Divi research tips defensive stocks

Private banking clients who want ’solid dividends’ on their investments are facing a diminished pool of stock picks, The Share Centre has indicated.

According to analysis from experts at the firm, large energy providers and drug companies both have good prospects of maintaining their dividends going forward.

Blue-chip companies tipped include the National Grid, GlaxoSmithKline and Vodafone.

However, The Share Centre also pointed out that dividends had been slashed for financials over recent months - stocks which were previously seen by many investors as rock-solid.

Stock markets around the world have been hit by near-unprecedented volatility over recent months, as the global credit crunch has tipped the real economy into recession.

Negative output growth for the global economy is expected for 2009 by the IMF - a near-unprecedented situation in peacetime.

Nick Raynor, Investment Adviser at The Share Centre, said: ’The past year has been one of turmoil for income seeking investors as historically favoured sectors such as banking have either seen an aggressive cut or a complete erosion in dividends.’

He added: ’Investors should be looking out for companies that are traditionally defensive, coupled with an ability to expand operations around the world.’ ADNFCR-2318-ID-19190641-ADNFCR