What This Top Dividend Portfolio Is Holding Now: HSBC Holdings plc, BHP Billiton plc, and Unilever plc

HSBC Holdings plc (LON:HSBC), BHP Billiton plc (LON:BLT) and Unilever plc (LON:ULVR) are favoured stocks of Murray Income Trust plc (LON:MUT).

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.

Murray Income Trust (LSE: MUT) increased its last full-year dividend by 3.4% to record 30 consecutive years of annual growth. At a recent share price of 768p the trailing yield is 4%.

Picking great dividend shares has helped the trust outperform the FTSE All-Share Index over the past three, five and 10 years.

Murray Income has recently been adding to HSBC (LSE: HSBA) (NYSE: HSBC.US), BHP Billiton (LSE: BLT) and Unilever (LSE: ULVR). Concerns over the emerging markets exposure of these companies has led to share price weakness, but the trust believes that the long term outlook for their end-markets remains bright.

Unilever

Unilever is famed for its exposure to emerging markets, which contribute 57% (and rising)  to group revenue.

The consumer goods giant spooked investors last September, with an unscheduled trading update warning of “weakening in the market growth of many emerging countries in quarter three”. Nevertheless, by the end of the year, management was able to report underlying sales growth in emerging markets of 8.7%, helping the group to overall growth of 4.3%.

Unilever’s shares are off their 52-week lows, but still some 17% below their 2,885p high of last May. Analyst dividend forecasts for the current year give a yield of 3.9%, comfortably above the FTSE 100 average of 3.2%.

BHP Billiton

The amount of metal-bearing rock, coal, and oil and gas that BHP Billiton extracts every day is mind-boggling. The Asia-Pacific region — and China in particular — is the company’s biggest market.

After a couple of weak years for miners, BHP Billiton posted a 31% rise in underlying profit in its interim results last month. Analysts expect that broadly to carry through for the company’s fiscal year to 30 June. In the longer term, management is confident that, “the fundamentals of wealth creation and urbanisation should benefit general commodities demand”.

BHP Billiton’s shares are currently nearer the bottom of their 52-week trading range than the top. Analyst dividend forecasts give a nice yield of 4.2%.

HSBC

Well over half of HSBC’s income comes from outside of Europe and North America — from higher-growth markets stretching from Asia-Pacific to Latin America.

In its annual results, released last month, HSBC noted the sharp sell-off in some emerging markets, but stressed that emerging markets are not a generic category: “The countries most affected have two common themes, large current account deficits and the uncertain outcomes arising from elections within a year”.

HSBC said it remains optimistic about longer-term prospects, and the opportunities presented by the bank’s positioning for an anticipated material expansion in South-South trade and capital flows. At the time of writing, the company’s shares are close to a 52-week low of 592p — down some 23% from their highs of last May. Analyst dividend forecasts give a juicy yield of 5.5%.

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.

G A Chester does not own any shares mentioned in this article. The Motley Fool owns shares in Unilever.

More on Investing Articles

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

The market is wrong about this FTSE 250 stock. I’m buying it in April

Stephen Wright thinks investors should look past a 49% decline in earnings per share and consider investing in a FTSE…

Read more »

Black father and two young daughters dancing at home
Investing Articles

1 FTSE 250 stock I own, and 1 I’d love to buy

Our writer explains why she’s eyeing up this FTSE 250 growth phenomenon, and may buy more shares in this property…

Read more »

View of Tower Bridge in Autumn
Investing Articles

The FTSE 100 is closing in on 8,000 points! Here’s what I’m buying before it’s too late!

As the FTSE 100 keeps gaining momentum, this Fool is on the lookout for bargains. Here's one stock he'd willingly…

Read more »

Investing Articles

3 ideas to help investors aim for a million-pound Stocks & Shares ISA

The UK has a growing number of Stocks and Shares ISA millionaires, and this plan may be one of the…

Read more »

Illustration of flames over a black background
Investing Articles

2 red-hot UK growth stocks to consider buying in April

These two growth stocks are performing well, but can they continue to deliver for investors through 2024 and beyond?

Read more »

Charticle

Is JD Sports Fashion one of the FTSE 100’s best value stocks? Here’s what the charts say!

The JD Sports Fashion share price remains a wild ride during the first quarter. Could it be one of the…

Read more »

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 »