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Shopping for FTSE 100 shares is a superb solution to goal dependable dividends over time.
Throughout 2024, UK blue-chip shares paid out £78.5bn in bizarre dividends in 2024, in line with AJ Bell. That labored out at a fatty £1.5bn per week on common, a quantity unmatched wherever else on the planet.
A number of corporations, together with HSBC (LSE:HSBA) and Admiral, additionally paid out particular dividends.
3 FTSE dividend stars
AJ Bell’s boffins count on cumulative bizarre dividends to rise once more in 2025. A windfall of £80.4bn is predicted, transferring nearer to 2018’s report excessive of £85.2bn. However there are some caveats, with far fewer particular dividends being anticipated.
The dealer has additionally trimmed its dividend estimates, down from £83bn tipped firstly of the yr. Income forecasts are starting to melt throughout the FTSE 100 index. With threats like commerce wars, rising inflation, and extreme geopolitical uncertainty, traders want to consider carefully when selecting dividend shares.
With this in thoughts, listed below are three high-yielding dividend shares I believe demand an in depth look.
Dividend grower
Defence shares like BAE Methods might be an awesome low-risk choice to think about in right now’s local weather.
They’re pure dependable dividend payers throughout the financial cycle, reflecting their non-cyclical operations. The sector outlook is particularly sturdy given geopolitical stresses which might be boosting defence spending.
BAE has raised annual dividends yearly since 2012. Boosted by a 2% rise in working revenue, it raised this yr’s interim dividend 9% to 13.5p per share.
Metropolis analysts count on BAE’s dividends to maintain rising sharply by to 2027. They count on annual yields to rise steadily from 1.8% this yr by to 2% after which 2.3%. It’s a prime dividend contender regardless of provide chain pressures.
8%+ dividend yields
M&G additionally has a protracted report of unbroken dividend progress relationship again to its IPO in 2019. Just like the BAE, forecasters predict this sturdy development to proceed over the subsequent few years as properly.
Dividend yields anticipated to be an unlimited 8.1% for this yr, and eight.4% and eight.7% for 2026 and 2027, respectively. These figures tower above the broader FTSE 100 common of three.1%.
Earnings at M&G are extremely delicate to rates of interest and the struggling economic system. The corporate has a robust steadiness sheet, although, which ought to help near-term rewards. Its Solvency II capital ratio was a market-leading 230% as of June.
A inventory I personal
Banking large HSBC paid a particular dividend in 2024 because it returned money from asset gross sales to traders. The dearth of comparable motion this yr means the entire dividend is on track to fall.
But, bizarre dividends are anticipated to maintain creeping greater, supported by the financial institution’s spectacular CET1 capital ratio. At 14.6%, as of the mid-point of 2025, it remained above a goal vary of 14% to 14.5%.
This underpins dividends which might be predicted to yield 5.2% for this yr, 5.5% for 2026, and 6% for the yr after.
HSBC’s a FTSE 100 dividend share I maintain in my very own portfolio. Competitors is intense throughout its territories. Pushed by booming rising markets, I’m assured the passive earnings it delivers will develop strongly over time.
