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When constructing a protracted‑time period portfolio of dividend shares, it’s not simply in regards to the highest yields. What actually issues is constant development backed by stable income, wise payout ratios, and a manageable steadiness sheet.
If payouts rise 30%-70% over a couple of years and are properly lined by earnings, that’s extra significant than a stretched 10% yield that dangers a lower.
With that in thoughts, I’ve recognized three FTSE shares forecast to develop dividends by 40% or extra by 2028: Bellway (LSE: BWY), Lloyds and Rolls‑Royce.
The query is: how correct are these forecasts?
Kicking the tyres
Beginning with Lloyds, the dividend per share (DPS) was 3.64p in 2025. Forecasts level to 4.18p this yr, 4.6p in 2027 and 5.06p in 2028. That’s round a 40% complete enhance over three years.
That regular development mixed with a beginning yield comfortably forward of money financial savings can actually add up for affected person traders.
Bellway and Rolls‑Royce are even punchier. Bellway’s atypical DPS is presently 70p per share, forecast to edge as much as about 70.6p this yr, then leap to 90.1p in 2027 and 100.9p in 2028. That’s a complete enhance of roughly 57% between 2025 and 2028.
Rolls‑Royce begins from a a lot smaller payout, with a complete dividend of solely 9.5p per share for 2025 after its current restart. However brokers anticipate 12.6p in 2026, 14p in 2027 and round 16.7p in 2028, which is about 76% development over the identical interval.
These final two names are clearly extra cyclical and depend on continued earnings momentum, however the dividend development profile is tough to disregard.
Taking a better have a look at Bellway
Bellway is the outlier right here. Though it sits alongside two very properly‑identified FTSE 100 giants, it’s a FTSE 250 mid‑cap with a superb observe file. The housebuilder has paid dividends for 41 years with out interruption, which is spectacular given the variety of housing slumps and rate of interest cycles it has lived by means of.
The dividend coverage targets cowl of round 2.5 occasions earnings, with the present payout ratio at about 52.7%. That’s a snug center floor — beneficiant, however not reckless.
The steadiness sheet reveals very low debt of about £48.7m and money of roughly £146m. Spectacular numbers, even after launching a £150m share buyback.
Importantly, money protection of two.64 occasions provides it further respiratory house if the housing market slows (or construct prices rise). Principally, there’s sufficient money to fund operations and nonetheless pay shareholders with out having to lean closely on borrowing.
That doesn’t imply it’s threat‑free. As a housebuilder, it’s uncovered to the home housing cycle. Weaker costs, larger mortgage charges or tighter lending might all damage income or pause dividend hikes.
The underside line
For UK traders, Bellway’s an fascinating instance of what high quality dividend development ought to appear like. It’s obtained a 4‑decade observe file, a smart payout ratio, and powerful money protection. Which means a forecast of greater than 50% in three years will not be unrealistic.
However whether or not it’s best for you is determined by how comfy you’re with the ups and downs of the housing market. For traders keen to experience out volatility for the possibility of robust earnings development, it’s a share that deserves a better look — along with extra acquainted names together with Lloyds and Rolls‑Royce.
