Phoenix Group’s 8.5% dividend yield looks here to stay

At a forecast 8.5%, Financial services group Phoenix, has one of the highest dividend yields in the FTSE 100. And it has all the hallmarks of a great income play, says Rupert Hargreaves.

Phoenix Group
(Image credit: © Alamy)

Financial services group Phoenix (LSE: PHNX) currently supports one of the highest dividend yields in the FTSE 100. According to the company’s own forecasts, this year the stock is set to yield 8.5%.

Unlike many other high yield stocks, what is really interesting about Phoenix is the fact that it has laid out a plan to return cash to investors over the next two years. Beyond that, management has a plan to generate billions of pounds in additional capital, which will help support dividend growth.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.