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When looking for dividend shares to buy, dividend yield is a key financial relationship to consider. For retirees living in their portfolio's income, investing in high performance actions can help them overcome inflation and maintain their desired lifestyle.
However, there is a warning. Shareholders are not guaranteed and the highest yields can be difficult to maintain. The sustainability of dividends is also crucial.
With these considerations in mind, here are three dividend actions that are worth contemplating that offer better yields than the average of 3.6% in everything Ftse 100 stocks.
American British tobacco
Sin stock American British tobacco (LSE: BATS) could raise ethical concerns for some investors. However, its juicy performance of 7.5% should not be ignored lightly.
Combining a low price to profit ratio (p/e) below nine with a consistent dividend growth history, there is a strong investment case for the FTSE 100 cigarette colossus. That is reinforced by the group's commitment to execute a shares of shares of £ 900 million this year.
Granted, invest in tobacco companies entails risks. Less people smoke every year and governments around the world continue to martine the industry with higher taxes and stricter regulations.
However, a return to profitability in the fiscal year24 suggests that American British tobacco is not yet decreasing and outside. In addition, smokeless products now represent 17.5% of total income. That is a testimony of the company's efforts to resist your business in the future.
Average, the company's commitment to the growth of dividends in sterling terms seems credible according to the expectations that £ 50 billion free cash flow by 2030 can generate.
Legal and general
Remain within the FTSE 100, Legal and general (LSE: LGEN) Actions offer a gigantic dividend yield of 8.8%.
The giant of financial services is a long -standing favorite among dividend investors in the United Kingdom. Taking into account that the business aims to deliver £ 5 billion in the next three years in dividends and repurchases of shares, I do not see that change soon.
This objective is backed by a resistant balance. The group's solvency coverage ratio, an important indicator of the financial strength, increased from 224% to 232% in fiscal year 2014, exceeding forecasts. An increase in earnings before taxes of £ 76 million to £ 332 million is another positive sign.
However, the 1.1 -time dividend coverage of the expected profits does not provide much security for investors. A low coverage relationship is not abnormal for legal & general, but it is still a concern.
That said, I am pleased that the group's plans to buy more defense actions, which are often rejected by asset administrators. Amid high geopolitical tensions, the sector could exceed in the coming years, which could increase growth due to the legal and general price of shares.
Victrex
Finally, Specialty Chemicals Company Victrex (LSE: VCT) is a Ftse 250 Dividends that are worth considering. It has a yield of 6.1%.
This firm specializes in the manufacturing view, a high -performance thermoplastic that is often used as an engineering metal substitute. Recently, commercial conditions have been difficult. Consequently, the price of Victrex shares has lost almost half of its value in five years.
Since the business is based on the cyclical demand of the manufacturing industry, it is vulnerable to economic shocks. That is a concern in the middle of Trump's tariff chaos.
However, there are reasons for optimism. A new Chinese factory began commercial production last year, capable of producing 1,500 annual tons of view. China is a critical market for the company, so this could mark a revival in its fortunes.
After a solid performance of the first quarter, it is worth reflecting on the purchase of this dividends stock at a low price.
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