The FTSE 100 is home to some of the most generous dividend income shares in the world. Incredibly, 30 shares on the blue-chip index pay income of 4% or more. One stock pays double that. Here are three at the higher end of the yield scale that I think are worth considering today. Combined, they’d deliver income of around 7%.
Can Legal & General Group shares grow?
It’s hard to write about UK dividend stocks without mentioning Legal & General Group (LSE: LGEN), which boasts a bumper trailing yield of 8.08%. Sadly, the share price has less to recommend it. It’s been pretty flat for years. What’s the issue here?
Legal & General’s profits have been pretty up and down over the last few years. That’s down to volatile markets, rising interest rates, and restructuring costs as the board works to sharpen up the group and free up some capital.
Investors may have to be patient here, But while they wait for growth, the income should continue to flow. The board is pressing on with plans to pay loyal shareholders £5bn via both dividends and share buybacks. Legal & General is worth considering for income. The growth could take longer.
Is Land Securities Group right for you?
Commercial property specialist Land Securities Group (LSE: LAND), also known as Landsec, owns a spread of UK offices, shopping centres, and retail parks. It generates rental income from tenants and capital growth from property sales.
Landsec is structured as a real estate investment trust (REIT), which escape corporation tax if they distribute at least 90% of rental profits to shareholders. They tend to have chunky yields as a result and that’s the case here. The trailing yield is a mighty 6.45%.
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Again, the shares have been flat lately, so Landsec will likely appeal more to income seekers than growth investors.
Its retail centres have been threatened by e-commerce, while the working-from-home trend hit office demand. However, Landsec doesn’t have any trouble finding tenants, as its occupancy rate just hit a 20-year high. Its shares look cheap trading at just 12 times earnings. When the UK economy finally recovers, the Landsec share price could finally kick on. Sadly, we’re not there yet.
Can Barratt Redrow build up from here?
It’s been a tough few years for residential housebuilders. The biggest builder of the lot, Barratt Redrow (LSE: BTRW), hasn’t escaped unscathed. Its shares are down 65% over five years.
Higher building costs and employment taxes have driven up costs, while rising mortgage rates, the stuttering UK economy, and end of the help to buy scheme in 2023 squeezed demand. This year looked promising before the Iran war hit.
As the shares have fallen, the yield has climbed to 6.45%. However, Barratt Redrow trimmed it recently, and the forecast yield is lower at 5.7%. The shares are cheap, though, at just 10 times earnings. Investors need to be brave and patient. It could be a while before the housing market really kicks on.
Should you invest £5,000 in Legal & General Group Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Legal & General Group Plc made the list?
Harvey Jones owns shares in Legal & General Group.
