Key Takeaways
- HSBC and Admiral reported dividend updates alongside earnings in August.
- Diageo has been dropped from the dividend monitor after its yield fell below 3%.
- Oil and gas major BP raised its dividend by 4%, while Shell held the payout steady.
Earnings season has brought a raft of updates for the stocks in our dividend monitor, with one name dropping off the list entirely.
After eight of our 13 dividend stocks reported in July, both HSBC HSBA and Admiral ADM rounded out the earnings season with dividend updates at the start of August.
HSBC, the largest stock in the FTSE 100 index, announced a 10 cents per share payout for its second quarter, matching the dividend it paid in Q1 and in the second quarter of 2025. Shareholders will receive the payment on Sep. 25. The global bank also resumed share buybacks, announcing a USD 1 billion program as the firm beat profit expectations.
HSBC’s results add to a strong earnings season for UK-listed banks, after both Lloyds LLOY and NatWest NWG announced major increases to their payouts.
Meanwhile, Admiral lowered its payout to 70.5p as the insurer’s profit fell 18% amid weaker demand for car insurance. The firm aims to pay out 65% of post-tax profit to shareholders. Admiral also announced a £45 million share buyback.
Though oil majors BP BP. and Shell SHEL do not make our monitor, they are significant FTSE 100 dividend payers. BP increased its dividend 4% to 8.66 cents per ordinary share on August 4, after Shell decided to hold its payout at 39.06 cents per share in July.
Which Stocks Paid Dividends in August?
August was also a busy month for payment dates, with both British American Tobacco BATS and Schroders distributing dividends to shareholders in recent weeks.
British American Tobacco, which has the second highest dividend yield among stocks in our monitor, paid out 61.26p per share for its second quarter on Aug. 14. The firm has already announced the same payment will be made for the third and fourth quarter, with these dividends due in November 2026 and February 2027.
Schroders also paid out an increased dividend of 7p per share on Aug. 20. The company will soon depart public markets once it is acquired by US asset manager Nuveen later this year. The £9.9 billion deal is expected to complete by the end of 2026.
Which Stocks Raised Their Dividends During Earnings Season?
- Lloyds LLOY
- NatWest NWG
- Unilever ULVR
- Reckitt Benckiser RKT
- GSK GSK
- Schroders SDR
- British American Tobacco BATS
Diageo Drops Out as Dividend Halved
Diageo DGE has been removed from the dividend monitor after its forward dividend yield fell below our 3% threshold.
The firm is in the early stages of a turnaround plan under new CEO Sir Dave Lewis, known for his successful transformation of Tesco. One of his first major actions since joining the firm in January was to halve Diageo’s dividend following the drinks maker’s February results, arguing the firm needed to strengthen its balance sheet and allow for greater financial flexibility.
In its Aug. 6 earnings update, Lewis held Diageo’s dividend at 30 cents per share. The sterling equivalent will be announced on Nov. 19, based on exchange rates.
Methodology for UK Dividend Stock Screen
To make it on to the monthly list, FTSE 100 companies need now to have a narrow or wide economic moat, pay a dividend, and have a forward yield of 3% or more. This is below the Bank of England base rate, which stands at 3.75%. The methodology was changed in 2022, introducing a forward dividend yield hurdle of 3%.
