The Motley Fool

3 Of The Best Dividends In The FTSE 100: GlaxoSmithKline plc, J Sainsbury plc And Centrica PLC

GlaxoSmithKline

As a provider of pharmaceutical products, GlaxoSmithKline (LSE: GSK) (NYSE: GSK.US) has a high degree of visibility of its future sales and profits. This results in the company being one of the most reliable dividend payers in the FTSE 100.

The Glaxo dividend has been increasing year-on-year for more than ten years. In the last five years, it has been increased at an average rate of 6.9% a year.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Two years of earnings and dividends growth are forecast at Glaxo. Analysts estimate that the company will report a 17.8% increase in earnings per share (EPS) this year, followed by a 10.4% rise in 2014. The dividend is expected to be hiked by 5.1% this year and 5.7% the next.

At today’s share price, that puts Glaxo on a 2014 P/E of 13.6, with an expected yield of 4.7%.

J Sainsbury

As Tesco‘s growth has stalled and Morrisons looks at risk of going into reverse, J Sainsbury (LSE: SBRY) continues to power ahead. In its most recent trading statement, the company confirmed its 34th successive quarter of sales growth.

Over the next two years, profit growth is expected to outstrip dividend growth, helping secure the Sainsbury’s payout.

Analysts have pencilled in 5.4% of earnings growth this year, and 7.5% growth to follow. The dividend is forecast to rise 3.7% this year and 4.0% the next. If these projections come good, then Sainsbury’s is trading on a 2015 P/E of 11.1, with an anticipated yield of 4.8%.

Although there are bigger yields available, there are few better than Sainsbury’s.

Centrica

Centrica (LSE: CNA) is the company behind the British Gas utility brand . Utilities are frequently considered reliable, big dividend payers. Centrica is no exception.

In the last five years, the company has delivered successive annual dividend increases. Dividend growth has outstripped inflation in that time — increases have averaged 7.2% per annum.

Centrica shares today trade on 13.5 times earnings forecasts for 2013. The average FTSE 100 stock trades at 14.1 times.

Centrica’s shares are forecast to yield 4.6% for the year. The average FTSE stock is expected to pay just 3.0%. Dividend cover is around 1.6 times, suggesting that future payouts and increases can be expected.

Our team of analysts here at The Motley Fool believe that they have found an even better income share than any of these three. Their in-depth analysts of this blue-chip dividend opportunity can be found in the Motley Fool report “Power Up Your Portfolio”. This research is 100% free and will be delivered to your inbox immediately. Just click here to start reading today.

> David does not own shares in any of the above companies mentioned above. The Motley Fool owns shares in Tesco.

*the fourth company to qualify is BAE Systems.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US $12.3 TRILLION out of thin air…

And if you click here, we’ll show you something that could be key to unlocking 5G’s full potential...

It’s just ONE innovation from a little-known US company that has quietly spent years preparing for this exact moment…

But you need to get in before the crowd catches onto this ‘sleeping giant’.

Click here to learn more.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.