Investors who want to invest in dividend-paying companies rather than hot growth stocks should consider UK dividend shares, according to the Motley Fool UK. The publication recommends Unilever, Diageo and National Grid because they tend to perform well during economic downturns and fulfil defensive criteria. Despite Unilever’s low P/E ratio of 19, the company is expected to continue rising according to Jefferies, which has put its target at 5,000 pence. Diageo boasts a 20-year track record of consecutive dividend increases and relatively recession-proof brand reputation, despite being 15% below all-time highs. National Grid can provide investors with the highest yield of around 5.1%, offers defensive capabilities, and is at the heart of the energy transition.
Edward Sheldon, who has positions in both Diageo and Unilever, is mentioned in the article.
