- Investing in dividend-paying stocks helps investors create a passive income stream and a diversified portfolio.
- Dividend yield is the financial ratio that helps investors analyze whether the payout is sustainable or not.
Investing in dividend-paying stocks allows investors to create a reliable stream of passive income and helps diversify their portfolio. The financial position of companies offering dividends is usually very strong and therefore dividend payments represent the value of a company’s shares.
To create a healthy dividend investing portfolio, investors should first consider a company’s balance sheet, business model, and other valuations. Rising dividends can lead to exponential growth in investors’ portfolios.
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Dividend yield is the financial ratio that helps investors analyze whether the payout is sustainable or not. Its value can be calculated by dividing the annual dividend per share by the share price. Investing in higher yielding stocks can help investors increase their dividend income and strengthen their portfolio. Typically, unhealthy companies that don’t have a proven track record don’t pay dividends, while companies that have a strong financial position are those that reward their shareholders through dividends.
Here are 3 LSE-listed dividend-paying stocks investors can watch in April.
PLC Diversified Energy Company (LON: DEC)
Diversified Energy Company plc, part of the FTSE 250 Index, is an oil and gas producing company. It has given its shareholders a return of 7.53% over the past year to April 1, 2022, while its return stands at 14.41% year-to-date. Diversified Energy Company plc currently offers a dividend yield of 10.6% per annum. With a market capitalization of £1,008.65 million, shares of Diversified Energy Company plc were trading at 119.20 GBX, up 0.51%, at 2:29 p.m. (GMT +1) on April 1, 2022.
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Rio Tinto plc (LON: RIO)
Rio Tinto plc, part of the FTSE 100 index, is a leading metals and mining group. It has given its shareholders a return of 10.70% over the last year to April 1, 2022, while its return stands at 25.67% since the beginning of the year. Rio Tinto plc currently offers a dividend yield of 9.9% per annum. With a market capitalization of £75,964.81 million, shares of Rio Tinto plc were trading at GBX 6,146.00, up 1.07%, at 2:31 p.m. (GMT +1) on April 1, 2022.
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VPC Specialty Lending Investments plc (LON: VSL)
VPC Specialty Lending Investments plc provides investment management and lending services to its clients. It has offered its shareholders a return of 6.92% over the past year to April 1, 2022, but its performance has depreciated this year, with its year-to-date return standing at -3, 03%. VPC Specialty Lending Investments plc currently offers a dividend yield of 8.9% per annum. With a market capitalization of £249.89 million, shares of VPC Specialty Lending Investments plc were trading at 89.60 GBX, down 0.22%, at 2:33 p.m. (GMT +1) on April 1, 2022.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental assessment or technical analysis. Any interest in stocks or sectors should be carefully assessed taking into account the associated risks.