Go-Ahead Group is one of the top dividend stocks I think are worth considering today. Dividend stocks are a great way to hedge your portfolio as they provide both steady income and cushion against market risks. Dividends can be underrated but they form a large part of investment returns, playing an important role in compounding returns in the long run. Today I will share with you my best paying dividend shares you should be considering for your portfolio.
The Go-Ahead Group plc (LSE:GOG)
The Go-Ahead Group plc provides bus and rail passenger transportation services in the United Kingdom and Singapore. Founded in 1987, and currently run by David Brown, the company provides employment to 29,000 people and with the stock’s market cap sitting at GBP £641.89M, it comes under the small-cap stocks category.
GOG has an appealing dividend yield of 6.84% and the company currently pays out 49.15% of its profits as dividends , and analysts are expecting a 59.71% payout ratio in the next three years. Despite there being some hiccups, dividends per share have increased during the past 10 years. It should comfort potential investors that the company isn’t expensive when we look at its PE ratio compared to the Global Transportation industry. Go-Ahead Group’s PE ratio is 7.2 while its industry average is 21.4.
Primary Health Properties Plc (LSE:PHP)
Primary Health Properties PLC (“PHP”) is a UK Real Estate Investment Trust (“REIT”) and the leading investor in modern primary healthcare premises. The company was established in 1995 and with the company’s market cap sitting at GBP £709.50M, it falls under the small-cap group.
PHP has a sumptuous dividend yield of 4.52% and the company has a payout ratio of 49.62% , with analysts expecting this ratio in three years to be 93.83%. PHP’s dividends have increased in the last 10 years, with DPS increasing from £0.04 to £0.05. To the enjoyment of shareholders, the company hasn’t missed a payment during this period.
Telecom Plus PLC (LSE:TEP)
Telecom Plus PLC provides a range of utility services to residential and small business customers in the United Kingdom. Formed in 1996, and currently headed by CEO Andrew Lindsay, the company now has 1,066 employees and with the company’s market cap sitting at GBP £945.28M, it falls under the small-cap category.
TEP has a wholesome dividend yield of 3.99% and is paying out 125.59% of profits as dividends . The company’s DPS has increased from £0.1 to £0.48 over the last 10 years. During this period, they haven’t missed a payment, as one would expect from a company increasing their dividend. Over the next three years, analysts predict double digit earnings growth for Telecom Plus of 57.93%.