GlaxoSmithKline plc (LON:GSK) (LSE:GSK.L) has a dividend yield of 4.74%. In my view, it has investment appeal due to its diverse operations. I think in an industry where the patent cycle can mean volatile earnings relative to other industries, a consumer goods arm is a benefit to income investors seeking a steadier income. I’m also upbeat about GlaxoSmithKline’s new CEO and the potential for a refreshed growth strategy for the long run.
Aviva plc (LON:AV) (LSE:AV.L) has a dividend yield of 4.35%. Although the company has made good progress in my view with its reorganisation and restructuring, there could be some way to go. This could mean higher profitability and a positive outlook in my opinion. Aviva’s aim of increasing its dividend payout ratio also makes it a good dividend share in my view. I feel it is well placed to become a strong income stock and I’m surprised its dividend yield is still relatively high.
BP plc (LON:BP) (LSE:BP.L) has one of the highest dividend yields I can find among blue-chip shares. It is 6.97% at the moment. Although the oil price could fall and this would probably affect BP’s dividend affordability, I’m optimistic about the prospects for oil. I think gradual rises in demand and a possible extension to OPEC’s supply cut could be good for the oil price. I also think BP has a good asset base which could mean rising profitability in the long run.
National Grid plc (LON:NG) (LSE:NG.L) is arguably one of the most solid income stocks around. In spite of this, it still has a dividend yield of 4.4%. In my view, this means it has investment appeal. I’m still a bit uncertain about the outlook for UK share prices because of Brexit, so I’m optimistic about the prospects for relatively defensive shares. I’d class National Grid shares as relatively defensive owing to their relatively stable business model. Therefore, I’m bullish on the company’s share price prospects.