These UK stocks are expected to pay bumper dividends – but beware of broken promises, research says

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Total FTSE 100 dividend payments are expected to rise by a quarter this year to £76.9 billion ($106.3 million).

AJ Bell highlighted in a report Wednesday that investors will need to look carefully at the 10 firms expected to yield the highest payouts to shareholders this year, since several of them have a record of being forced to cut dividends during challenging times.

Rio Tinto is the highest-yielding individual stock in the FTSE 100, with an expected yield of 12%, followed by BHP at 9.2%, Imperial Brands at 8.7% and Evraz at 8.5%. An employee sits reflected in a glass screen featuring the London Stock Exchange Group Plc's logo at their offices in London, U.K., on Thursday, Jan. 2, 2020.dividend payments are expected to rise by a quarter this year to £76.9 billion , meaning the U.K.'s leading index is set to yield 3.7% for 2021, according to data aggregated by British stockbroker AJ Bell.

Meanwhile the index's average dividend coverage ratio, which measures the number of times a company can pay dividends to its shareholders, has improved to 1.83x, its highest level since 2014. To supplement the higher dividends, many FTSE 100 companies have begun to announce share buybacks. A total of twelve firms have so far announced buybacks to the aggregate tune of £7.2 billion:

 

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