What This Top Dividend Portfolio Is Holding Now: Vodafone Group plc, British American Tobacco plc And AstraZeneca plc

Vodafone Group plc (LON:VOD), British American Tobacco plc (LON:BATS) and AstraZeneca plc (LON:AZN) are top dividend picks of JP Morgan Claverhouse Investment Trust (LON:JCH).

| More on:

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.

JP Morgan Claverhouse IT (LSE: JCH) extended its dividend record to 42 consecutive years of increases when it announced its annual results last month. At a current share price of 620p, the trust is on a trailing yield of 3.2%.

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

Among its largest holdings, the trust has overweight positions in Vodafone (LSE: VOD) (NASDAQ: VOD.US), British American Tobacco (LSE: BATS) and AstraZeneca (LSE: AZN) (NYSE: AZN.US).

Vodafone

Mobile giant Vodafone is working hard to replenish lost earnings after selling its stake in US phones firm Verizon Wireless for £84bn last year. In a trading update in February, the company reported improving revenue trends in most of its major markets, and good progress on its massive Project Spring investment programme and the integration of cable acquisitions in Germany and Spain.

Although it will be some years before earnings get back to previous levels, Vodafone is committed to paying an increasing dividend in the meantime. Analysts expect to see an 11.5p a share payout when the company announces its results for the financial year ended 31 March, giving a juicy 5% yield at a current share price of 228p.

British American Tobacco

British American Tobacco lifted its dividend by 4% for the year ended 31 December 2014 when it announced its annual results in February. The company said it expects the trading environment to remain difficult during 2015, with foreign exchange headwinds continuing to impact the business. Nevertheless, the Board said it is confident “we will deliver value to our shareholders in the short and long term”.

Analysts are forecasting another 4% increase in the dividend this year to around 154p, giving a yield of 4.1% at a current share price of 3,750p.

AstraZeneca

AstraZeneca has been through three years of falling earnings, largely as a result of expiring patents on a number of its top-selling drugs. Nevertheless, the company has been able to maintain its dividend at 280¢ a share. The good news is that the pipeline of new drugs has gone from strength to strength since Pascal Soriot came in as chief executive at the back-end of 2012.

Analysts don’t expect the pipeline to translate into a big pick-up in earnings just yet, and the consensus is for the dividend to again be held at 280¢ this year. However, at current exchange rates that translates to around 187p (compared with 178p last year), giving an above-market-average yield of 3.9%. Furthermore, there’s potential for the payout to grow strongly in the not-too-distant future.

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 has no position in any shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Investing Articles

Here’s how I’d follow Warren Buffett to start building passive income in 2025

Ben McPoland highlights one FTSE 250 firm with a strong competitive edge that he thinks can continue rewarding investors with…

Read more »

Investing Articles

Burberry shares: undervalued FTSE gems that are ready to rocket?

Burberry shares soared at the beginning of the week as the takeover rumour mill went into overdrive. Is Paul Summers…

Read more »

US Stock

Here are the latest share price forecasts for S&P 500 giant Amazon

Amazon has generated monster gains for investors over the last decade. And Wall Street analysts believe the S&P 500 stock…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

2 high-yield FTSE 250 shares I’d buy today — and 1 that I’d avoid

UK markets have felt some volatility after last week’s Budget and the FTSE 250 was no stranger to it. Our…

Read more »

Investing Articles

3 reasons the Rolls-Royce share price could soar over the next decade

Sustainable aviation fuel, narrow-body aircraft, and small nuclear reactors could all keep the Rolls-Royce share price climbing over the next…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

Here’s how much income I’d get if I invested my entire £20k ISA in cheap BT shares

BT shares are on the up but still cheap, while the FTSE 100 telecoms stock offers a good yield too.…

Read more »

Investing Articles

2 FTSE dividend shares yielding more than 6% with P/Es of less than 9!

Harvey Jones picks out two brilliant FTSE 100 dividend shares that yield more than 6% but are selling at strangely…

Read more »

Investing Articles

Up 105% in a year! Is this rocketing FTSE bank the perfect pick for my Stocks and Shares ISA?

Harvey Jones is drawing up a shortlist of stocks to purchase inside his Stocks and Shares ISA allowance. This FTSE…

Read more »