Picture supply: Getty Photographs
The FTSE 100 goes via a tough patch in the meanwhile. As I write this on Thursday morning (19 March), the index is down about 1.9% for the day and seven% for March.
A number one funding firm
The inventory I wish to spotlight as we speak is M&G (LSE: MNG). It’s a number one financial savings and funding enterprise that has been round (in some form or type) since 1848.
At this time, it has over 1,000 institutional purchasers and 4.2m retail prospects globally (whole belongings below administration of about £375bn). So, it’s a major participant within the monetary world.
Now, in February, this firm’s share value was above 320p. At this time nevertheless, it’s close to 280p.
On the present share value, the inventory seems to be attractively valued – the forward-looking price-to-earnings (P/E) ratio is below 10. In the meantime, the dividend yield is eye-catching.
Excessive dividends on supply
This firm is a dependable dividend payer. Because it was cut up off from Prudential in 2019, it has elevated its payout yearly.
For 2025, it declared a complete payout of 20.5p per share. That interprets to a yield of about 7.3% at as we speak’s share value.
Wanting forward, analysts anticipate payouts of 21.2p per share this yr and 21.9p subsequent yr. In different phrases, earnings progress is anticipated.
Observe that dividend protection (the ratio of earnings per share to dividends per share) is stable at round 1.4 occasions. So the payout seems to be sustainable.
Operational momentum and a long-term progress story
It’s price declaring that there’s extra to this firm than simply the low valuation and excessive yield. It additionally has a good bit of operational momentum.
In 2025, for instance, it noticed web flows from open enterprise of £7.8bn. Within the firm’s full-year outcomes, Group CEO Andrea Rossi stated that he expects the momentum to proceed in 2026.
It’s additionally well-placed in the long run to learn from a) rising demand for funding and retirement options and b) rising fairness markets. The extra its belongings below administration develop, the upper its earnings.
“With a clear strategy and the right resources in place, I am confident in M&G’s ability to deliver meaningful profit acceleration and sustainable long-term value for customers, clients and shareholders.”
M&G Group CEO Andrea Rossi
A compelling alternative
After all, like each inventory, it has its dangers. One is a serious market meltdown – this might see earnings drop sharply, probably placing stress on the dividend.
One other threat is turbulence within the personal markets (which is rising in the meanwhile). Not too long ago, the corporate has been rising its publicity right here.
General although, I like the chance/reward set-up at as we speak’s share value. I feel the inventory is price a glance.
However it’s not the one FTSE 100 dividend inventory that appears enticing proper now…
