Business
FTSE 100 Stocks Forecasted to Yield Over 6.3% by 2026
The FTSE 100 index recently surpassed the notable milestone of 9,500 points, marking a significant achievement for investors. Despite this upward movement, numerous dividend stocks within the index are projected to deliver impressive yields. Among these, **Aviva** (LSE: AV.) is expected to stand out, with forecasts indicating a dividend payout of **41.5 pence** per share for the fiscal year 2026. At the current share price of **659 pence**, this translates to a forward yield of **6.32%**.
This anticipated payout reflects a year-on-year growth of **7.2%**, which is anticipated to comfortably outstrip UK inflation rates. Although forecasts can be unpredictable, Aviva has demonstrated robust business momentum recently, with its operating profit climbing **22%** to **£1.07 billion** in the first half of the year. The ongoing integration of **Direct Line** is also progressing, potentially enhancing Aviva’s customer base to over **21 million**, representing roughly **40%** of UK adults.
**Amanda Blanc**, CEO of Aviva, expressed confidence regarding the company’s trajectory, stating, “Over the past five years, we have transformed the performance and prospects of Aviva. We are very well positioned to accelerate growth in the capital-light areas of wealth, health, and general insurance, and deliver more and more for our shareholders.”
Another promising stock in the FTSE 100 is **Admiral** (LSE: ADM), which is slated to distribute **£2.13** per share, yielding an attractive **6.55%**. Although this represents a modest growth of **1.1%**, Admiral has a solid history of increasing its annual dividends, averaging nearly **8%** growth over recent years. The company has also seen a **13%** rise in UK customers, now totaling **9.3 million**.
As a leading motor insurance provider, Admiral remains cognizant of potential risks associated with claims inflation, including rising repair costs and the economic challenges that could arise from a downturn. Nevertheless, it continues to be regarded as a strong choice for long-term income.
In the realm of real estate investment, **Londonmetric Property** (LSE: LMP) is a noteworthy contender. This REIT specializes in logistics and warehousing properties, which are essential to the thriving online shopping sector. Londonmetric’s dividend is anticipated to increase by more than **20%** this year, with a further **3.6%** rise expected next year, bringing the total to **12.9 pence** per share. Given the current share price of **189 pence**, this results in a forward yield of **6.82%**.
Although property values can be sensitive to rising interest rates and potential recessionary pressures, Londonmetric maintains a high occupancy rate of **98%**. The company has strategically adjusted its portfolio to capitalize on market uncertainties, increasing its logistics assets while reducing exposure to offices and retail properties.
As interest rates are projected to decline by **2026**, Londonmetric presents a viable option for income-focused investors.
Investing in stocks such as Aviva, Admiral, and Londonmetric could potentially yield substantial returns, but investors should be mindful that tax implications depend on individual circumstances and may change in the future. This content serves as informational guidance and does not constitute financial advice.
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