None of these yields is the very best within the FTSE 100. The common throughout all the businesses within the index is anticipated to attain 3.7pc this yr, based mostly on 2021’s dividends. Shares in 9 corporations are buying and selling at a yield of greater than 7pc.

However, specialists have cautioned {that a} excessive yield can usually be an indication that the inventory market 

doesn’t anticipate the payout to be sustained and believes a dividend minimize to be on the horizon.

“Forecasts of yields in the region of 10pc may make investors a little wary, given the shocking record of firms previously expected to generate such bumper returns,” Mr Mould stated.

Nick Train of fund group Lindsell Train highlighted shopper items large Unilever, which is denied “dividend aristocrat” standing solely by foreign money fluctuations. The firm has grown its dividend for greater than 50 years, however its payouts, declared in euros since 2000, fell in sterling phrases in 2014 and 2015.

Mr Train stated this document was mirrored within the efficiency of the corporate’s shares, which, excluding dividends, had risen 16-fold since 1988. “It is testament to the sort of returns that successful, steadily compounding companies can deliver for you,” he stated.

Ken Wotton of the funding supervisor Gresham House pointed to Alternative Investment Market firm Bioventix. The analysis and growth agency listed on the inventory market in 2014 and has grown its dividend yearly since. The shares have risen greater than 11-fold over that interval.

Mr Wotton stated corporations that had been in a position to persistently develop their dividends represented compelling investments.

“They are profitable, and that fundamentally underpins investor returns,” he stated. “It’s a sign of a grown-up, financially disciplined company if it pays a dividend. It indicates the management has a focus on shareholder value.”

Mr Wotton stated the corporate’s dividends alone, even with out that share worth rise, had paid again his preliminary funding.

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