FTSE 100 dividend shares are set to pay out practically £80bn in 2025! This is find out how to get some

Footsie dividend shares are set for bumper money payouts in 2025. And the index is also on for a brand new annual report for share buybacks.

That’s what the most recent outlook from AJ Bell‘s Dividend Dashboard says. Aggregated from inventory market analysts, forecasts point out £79.4bn in FTSE 100 dividends this 12 months. And with the index additionally up 17% up to now in 2025, I believe it’s honest to name it a terrific 12 months for UK buyers.

Share buybacks assist enhance costs, as they raise future per-share measures like earnings and dividends. And with £50.9bn introduced by the tip of September, the all-time report of £58.5bn — set final 12 months — is in sight.

Add the anticipated dividends and buybacks, and we’re taking a look at round £130bn in whole FTSE 100 shareholder returns in 2025. That’s 5.5% of the full worth of the index. Who needs all their cash in a Money ISA when one thing like that is on supply? Not me, that’s for positive.

Match the index

The 2025 outlook suggests a simple strategy to long-term investing. That’s to contemplate an index tracker. We might purchase shares in, say, iShares Core FTSE 100 UCITS ETF — which is less complicated than its massive title may sound. It simply tracks the index with the goal of matching its progress and dividend returns.

It’s nonetheless open to common inventory market danger, and dangerous years can be simply as dangerous as the entire market. I additionally suppose buyers ought to contemplate different comparable exchange-traded funds managed by completely different corporations — simply to diversify in that path too.

However as a option to make investments some cash within the inventory market after which sit again for the long run — with no head-scratching or poring over monetary reviews — it might be arduous to beat.

Beat the index?

Many buyers have extra time to spare, and we wish to attempt to do even higher than the cracking index efficiency I described above. In my case, I deal with sectors I believe can generate sturdy long-term money stream. I fee insurance coverage as a key favorite.

I maintain Aviva shares, however I’m additionally contemplating including Authorized & Normal (LSE: LGEN) to my Shares and Shares ISA. The share value has been comparatively flat for the previous few years. However we’re taking a look at a hefty 9% forecast dividend yield.

Dividends aren’t assured. And the insurance coverage enterprise could be one of many Footsie’s extra unstable sectors. However AJ Bell factors out that we haven’t seen a dividend minimize from L&G previously decade.

Cowl and forecasts

I’m a bit involved that forecast earnings for this 12 months fall in need of the anticipated dividend. However with earnings anticipated to develop strongly within the subsequent few years, my concern’s muted.

At interim time, CEO António Simões mentioned: “We’re delivering on our promise to return extra to shareholders with over £5bn in dividends and share buybacks over three years.“

Volatility — of earnings and share value — nonetheless must be the principle danger. However I believe buyers eager to maximise their share of FTSE 100 dividends ought to positively take into consideration Authorized & Normal.