Pennon 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. A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. Here are other similar dividend stocks that could be valuable additions to your current holdings.
Pennon Group Plc (LSE:PNN)
Pennon Group Plc engages in the environmental infrastructure businesses worldwide. Established in 1989, and currently run by Christopher Loughlin, the company size now stands at 5,000 people and with the market cap of GBP £3.25B, it falls under the mid-cap category.
PNN has an appealing dividend yield of 4.64% and their payout ratio stands at 83.88% . PNN’s DPS have risen to £0.36 from £0.19 over a 10 year period. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period.
Meggitt PLC (LSE:MGGT)
Meggitt PLC designs and manufactures components and sub-systems for aerospace, defense, energy, medical, industrial, test, and automotive markets in the United Kingdom, rest of Europe, the United States, and internationally. Formed in 1947, and currently lead by Stephen Young, the company provides employment to 11,210 people and with the company’s market cap sitting at GBP £3.75B, it falls under the mid-cap stocks category.
MGGT has a sizeable dividend yield of 3.08% and their current payout ratio is 40.33% , and analysts are expecting the payout ratio in three years to hit 44.60%. In the last 10 years, shareholders would have been happy to see the company increase its dividend from £0.08 to £0.15. They have been reliable as well, ensuring that shareholders haven’t missed a payment during this 10 year period. Meggitt’s earnings per share growth of 146.69% over the past 12 months outpaced the gb aerospace and defense industry’s average growth rate of 30.88%.
Severn Trent Plc (LSE:SVT)
Severn Trent Plc operates as a water and sewerage company in the United Kingdom, the United States, and internationally. Started in 1974, and run by CEO Olivia Garfield, the company size now stands at 7,622 people and with the market cap of GBP £4.99B, it falls under the mid-cap category.
SVT has an appealing dividend yield of 4.04% and their payout ratio stands at 67.28% , with analysts expecting this ratio to be 71.69% in the next three years. SVT’s dividends have increased in the last 10 years, with DPS increasing from £0.63 to £0.87. They have been dependable too, not missing a single payment in this time. The company has averaged a positive annual earnings growth rate of over the past five years.