The brexit is through and Britain as part of the European Union history. After leaving the EU in the night from 31 January to 1 February 2020, no one can currently predict exactly how this step will affect the UK economy. As so often in life, there are positive and negative opinions on this issue.

Advantage for an investment in British equities: 0% withholding tax

For those who expect a positive development of the British economy and are prepared to invest in securities of UK companies, such an investment offers a decisive advantage. Unlike countries such as France, the Netherlands or Austria, the UK does not levy withholding tax on dividends paid into the accounts of private investors in Germany. Only the German capital gains tax and the solidarity surcharge are levied.

First-class dividend payers among British stock corporations

In addition to the currently favorable share prices, several British stock corporations are delighting their investors with substantial dividend payments. Those who enter the market at low prices can achieve a respectable dividend yield thanks to the attractive dividend to share price ratio. If the companies were to even increase the dividends paid in the future, this would result in a further increase in the yield.

3 British stock corporations with lavish dividends

BT Group (WKN 794796) British Telecom provides various telecommunications, network and IT services in more than 180 countries. At the same time, the company is one of the most important mobile phone providers. With an expected dividend of EUR 0.12 for the financial year 2019/2020 and EUR 0.13 for the financial year 2020/2021, shareholders of BT Group achieve a dividend yield of 6.8 and 7.3 percent respectively, based on a current share price of EUR 1.77 (as of 26 February 2020). BT Group’s share price could pick up again at the latest after the 5G network has been built.

SSE PLC (WKN 881905) Scottish & Southern Energy PLC is a natural gas and electricity company that is also active in the telecommunications sector. In 2018 the group’s turnover was GBP 31.23 billion. Despite a rapid rise in the share price between May 2019 and February 2020, which increased from its last 52-week low of EUR 11.52 on 24 May 2019 to a handsome EUR 20.46 on 19 February 2020, SSE shareholders can look forward to lavish dividend payments even with a current investment. While a dividend of EUR 0.98 can be expected for the 2019/2020 financial year, the dividend for the 2020/2021 financial year should even be EUR 1.00. At a share price of 19.17 euros (as of 26 February 2020), the dividend yield is 5.22 percent – a figure that is certainly not to be sneezed at.

Rio Tinto PLC (WKN 852147) The mining company Rio Tinto PLC, which operates in numerous countries, has been a reliable dividend payer for many years. Shareholders, who have invested their money in the company for a long time, benefit not only from the dividend but also from the increase in the share price in recent years. With a few setbacks, the value has more than doubled and a half from its low of just under EUR 20 at the beginning of 2016 to its previous high of EUR 56.53 on 4 July 2019. For the years 2019 to 2021, experts see slightly falling dividend payments, which should, however, lead to attractive returns due to their level. A dividend of 4.49 euros is expected in 2019, while 3.09 euros is expected in 2020 and 2.75 euros in 2021. Based on the current share price of 46.18 euros (as at 26 February 2020), this results in dividend yields of 9.72 percent for 2019, 6.69 percent for 2020 and 5.95 percent for 2021. If the share price continues to develop positively, the shares of Rio Tinto PLC would continue to generate juicy returns in the future, which are secured by high dividend payments.

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