic. Meanwhile, the compound annual growth rate (CAGR) of the dividend is running at about 0.91%.

With the shares near 802p (20 May), the forward-looking yield is just under 6% for the trading year to May 2025.

The firm has been diversifying and expanding its operations. However, the performance of the business tends to improve with market volatility — when people often trade the markets more. So, there’s some cyclical risk here for shareholders.

Nevertheless, in March the company reported stable revenue year on year, “despite the lowest level of volatility in over five years”.

The trading and financial stability of the enterprise is encouraging, and I’d consider the stock for inclusion in a diversified portfolio of dividend shares.

Kevin Godbold does not own shares in IG Group.

ITV

What it does: ITV is the UK’s largest commercial broadcaster. It also operates a programme production business, ITV Studios.

Created with Highcharts 11.4.3ITV PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Roland Head. ITV (LSE: ITV) has been out of favour with investors for a long time, but I think the tide is starting to turn.

After a tough slump in advertising last year, ITV recently reported a 3% increase in first-quarter ad revenue. Management expects a 12% increase during the second quarter, helped by EURO 2024 football.

ITV also revealed that it has erased the deficit on its large pension scheme, which is now in surplus. No more extra cash contributions are needed, removing a big drag on cash flow.

The risk is that ITV remains a legacy business that’s not big enough to compete with the big streamers.

Personally, I don’t buy this view. ITV has a 33% share of commercial broadcast viewing in the UK and also makes programmes for the big streamers, including in the US.

I think ITV’s dividend now looks safe, giving a 6.4% yield with the potential for growth.

Roland Head owns shares in ITV.

What it does: Legal & General offers retirement, wealth, insurance, investment management and capital investment solutions.

Created with Highcharts 11.4.3Legal & General Group Plc PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

By Andrew Mackie. A recent uptick in the Legal & General share price (LSE:LGEN) means that the dividend yield is not quite as attractive as it was a month ago. However, with a forward yield of 8.4%, I continue to accumulate shares in the company on a regular basis.

The key to dividend investing is sustainability. Between 2020-2023, net capital surplus generation has been £800m higher than total dividends payouts. It comfortably expects this trend to continue in  FY24. Over the longer term, I remain confident that shareholder returns will remain a key tenet of its strategy.

One of the most exciting growth areas for the business is pension risk transfer (PRT). Companies turn to L&G to derisk their defined benefit pension plans. It estimates that only 10% of such pension liabilities have been transacted on to date.

A key risk for the business today remains interest rates. The longer rates remain elevated, the greater the risk that the value of its vast property and bond portfolios get re-rated, thereby impacting profitability. But I take a long term view when investing, and I remain confident in its ability to weather any economic downturn, just like it has done multiple times in the past.

Andrew Mackie owns shares in Legal & General.

Tritax EuroBox

What it does: Tritax EuroBox invests in and manages logistics real estate in Continental Europe.

By Paul Summers: So long as I’m willing to take on (arguably) more risk, I think the dividend stream from warehouse owner and manager Tritax EuroBox (LSE: EBOX) looks very attractive.

The forecast yield currently stands at 7.2%. There aren’t many stocks offering more in the UK market.

While income is the primary focus here, I’m also positive about this real estate investment trust’s ability to deliver a nice capital gain in time, given the high likelihood that online shopping will continue growing in popularity. This means more demand from retailers to rent the sort of ‘big boxes’ it owns.

My chief concern is how long we must wait for interest rate cuts to arrive. Like anything property-related, Eurobox shares have been out of fashion in recent years and I imagine many of its investors are growing impatient.

Staying diversified remains vital, in my view.

Paul Summers has no position in Tritax EuroBox

5 Shares for the Future of Energy

Investors who don’t own energy shares need to see this now.

Because Mark Rogers — The Motley Fool UK’s Director of Investing — sees 2 key reasons why energy is set to soar.

While sanctions slam Russian supplies, nations are also racing to achieve net zero emissions, he says. Mark believes 5 companies in particular are poised for spectacular profits.

Open this new report5 Shares for the Future of Energy — and discover:

  • Britain’s Energy Fort Knox, now controlling 30% of UK energy storage
  • How to potentially get paid by the weather
  • Electric Vehicles’ secret backdoor opportunity
  • One dead simple stock for the new nuclear boom

Click the button below to find out how you can get your hands on the full report now, and as a thank you for your interest, we’ll send you one of the five picks — absolutely free!

Grab your FREE Energy recommendation now

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.

The Motley Fool UK has recommended ITV. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

2 defensive US growth stocks to consider even as the S&P 500 slides

With trade tariffs causing global market mayhem, risk-averse investors may want to consider shifting into defensive US growth stocks.

Read more »

Investing Articles

As Trump’s tariffs sink the FTSE 100, I’m following Warren Buffett’s advice and shopping for bargains

With the FTSE 100 now officially in a correction period, Andrew Mackie's not sitting on cash waiting to see where…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Investing Articles

2 reasons why this stock market crash isn’t a repeat of 2020

When the stock market crashed during the Covid-19 pandemic, the recovery was rapid and spectacular. Could the same thing happen…

Read more »

Investing Articles

Car-mageddon! The Aston Martin share price has tanked 30% in a month

Our writer looks at the performance of the Aston Martin share price over the past few weeks and considers whether…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Investing For Beginners

I was right about the UK stock impact from the tariff news. Here’s what I think happens next

Jon Smith explains why he warned about the impact of the tariffs on UK stocks and why more short-term pain…

Read more »

Investing Articles

Looking for penny shares? Here’s one I think looks like a terrific bargain to consider!

I think this penny share -- which has almost doubled in value over the last year -- is one of…

Read more »

Investing For Beginners

Why I’m staying away from the Barclays share price even with a 19% drop

Jon Smith explains why he's cautious right now about the Barclays share price, with the potential for lower revenues from…

Read more »

Investing Articles

2 FTSE 100 and FTSE 250 stocks to consider as stock markets plummet!

Looking for lifeboats as growth-crushing trade tariffs loom? Here are two (including a FTSE 100 gold stock) I think merit…

Read more »