3 FTSE 100 Dividends Lifted This Week: Vodafone Group plc, J Sainsbury plc and Burberry Group plc

Vodafone Group plc (LON: VOD), J Sainsbury plc (LON: SBRY) and Burberry Group plc (LON: BRBY) all flash the cash.

| 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.

The FTSE 100 (FTSEINDICES: ^FTSE) has been erratic this week, with fears of US economic stimulus withdrawal ebbing and flowing from day to day. By early afternoon it’s 28 points up on the day to 6,694, and it’s anybody’s guess whether it will beat last Friday’s close of 6,708 points.

Long-term shareholders won’t really care, and will be basing their strategy partly on income and looking for dividends that beat the FTSE’s 3.1% average. Here are three that raised their dividends this week:

Vodafone

If was first-half results time for Vodafone Group (LSE: VOD) (NASDAQ: VOD.US) on 12 November, and many eyes will have been peeled for its dividend announcement after the telecoms giant downgraded its dividend targets to “at least match” the previous year’s.

What we saw was an encouraging 8% rise to 3.53p per share, after Vodafone reported adjusted earnings per share (EPS) of 7.85p. That’s only about a third of the forecast 10.4p for the full year, but it does at least suggest there’ll be a decent overall increase — an 8% hike to the year-end payment would provide a total of 11p per share, for a yield of 4.7% on the current share price of 234p.

J Sainsbury

J Sainsbury (LSE: SBRY) raised its first-half dividend on 13 November, by 4.2% to 5p per share, after reporting a strong set of results.

Total sales for the period rose 4.4% with like-for-like up 1.4%, leading to a 7% rise in underlying pre-tax profit to £400m and a 9.2% EPS boost to 16.6p. Crucially, Sainsbury gained market share on its biggest rival Tesco, capturing 16.8% of the UK groceries market.

For the full year, there’s a dividend yield of 4.4% on the cards with the share price standing at 410p.

Burberry

Burberry Group (LSE: BRBY) shares have fallen back from their 2013 peak and now stand at 1,465p. But that’s still about 25% up over 12 months, and the fashion firm is set to deliver yet another full-year dividend rise — at least going on interim results, reported on 14 November.

With revenue up 17% to £1,031m and adjusted pre-tax profit marginally up to £174m (but ahead of expectations), the halftime dividend was lifted 10% to 8.8p per share. The current consensus suggests a full-year yield of a modest 2.1%, but it would be well covered by earnings.

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.

> Alan does not own shares in any of the companies mentioned.

More on Investing Articles

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

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

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »