In today’s article, we will have a closer look at two of the famous dividend stocks, M&G PLC (GB:MNG) and Barclays PLC (GB:BARC), from the FTSE 100 index of the UK market. M&G boasts a dividend yield exceeding 10%, while Barclays exhibits a dividend yield of nearly 5%.
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In terms of capital growth, analysts have rated BARC stock as Moderate Buy with a potential upside of more than 50%. On the other hand, MNG received a Hold rating with a moderate growth potential of 12.6%.
Let’s take a look at these two stocks in detail.
M&G’s Dividend History
M&G operates as an investment management company that provides a wide array of options catering to long-term savings, investments, and asset management needs.
M&G currently has the highest dividend yield of 10.32% on the FTSE 100 index. Over the last three years, there has been a noteworthy 7.5% increase in the dividend, a positive trend that aligns with the robust business performance. In 2022, the company paid total dividends of 19.6p per share. In 2023, analysts predict that the cumulative dividend payments for the full year will experience a slight uptick to 19.7p. For 2024, the dividend projections are expected to reach 19.87p.
Considering the fundamentals, M&G can align with the projected dividends. With a strong brand, a history of superior performance across its funds, and extensive expertise spanning various industries and asset classes, the company is well-positioned for success.
Are MNG Shares a Good Buy?
According to TipRanks, MNG stock has received a Hold rating based on three Hold, two Sell, and one Buy recommendations from analysts. The M&G share price prediction is 214.59p, which is 12.6% above the current trading levels.
What is the Latest Barclays Dividend?
Barclays is among the top four banks in the UK, serving around 48 million customers worldwide.
The bank announced an interim dividend of 2.7p per share for 2023, which will be payable on September 15. This was higher than the interim payment of 2.25p paid a year ago. In 2022, Barclays paid an annual dividend of 5.0 per share.
Moving ahead, as interest rates experience an upward trend, analysts are growing more optimistic about the bank’s future dividends. Analysts predict that the bank will distribute a dividend amounting to 8.6p per share in 2023, followed by an increase to 9.7p per share in 2024.
Are Barclays Shares a Good Buy Now?
BARC stock has a Moderate Buy rating on TipRanks, backed by a total of 10 recommendations from analysts, of which seven are Buy. Analysts are highly bullish on the Barclays share price and predict growth of 55.7% at a price target of 230.0p.
Conclusion
Considering that the FTSE 100’s average dividend yield is only 3.9%, stocks such as MNG and BARC present notable returns for investors. The stability of their future dividends positions them as viable choices for investors in search of income.
