First up is none other than dividend stalwartBritish American Tobacco(LSE: BATS). British American has one of the best dividend records for any FTSE 100 company and this is unlikely to change any time soon.
At present levels, the companys shares support a dividend yield of 4.2% and the payout is covered one-and-a-half times by earnings per share. British American currently trades at a forward P/E of 17.8 and a 2016 P/E of 16.6. The companys dividend yield is set to hit 4.3% next year.
Tate & Lyle(LSE: TATE) is the next contender. Tate is the FTSE 100s oldest constituent the company has been in the index since it was first conceived in 1935. The companys shares currently support a dividend yield of 4.4% and the payout is set to rise in line with inflation for the next two years.
At present, Tate is trading at a forward P/E of 17.5 and 2016 P/E of 16.3. The payout is covered twice by earnings per share. Tates earnings are set to expand at a high single-digit percentage for the next three years as the company benefits from an increasing demand for its Stevia sweetener.
Gaming companyGVC(LSE: GVC) has a reputation for rewarding shareholders. The companys shares have supported an annual yield of between 16% and 8% per annum over the past five years. On a total return basis, if you had invested 100 in GVC five years ago, you would now be sitting on a return of 70% from dividends alone. Over the same period, GVCs share price has tripled.
At present, GVC is trading at a forward P/E of 9 and analysts believe that the companys shares will support a dividend yield of 8.6% this year. Whats more, the companys yield is set to hit 9.9% during 2016.
MinerVedanta(LSE: VED) isnt what youd usually call a great income stock. The companys share price has collapsed by more than 80% over the past five years, as falling commodity prices have taken their toll on the company.
However, Vedantas management recently came out and told investors that maintaining the companys dividend payout at its present level is a top priority for the group.
Vedanta currently supports a yield of 7.5%, although as the company is expected to report a loss for the next two years, the payout will be made from the companys cash balance. Vedantas yield is set to hit 8.1% during 2016.
Utilitiesare famous for their defensive nature andSSE(LSE: SSE) is no different. One of the biggest utility companies in the UK, SSE isnt going to go out of business any time soon and the same can be said for the companys dividend.
SSEs management has sated its commitment to the companys dividend and will increase the payout in line with inflation for the next three years. SSE currently yields 5.7% and the payout is covered one-and-a-half times by earnings per share.
Next year, SSEs yield is projected to hit 5.9%, although the payout cover will drop slightly to 1.2. The company currently trades at a forward P/E of 12.8.
Plenty of opportunity
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