Lloyds Banking Group PLC (LON:LLOY) was the top traded company for a second year in a row in 2018 following a successful turnaround under chief executive Antonio Horta-Osorio.
Despite posting record annual profits in February and rewarding shareholders with share buybacks worth up to £1bn and a 20% increase in its total dividend, shares in Lloyds have fallen 20% in the year to date amid concerns about Brexit.
READ: Lloyds shares held back by Brexit fears but dividend yield still a big draw for investors
But the bank has made considerable progress since its £20.3bn government bailout in 2008 during the height of the financial crisis, having returned to private ownership in May last year.
“It has made good progress in restructuring itself and cutting costs, so much so that dividends have been restored to historic norms as profits have recovered,” said Helal Miah, investment research analyst at The Share Centre.
Vodafone's lower share price and income yield 'attractive'
The second most traded company in 2018 was Vodafone PLC (LON:VOD). Last month the telecoms giant reported a half-year loss of €7.8bn after taking a hit related to the merger of its India business with Idea Cellular but it maintained its dividend and upgraded its cash flow forecast.
READ: Vodafone slumps to first-half loss but shares jump as it maintains dividend
Its shares have fallen 31% since the start of the year.
Miah said: “With consumers demanding ever-increasing levels of connectivity, personal investors have continued to recognise telecoms companies such as Vodafone, as ones to watch and hold within their portfolio, a lower share price and great income yields will add to the attractiveness.”
Oil price recovery aids BP
In third place of most traded firms was oil giant BP PLC (LON:BP), whose profits have been boosted by a recovery in oil prices and cost cuts.
BP said in February that 2017 was one of its strongest years in recent history. In its most recent trading update, it posted its highest quarterly net profit in more than five years of US$3.8bn for the third quarter and raised its dividend by 2.5%.
READ: BP doubles quarterly profits more than forecast as crude prices and production rise
Shares have fallen 2.2% in the year to date.
GSK maintains dividend despite rising debt
The fourth and fifth most traded companies were GlaxoSmithKline PLC (LON:GSK) and Sirius Minerals PLC (LON:SXX).
GSK raised its full-year earnings guidance in October on the back of a strong performance for its Shingrix shingles vaccine and earlier this month it agreed to buy US cancer drug maker Tesaro and to sell its Indian Horlicks business to Unilever PLC (LON:ULVR).
READ: GSK ups full-year earnings forecasts on strong sales of Shringrix vaccine
The company has said it continues to expect to pay 80p per share in dividends for 2018 even though net debt is forecast to increase. Shares in GSK have gained 13% so far this year.
Sirius Minerals remains a 'popular punt'
Meanwhile, Sirius Minerals has advanced its Woodsmith polyhalite mine in Yorkshire project, though shares are down more than 7% since the start of the year.
READ: Shore Capital highlights “exciting time construction-wise” for Sirius Minerals as it advances Woodsmith polyhalite mine
Woodsmith is the largest and highest grade polyhalite project anywhere in the world with a total of 2.66bn tonnes.
“Potash miner Sirius Minerals remains a popular punt given that it is one of the few mining companies with operations in the UK,” said Miah.