Three UK-quoted companies make a global list of 47 ‘high quality dividend stocks,’ according to research by investment bank UBS.

These are financials sector blue-chips Prudential (PRU) and Schroders (SDR), together with packaging group Mondi (MNDI).

The UK trio currently trade on 12-month forward yields of 2.57%, 3.28% and 2.79% respectively.

We note that the list excludes the most popular stocks among retail investors for dividends, such as BP (BP.), Vodafone (VOD) and HSBC (HSBA).

SO HOW DID THE TRIO GET PICKED?

Analysts at UBS tapped into their quantitative research models to identify stocks which are high quality compared to their peers, which pay a dividend and which are unlikely to cut the dividend payment in the foreseeable future.

Companies listed outside of the UK on the UBS dividend list include Viagra-maker Pfizer, computer chips titan Intel and Proctor & Gamble, the US consumer products giant.

UBS claims that income yields are currently trending within historic norms, when compared with price to book valuations. The report also concludes that payouts in Japan and Europe (including the UK) ‘appear cheapest’.

The research also flags up areas where dividens cuts look most likely. In Europe, energy, telecoms and utility sector yields are perceived to be most at risk. Technology companies in Europe are ranked least likely to peg back dividends.

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