The stock paying half of all FTSE 100 dividend income in August

A £2.4 billion payday for FTSE 100 shareholders will be led by British American Tobacco (LSE:BATS) and Vodafone Group (LSE:VOD) when six companies tomorrow distribute dividends on the first day of August.

The others are Next (LSE:NXT), F&C Investment Trust Ord (LSE:FCIT), ICG (LSE:ICG) and United Utilities Group Class A (LSE:UU.), with only low-yielding Halma (LSE:HLMA) and Games Workshop Group (LSE:GAW) in the diary over the rest of the month.

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The overall total for August of £2.5 billion is down from £3.2 billion the year before, largely because Vodafone has rebased its total dividend to 4.5 euro cents a share.

This will include Friday’s full-year award of 2.25 cents, which converts to a sterling equivalent of 1.95419p a share or a total of about £471 million. A year ago, the phone company paid a final dividend of 4.5 euro cents, or 3.79p a share.

Vodafone’s new capital allocation framework follows a wide-ranging restructuring that has included the sale of operations in Italy and Spain.

The dividend cut has reduced the current yield to 4.6%, which compares with the previous level above 11% when the old payout level was not fully covered by earnings.

Vodafone intends to grow the dividend from here, supported by buybacks after it completed the first programme worth two billion euros and commenced another in May.

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The new dividend level ends a five-year run of summer payments at 4.5 euro cents, although shareholders got 10.23 euro cents, or the equivalent of 9.9p a share as recently as August 2018.

British American Tobacco is the month’s biggest payer when it hands over £1.3 billion, representing the second distribution of four equal instalments of 60.06p a share in relation to the 2024-25 financial year.

The tobacco giant, whose brands include Dunhill, Lucky Strike and Vuse, boasts 25 consecutive years of dividend growth and trades with a current yield of 5.9%.

Half-year results posted earlier today showed a performance slightly ahead of expectations, with revenues growth across 2025 on course for the top end of the 1-2% forecast range.

The group said it remained committed to a progressive dividend policy, which is based upon 65% of long-term sustainable earnings.

Other companies paying tomorrow include ICG, which is the new name for the global alternative asset manager Intermediate Capital Group.

It holds a 15-year record of dividend growth, which over the last five years has been at an annualised rate of 10%. This includes a 5% rise to 83p a share for the 2024-25 financial year, including the latest full-year award of 56.7p a share worth £165 million.

Other full-year payments include the 34.57p a share or total of £236 million due from United Utilities, whose shares yield an income of 4.6%.

A strong year for Next shares means it now trades with a yield of 0.6%, compared with 2.3% a year ago. The retailer, which today gave another boost to annual earnings guidance, is set to pay a dividend of 158p a share worth £184 million.

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Another low-yielding stock in this month’s dividend diary is the fire safety technology business Halma, which is due to distribute 14.12p a share or £53 million on 15 August.

The 7% increase in the total for the 2024-25 financial period is the 46th consecutive year that the dividend has grown by 5% or more, having lifted profits for 22 years in a row. It yields 0.7% after the defensive stock rose more than 20% this year.

On the same day, Games Workshop is due to pay 85p a share or £28 million as part of its commitment to return only ’truly surplus’ cash as dividends.

The group, which joined the FTSE 100 in December, told shareholders this week that it also intends to distribute 55p a share to shareholders on 3 October. This lifts the sum declared so far in relation to 2025-26 to 140p a share from 100p at the same stage the year before.

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Tuesday’s annual results helped shares to top 16,000p, having surged from 5,880p in October 2022 and 10,000p in September.

It said its aim is to return surplus cash to its owners in ever increasing amounts, adding: “We believe shareholder value is created, primarily, by not destroying it. We have no intention to acquire other companies, nor to dispose of any of those we own.”

Source: interactive investor, ShareScope. Data and dividend conversions to sterling from euros at exchange rate correct on 30 July 2025.