Five top dividend income shares for 2011
Spotting a good dividend paying share is vital for investors looking for income or just plain old good returns.
Dividend shares: What shares could be strong for 2011?
Whether reinvested to buy more shares or used for income that beats savings rates, robust dividends are a powerful tool in the investors' box.
The classic statistic rolled out comes from Barclays Equity Gilt Study, which showed that £100 invested at the end of World War II would have been worth just £5,721 at the end of 2008 in nominal terms. Reinvest the gross dividends and the same £100 would have grown to £92,460.
But when it comes to identifying a good dividend paying share, it's not just as simple as spotting those that yield the highest amount.
The biggest yields can be deceptive, emerging thanks to a company's depressed share price and often unsustainable.
To help sift the wheat from the chaff, Nick Raynor, investment adviser at our share-dealing partner The Share Centre, has highlighted for This is Money five shares investors should consider for income and are anticipated to be top dividend payers for 2011.
He outlines what the company does and why he expects them to perform well next year.
Chesnara
Currently trading at 210p and offering a yield of 7.5% (medium risk).
Chesnara, mainly operates in the UK and engages in underwriting activities associated with death, disability and health.
The strength of the business was confirmed on Friday when the company announced it intends to acquire the Save and Prosper Group for £63.5m, the group is a UK based provider of unit-linked, non-linked and with-profits pension and life assurance products which is closed to new business.
Investors will be interested to know the regulatory surplus of cash stands at 330%, allowing the company to pursue its dividend policy. The yield currently stands at an impressive 7.5%, and we expect this to continue to increase.
Income seekers and investors looking for further takeover opportunities should consider Chesnara.
Reader service: Free brochure guides
Completely free insider guides on the latest investing trends...
Most watched Money videos
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- Alfa Romeo reveals first electric sporty SUV Milano for Alfisti fans
- Mail Online takes a tour of Gatwick's modern EV charging station
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mercedes has finally unveiled its new electric G-Class
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Mini Cooper SE: The British icon gets an all-electric makeover
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Anglo American to restructure operations as it rejects...
- US owner of Boots steps up efforts to find a buyer for...
- Will Nationwide pay out a £100 loyalty bonus again this...
- Digital marketing firm Mission Group snubs takeover offer...
- Currys shares surge after profit guidance upgrade as...
- London estate agent known as Mr Super Prime to star in...
- Anglo strikes out alone - but can it survive a bid...
- Anglo American rejects rival BHP's £34bn second takeover bid
- Police not interested in shoplifting, says M&S as thefts...
- Taxpayer stake in NatWest falls below 27% as Treasury...
- MARKET REPORT: FTSE falters despite UBS call to buy...
- Heathrow takes fresh swipe at the tourist tax as it...
- Cheaper energy deals could be back by winter as Ofgem...
- Car salespeople reveal their insider tips to buy and sell...
- Vodafone boss says 'more needs to be done' in...
- BUSINESS LIVE: UK wage growth higher than forecast; Anglo...
- Virgin Money UK warns of pressure on profits ahead of...
- Gamestop shares double as 'meme stock' social media...