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Dividend dogs vs diamonds: Part 2 – paying the price of quality

23/05/2019 · AstraZeneca (AZN)  · Compass (CPG)  · Diageo PLC (DGE)  · GlaxoSmithKline (GSK)  · Next (NXT)  · Persimmon (PSN)  · Relx (RELX)  · Unilever (ULVR) 

Dividends FTSE 100 Investment Ideas UK

Relx logo on board in headquarters

With seven FTSE 100 dividend stalwarts currently yielding over 8%, investors are starting to ditch companies which might follow Vodafone’s lead and cut their pay-outs. But the stocks whose dividends you can rely on come with an added valuation risk which investors might want to avoid.


In part one of our mini-series on dividends, we looked at the FTSE 100 companies which are likely to follow Vodafone’s lead and cut their dividends in 2019. We suggested that a yield of over 8% is a major red flag for investors considering the future of their income.

But if you’re going to dump the dividend dogs out of fear of a cut, where should you re-invest your money if you want to continue to receive a generous income?

That’s a tricky question to answer because many of the UK’s more reliable dividend stocks are very expensive, meaning the yield…

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