Admiral Group (LSE: ADM) has long been a go-to choice for UK investors looking to earn a second income from dividends. Best known for car insurance, the company isn’t as big a name as Prudential or Aviva – but it holds its own in the UK insurance sector.
What makes it interesting is its dividend history. Admiral has paid dividends for 20 years with no interruptions since 2016, and the 2025 dividend increased by 6.77% to 205p per share (compared to 192p in 2024).
So how much income can 100 shares net in 2026?
Crunching the numbers
Let’s break this down. Admiral shares currently cost around £34.62, so 100 shares would cost roughly £3,462. With a dividend yield of 4.8%, that would deliver around £166.27 of dividend income annually.
That’s not exactly life-changing money in the true sense — it’s more like a coffee budget or a modest utility payment.
Compare this with key competitor Legal & General, which offers a 7.77% yield. For the same £3,462 investment, you’d collect around £270 from Legal & General. That’s a notable difference.
| Stock | Yield | 100 shares income |
|---|---|---|
| Admiral Group | 4.80% | £166 |
| Legal & General | 7.77% | £270 |
Why Admiral stands out
But yield isn’t the only thing. Admiral has several strengths that make it pop.
- Diversified revenues: car insurance is the main business, but home, travel, pet, and personal loans add stability.
- Dividend growth: despite a decrease in 2022, dividends have been steadily growing at around 5.8% on average since 2010.
- Strong returns: 2025 return on equity (ROE) was 53%, and net income margin is 14.79%.
- Valuation: trading at 46.9% below fair value using a discounted cash flow (DCF) model.
- Future yield: forecasts expect the dividend yield to reach 6.3% by 2028.
In my view, those figures project the image of a company working hard to consistently reward shareholders as best possible. But that doesn’t make it risk free — it still faces notable challenges ahead.
Not only is insurance a highly cyclical sector, but competition is fierce. On top of that, the business is highly exposed to cracks in the UK economy, and market fluctuations can hit profitability.
So as always, try to spread risk by investing in several stocks from a diverse range of sectors. Insurance is a popular choice for income due to the high yields, but utilities, healthcare and consumer staples tend to deliver more stable, reliable returns.
The bottom line
Admiral Group is a good stock to consider as a starting point for dividend investing. But even 100 shares won’t deliver life-changing income. At around £166 a year, it’s a modest supplement, not a second salary.
For real income, you’d need to consider a range of stocks from different sectors and reinvest the dividends to compound for years.
Legal & General, Standard Life, and Aviva offer higher yields, but they carry different risks.
The proven method is patient, dedicated investing with regular monthly contributions. That’s how you build wealth over decades, not months. Admiral can be considered as part of that strategy, but it’s only one piece of a bigger puzzle.
Should you invest £5,000 in Admiral 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 Admiral Group Plc made the list?
Mark Hartley owns shares in Admiral Group, Legal & General, Standard Life and Aviva.
