Royal Dutch Shell(LSE: RDSB) is a dividend champion that deserves a place in any portfolio. The company hasnt cut its dividend since the Second World War and this is unlikely to change any time soon, despite the falling oil price.
At present levels, after falling10% over the past 12 months, Shells shares now support a dividend yield of 6.1%.
Nevertheless, according to current City forecasts Shells earnings are set to fall 31% this year in line with the falling oil price. However, analysts expect the companys earnings to rebound by 31% during 2016. The company is currently trading at a forward P/E of 15.4.
After a tough 2014,Ladbrokes(LSE: LAD) shares have recently fallen to a five-year low. Still, the company has maintained its dividend payout.
Current figures suggest that the company will support a dividend yield of 6.4% this year and analysts expect the payout to rise in line with inflation over the next few years.
Unfortunately, Ladbrokes earnings per share are set to fall around 20% this year, although they are expected to rebound by 12% during 2016. Based on these figures, the company is currently trading at a forward P/E of 15.2.
Games Workshop(LSE: GAW) has a reputation for being a dividend stalwart. Over the past five years the companys annual dividend yield has averaged 7.1% and this is set to continue.
Analysts believe that Games Workshop is set to yield 6.2% this year, 6.8% during 2016 and 7.8% during 2017. The companys dividend payout is set to increase at an inflation busting rate of 10% per annum.
According to current City forecasts, Games Workshop is currently trading at a forward P/E of 13.1 and the dividend is covered 1.2 times by earnings per share.
Taylor Wimpeys(LSE: TW) profits are surging ahead as the UK property market continues to grow. To reward shareholders, the company is trying to return as much cash to investors as possible.
Indeed, Taylor is planning to issue a special dividend of just under 8p per share this year in addition to the companys regular payout.
Including the regular payout, Taylors shares will support a dividend yield of 6.6% during 2015. Both the special and regular payouts are covered one-and-a-half times by earnings per share, so theres room for further payout growth. Taylor currently trades at a lowly forward P/E of 10.2.
LSL Property Services(LSE: LSL) is another property play thats throwing off cash. During 2014 LSLs shares supported a dividend yield of 6.9%, which included both a regular and special dividend payout. The companys regular dividend payout came to 12.3p per share during 2014, while the special payout amounted to 16.5p per share.
And there could be further special payouts in the cards. Although City analysts expect the companys dividend yield to fall back to 4.4% for this year, this figure only includes the regular payout. However, the regular payout is covered more than twice by earnings per share, leaving plenty of room for growth.At present LSL trades at a forward P/E of 9.6.
Best income picks
Ifyou already own these income champions, and you’re looking for other top dividend paying stocks, then why not check out The Motley Fool’snew income report double pack.
For a limited time only we’ve bundled together our top income report,”How To Create Dividends For Life“, with a new report entitled,”My 5 Golden Rules for Building a Dividend Portfolio”.
Justclick hereto download the free report double pack today!
Do NOT buy these stocks
Theres lots of opportunity out there in todays market but theres also PLENTY of danger.
In anticipation of Champion Shares PROs brief opening to new membership a few short weeks from now, the analyst team behind the Motley Fools most exclusive service has agreed to share 3 stocks they believe YOU would do best to avoid.
PRO research is rarely made available to the general public. To find out the names of these “don’t buy” companies — and to claim your 100% FREE copy of Steer Clear Stocks right away — simply click here.