3 Of The Biggest Dividends In The FTSE 100: Resolution Limited, Vodafone Group plc And Admiral Group plc

The recent market correction has pushed the dividend yields even higher at Resolution Limited (LON:RSL), Admiral Group plc (LON:ADM) and Vodafone Group plc (LON:VOD).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.


Resolution (LSE: RSL) has been one of the highest-yielding shares in the FTSE 100 for some time. Anyone buying at the end of 2012, when the shares were trading at 248p, got an 8.5% yield. So far this year, the shares have advanced 13.2%. Even though the dividend is expected to rise, the increased share price has pushed the prospective yield down to ‘just’ 7.8%.

Sound too good to be true? Unfortunately, while the dividend at Resolution represents a massive yield, earnings cover looks perilously thin. This means that any slip in trading and the dividend could be cut. However, strong earnings growth is expected for 2014, with just a modest uptick in the dividend. This should help secure the payout into the future.


A special dividend paid in 2012 saw Vodafone (LSE: VOD) (NASDAQ: VOD.US) overtake Shell as the FTSE 100’s biggest cash payer. That special dividend came from the contribution made by Vodafone’s US operations. While the special payout won’t be repeated this year, Vodafone has been buying back its own shares in the market. This should help the telecoms giant to grow per share dividends in the future.

Vodafone paid 10.2p of dividends last year. The consensus analyst expectation is that this will reach 10.6p this year, before edging up to 10.8p the year after. On today’s share price, that means Vodafone offers a yield of 5.6%, rising to 5.7% next year.

Earnings per share (EPS) is expected to edge ahead also, making dividends around two third of expected profits.

Admiral Group

Last year, Admiral Group (LSE: ADM) paid a total of 90.6p in dividends. Like any insurer, the company does not have great visibility over short-term earnings. Admiral has previously declared a portion of previous dividends to be ‘special’. This gives the company room to cut or increase the total payout depending on trading conditions. The 2012 payment was split between 42.7p of normal dividends and 47.9p special.

According to the consensus of broker forecasts, Admiral is expected to payout a total of 91.8p in dividends for 2013. If this payment comes through, the yield on the shares today is an hefty 7.0%.

Even if 2013 is a particularly bad year for Admiral, shareholders could still expect to receive a dividend payout over 3%.

Although each of these shares promises an impressive yield, our team of analysts think that there is a better income stock available in the FTSE 100 today. To find out which dividend stock they consider to be the best available, get your copy of their research in the Motley Fool report “The Motley Fool’s Top Income Share For 2013”. This research is 100% free and will be delivered to your inbox today. Just click here to get your copy.

> David does not own shares in any of the above companies. The Motley Fool has recommended shares in Vodafone.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

At a record high, there can still be bargain FTSE 100 shares to buy!

The FTSE 100 closed at a new all-time high this week. Our writer explains why there might still be bargain…

Read more »

Asian man looking concerned while studying paperwork at his desk in an office
Investing Articles

After profits plunge 28%, should investors consider buying Lloyds shares?

Lloyds has seen its shares wobble following the release of its latest results. But is this a chance for investors…

Read more »

Abstract bull climbing indicators on stock chart
Investing Articles

Something’s changed in a good way for Reckitt in Q1, and the share price may be about to take off

With the Reckitt share price near 4,475p, is this a no-brainer stock? This long-time Fool takes a closer look at…

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

This new boost in assets might just get the abrdn share price moving again

The abrdn share price has lost half its value in the past five years. But with investor confidence returning, are…

Read more »

Young Black man sat in front of laptop while wearing headphones
Investing Articles

As revenues rise 8%, is the Croda International share price set to bounce back?

The latest update from Croda International indicates that sales are starting to recover from the end of 2023, so is…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

Q1 results boost the Bunzl share price: investors should consider the stock for stability

As the Bunzl share price edges higher, our writer considers whether this so-called boring FTSE 100 stock looks like a…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

The top 5 investment trusts to buy in a resurgent UK stock market?

These were the five most popular investment trusts at Hargreaves Lansdown in April. And they're not the ones I'd have…

Read more »

woman sitting in wheelchair at the table and looking at computer monitor while talking on mobile phone and drinking coffee at home
Investing Articles

The smartest dividend stocks to consider buying with £500 right now

In the past few years, the UK stock market’s been a great place to find dividend stocks paying top yields.…

Read more »