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The FTSE 100 rose above 9,500 for the primary time earlier this month. But regardless of reaching this milestone, many dividend shares proceed to sport bumper dividend yields.
One such Footsie inventory is Aviva (LSE:AV.). Based mostly on present fiscal 2026 forecasts, the insurer is tipped to pay out 41.5p per share. At at present’s share worth of 659p, that equates to a ahead yield of 6.32%.
Contemplating the Aviva share worth is up 40% 12 months so far, that’s nonetheless a hearty providing. And 41.5p would signify year-on-year dividend development of seven.2%, thereby outpacing UK inflation by an honest margin.
In fact, these forecasts won’t transform correct (generally they find yourself extensive of the mark). However Aviva’s having fun with sturdy enterprise momentum proper now, with working revenue leaping 22% to £1.07bn within the first half of the 12 months.
Additionally, the mixing of Direct Line is effectively underway. This mixed enterprise can have over 21m clients, or 4 in 10 adults within the UK. Aviva’s assured this deal will “contribute significantly” to future development.
Over the previous 5 years we’ve reworked the efficiency and prospects of Aviva…We’re very effectively positioned to speed up development within the capital-light areas of wealth, well being and normal insurance coverage, and ship increasingly more for our shareholders.
Aviva CEO Amanda Blanc.
Admiral
One other FTSE 100 insurance coverage inventory forecast to supply respectable earnings in 2026 is Admiral (LSE:ADM). The corporate’s anticipated to dish out £2.13p per share, equating to a forward-looking yield of 6.55%.
This is able to solely be 1.1% development, however Admiral has a strong monitor report of accelerating its annual payout (practically 8% over the previous few years). And dividends have risen considerably since 2023.
The UK motor insurance coverage large is well-run outfit with wonderful underwriting margins and a eager give attention to enhancing its knowledge capabilities to take care of its aggressive positioning. Within the first half, UK clients rose 13% to 9.3m.
As a significant UK motor insurer, Admiral’s uncovered to claims inflation (restore prices, labour, components, and so on). Aviva faces comparable dangers with its beefed-up automobile insurance coverage enterprise, whereas each would face challenges from an financial downturn.
Nonetheless, I feel they’re high insurance coverage shares to think about for his or her long-term earnings potential.
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REIT
Lastly, there’s Londonmetric Property (LSE:LMP). It is a actual property funding belief (REIT) that owns lots of logistics and warehousing property — the form of property that underpin the net procuring financial system.
This 12 months, Londonmetric’s dividend is forecast to leap greater than 20%. Then it’s tipped to rise one other 3.6% subsequent 12 months to 12.9p. At at present’s share worth of 189p, that will lead to a yield of 6.82%.
In fact, property values stay delicate to increased rates of interest, and a UK recession might result in extra tenant defaults. Nevertheless, Londonmetric’s occupancy charge is excessive at 98%, and I like that it has been making the most of market uncertainty to accumulate property and improve its publicity to logistics.
Supply: LondonMetric Property.
As proven above, the corporate has greater than doubled its publicity to logistics as e-commerce has boomed over the previous decade. It’s additionally lowered publicity to workplaces and retail parks, whereas leaning into areas with extra resilience and/or structural development.
With rates of interest anticipated to fall in 2026, I feel Londonmetric, at 189p, can also be price contemplating for earnings.
