Investment platform AJ Bell forecasts FTSE 100 companies will pay a record £89 billion in dividends this year, marking the largest payouts since 2018 with further growth expected next year. The concept of dividend payouts originated more than 300 years ago when the Dutch East India Company offered annual rewards in nutmeg, cloves, and cash to fund expensive Asian voyages.
Financial column Midas has selected seven top British companies poised to deliver strong income rewards for shareholders. The group includes retirement firm Standard Life, international bank Investec, warehouse owner LondonMetric, real estate giant Landsec, tobacco producer Imperial Brands, medical site owner Primary Health Properties, and flooring manufacturer James Halstead.
Standard Life Retirement Savings and Cash Flow
Standard Life, which trades on the Main market under the ticker SDLF, is the leading player in the UK retirement sector. Today, almost £3.5 trillion is invested in UK retirement products, a figure projected to exceed £6 trillion over the next decade. Midas first recommended the stock in 2022 when it was known as Phoenix Group at £6.61. Shares have since reached £9.23, accompanied by £2.15 in dividend payments.
Brokers forecast a payout of 57p this year for Standard Life, putting the £9.20 shares on a yield of around 6 percent. Chief executive Andy Briggs expects to generate about £500 million in annual excess cash from 2027 after cutting costs and reducing debt. Standard Life holds a 22 percent share of the workplace pensions sector and expects its acquisition of rival Aegon UK to complete by December. Company details are available at standardlifeplc.com.
Investec Banking Operations and Profit Growth
Investec is a FTSE 100 bank valued on the stock market at more than £6 billion. Founded in South Africa in 1974, the company operates globally and maintains a substantial UK presence. The bank runs a 24-hour call centre staffed by graduates and focuses on investment banking, private banking, and financial planning for wealthy clients. Chief executive Fani Titi, who grew up during apartheid in a family of 14 children, has expanded services to include credit cards and savings accounts.
Investec owns 40 percent of UK wealth manager Rathbones. City analysts expect Investec to increase profits from £900 million to £1.2 billion over the next three years. Analysts project dividends of 41.5p for 2027, rising to more than 51p by 2029. Traded on the Main market under ticker INVP, Investec shares stand at £6.62 with a yield exceeding 6 percent. Information is hosted at investec.com.
LondonMetric Property Portfolio and Dividend Targets
LondonMetric chief executive Andrew Jones co-founded the firm in 2012 with a goal to deliver 25 consecutive years of dividend growth. The company paid its initial dividend in 2013 and has increased payments every year since. LondonMetric holds an £8 billion property portfolio generating £430 million in rent, managed by 54 people. Warehouses and distribution hubs make up over half the portfolio, alongside convenience stores, budget hotels, and theme parks such as Alton Towers and Thorpe Park. The firm announced a joint purchase of Picton Property last month.
LondonMetric operates properties on a triple-net basis, leaving tenants responsible for maintenance, insurance, and taxes. Analysts forecast a full-year payout of 12.5p this year, 12.9p next year, and over 14p by 2030. Occupancy across the portfolio stands at 98 percent. Traded on the Main market under ticker LMP, LondonMetric shares trade at £1.98 with a yield of 6.3 percent. Details can be found at londonmetric.com.
Landsec Commercial Property and Rental Income
Landsec was founded in 1944 to rebuild post-war Britain and today holds a property portfolio valued at nearly £11 billion. The portfolio produces annual rents of more than £550 million. Chief executive Mark Allan has shifted focus away from property development toward prime central London offices and major shopping malls, including Bluewater in Kent and Buchanan Galleries in Glasgow. Landsec data shows 30 percent of physical retail sales take place in just 1 percent of UK locations, allowing Landsec retail tenants to increase sales by 22 percent over four years compared to a 3 percent market average.
Landsec reports occupancy at 98 percent, with office lease renewals generating average rent increases of 15 percent, up from 8 percent two years ago. Brokers expect a dividend of more than 42.5p for the year to next March, rising to at least 44p in 2028. Landsec trades on the Main market under ticker LAND. At a share price of £7.25, the stock offers a yield of 5.8 percent. Details are at landsec.com.
Imperial Brands Tobacco and Next Generation Products
Imperial Brands produces tobacco brands including Winston, Gauloises, Golden Virginia, and Rizla rolling papers. Spun out of conglomerate Hanson in 1996, the company increased its dividend almost every year until Covid, resuming growth afterwards. Chief executive Lukas Paravicini manages a business where traditional cigarettes generate over 90 percent of annual sales among more than one billion smokers worldwide, including 30 million in the US and one in three people in Eastern Europe.
Growth at Imperial Brands is led by next-generation products, including Blu vapes, Pulze heated tobacco, Zone nicotine pouches, and Black Buffalo alternative chewing tobacco. Company shares have risen nearly 80 percent to £27.33 over the past five years. Imperial Brands trades on the Main market under ticker IMB with a dividend yield above 6 percent. Corporate details are available at imperialbrandsplc.com.
Primary Health Properties Medical Centres and Yields
Primary Health Properties is a FTSE 250 real estate investment trust that joined the stock market in 1996 and has increased its dividend every year since. The group owns more than 1,000 GP surgeries and medical centres in the UK and Ireland, along with a small number of private hospitals. Modern surgeries provide physiotherapy, podiatry, and minor operations to ease the burden on general hospitals. Occupancy stands at 99 percent across annual rents approaching £350 million, with more than three-quarters of the rent roll government-backed.
First recommended by Midas in 2008 at 70p, Primary Health Properties shares now trade at 96p, having delivered 97p in cumulative dividends over 18 years. Following the takeover of rival Assura last year, borrowings reached almost £4 billion. Chief executive Mark Davies is refinancing debt, cutting costs, and forming institutional partnerships to reduce borrowing. Analysts forecast dividends of 7.3p this year, 7.5p in 2027, and 7.8p in 2028. PHP trades on the Main market under ticker PHP with a yield of 7.6 percent. Information is at phpgroup.co.uk.
James Halstead Flooring Exports and Dividend History
Flooring specialist James Halstead is listed on the Aim market under ticker JHD and holds dividend king status, having delivered 50 consecutive years of dividend growth. Founded in 1915 by James Halstead, the business remains family-backed and is chaired by descendant Mark Halstead. The company invented vinyl flooring in the 1940s and operates factories in Manchester and Teesside, exporting products to 180 countries. Its flooring is used in Ukraine health centres, Polish army bases, American data centres, Dubai operating theatres, Antarctica's Scott Base, nuclear power stations, schools, hospitals, and prisons.
A trading statement last month warned that figures would be lower this year than last year. Brokers expect a 12.5 percent decline in profits to £48 million, but still project an increased dividend of at least 9p. James Halstead shares have fallen from £3.25 to £1.23 over the past four years, placing the stock on a dividend yield of 7.3 percent. Details can be found at jameshalstead.com.
