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Dividend traders have some scorching full-year outcomes coming their method in March, all providing tempting excessive yields. Let’s begin with a take a look at Aberdeen Group (LSE: ABDN), on account of report on Tuesday (3 March) — with a forecast 6.6% yield.
The funding administration firm has had a tricky 5 years, down 33%. Nevertheless it’s been staging one thing of a comeback since early 2025 — up 78% since its 52-week low final April.
The primary concern I believe traders have to observe is that the dividend hasn’t risen up to now few years. And forecasts present it not transferring for the following three years both. Over a interval of excessive inflation, the money worth of the Aberdeen dividend has been falling in actual phrases.
January’s This autumn buying and selling replace revealed a 9% rise in belongings underneath administration. And the agency’s funding platform noticed progress of 500,000 new prospects. Aberdeen feels like a long-term earnings funding to think about — however I wish to see these dividend develop.
Constructing again
Taylor Wimpey (LSE: TW.) offers us the total 2025 lowdown on 5 March. And this time we’re taking a look at a fats 8.3% predicted yield. The home builder earlier introduced 10,614 UK house completions excluding joint ventures, up from 9,972 in 2024. That’s across the center of administration’s steering vary.
The general common promoting worth edged as much as £335k, from £319k. On the finish of December we have been taking a look at an order e book valued at £1,864m, down a bit from £1,995m the earlier December.
Web money declined a bit, from £565m on the finish of 2024 to £343m. And that may increase somewhat concern in regards to the dividend. Analysts see it regular, however not rising within the subsequent few years — and solely barely coated by earnings by 2027.
So a dividend minimize is the largest hazard I believe I see — and I’d count on it to trigger a share worth dip. However I reckon long-term traders might do nicely to think about all the principle UK home builders.
Insurance coverage money cow
It’s the flip of Authorized & Common (LSE: LGEN) on 11 March, with its forecast 7.9% dividend yield presently the largest on the FTSE 100. Forecasters don’t count on 2025 earnings to cowl the dividend. However they do see cowl returning in 2026, after which rising in 2027.
I believe my greatest concern proper now’s a ahead price-to-earnings (P/E) ratio of 16. Which may appear good — and barely above the Footsie’s long-term common — by common requirements. However this is usually a very cyclical sector. And I’m undecided the present share worth has sufficient security room to deal with any volatility downturn.
However for traders who aren’t frightened about short-term ups and downs? I see Authorized & Common as a possible long-term money cow. And I undoubtedly fee it as considered one of my prime earnings potentialities proper now. In actual fact, I’m considering of including to my same-sector holding in Aviva.
