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Many shareholders think that dividend paying stock become someway boring offering low returns over investments compare to small cap stocks for which volatility in their stock prices always brings a kind of excitement to every investors and forcing them to think whether they will be earning some profit or they will having a loss. Dividend Paying stocks are known as much more mature and more predictable.

What I think is well! This is not that boring approach also as it’s quite fascinating when you see your chosen dividend paying stocks are giving you good returns every years and those returns are also increasing every year by dividend growth (%). If you own a stock priced at $100 and if it is giving you dividend at a yield of 5% means you will get per stock $5 and if this stock is giving you a dividend growth of 0.5% means every year dividend will be increasing by this percentage and you will be getting additive dividends every year. Isn’t it really great. I think It’s really great because of the returns you get it can’t be underestimated in any case.

There are many dividend paying stocks in London Stock market which are giving you high dividend yield per year. Some Days ago I read an article which was stating that compaanies was offering dividends at a great yield rate which was distracting the attention from cash and bonds. I took an FTSE 100 comany Imperial Tobacco Group Here in the table below I have tried to show how much dividends they have provided in past and how much they are giving it right now.

2008/9

2009/10

2010/11

2011/12

2012/13

Adjusted EPS

161.8p

178.8p

188.0p

201.0p

210.7p

Dividend per share

73.0p

84.3p

95.1p

105.6p

116.4p

Dividend growth

15.7%

15.5%

12.8%

11.0%

10.2%

You can see in the above table, Imperial Tobacco Group has been continuously increase their dividend amount per share and perhaps many investors have taken benefit from those increase dividend yields every year. Don’t you wanna earn more money.

Related Tags: FTSE Dividend DatesBest UK Dividend Stocks

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