The FTSE 100’s Biggest Dividends: Direct Line Insurance Group PLC, Admiral Group plc, Taylor Wimpey plc, SSE PLC And BP plc

Direct Line Insurance Group PLC (LON: DLG), Admiral Group plc (LON: ADM), Taylor Wimpey plc (LON: TW), SSE PLC (LON: SSE) and BP plc (LON: BP) are offering oodles of cash.

| 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.

Dividends can contribute massively to long-term investment returns, especially if they’re reinvested, and high-yielding shares have boosted many a portfolio. But which of the FTSE 100‘s stars are forecast to provide the biggest yields this year? It depends on who you ask and when, but here are the top five at the time of writing:

Direct Line

Direct Line (LSE: DLG), priced at 320p, is forecast to pay 32p per share this year, which would provide a massive yield of 10%. That’s not likely to be covered by earnings, but is part of Direct Line’s strategy of returning cash to shareholders through special dividends, so we shouldn’t bank on getting it very year.

5 Stocks For Trying To Build Wealth After 50

One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.

Click here to claim your free copy now!

But even without that, the insurer’s regular dividends are still expected to provide a 5.5% yield in 2016, so we’re looking at potentially lucrative income here.


Second place goes to Admiral (LSE: ADM) and its predicted yield of 6.1% on shares priced at 1,503p. That’s based on Admiral’s policy of offering a regular yield of around 3.5% and topping it up with special dividends, and with the total for 2015 likely to be barely covered by earnings, we shouldn’t expect such high yields as a given — though Admiral has kept them going so far.

Taylor Wimpey

Along with the rest of the housebuilding sector, Taylor Wimpey (LSE: TW) has been soaring, and is up 275% over the past five years to 149p — the FTSE 100 has managed an embarrassing 19% by comparison. But even after that growth, it’s also one of our best dividend payers too, with yields of 6.1% and 6.6% on the cards for the next two years. With more strong earnings growth forecast, and a P/E dropping to under nine on 2016 expectations, how can the shares not be cheap?


We need to get down to fourth place before we find a traditional safe income stock, and it’s energy supplier SSE (LSE: SSE) with its forecast yield of 5.9% for the year just about to end, on shares priced at 1,462p — and there’s 6.1% and 6.2% penciled in for the next two years. There will be some tentative fears that the dividend could be cut after Centrica did just that, but SSE is pretty certain to remain a steady long-term cash provider.


And then we come to BP (LSE: BP), whose shares are still down 34% to 419p over the past five years after the big crash following the Gulf of Mexico disaster. The oil price slump hasn’t helped either, and BP along with the other big players has been shelving some exploration plans and striving to cut costs.

But its dividend has come bouncing back and is set to yield 5.8% this year. That wouldn’t be covered by earnings, but an EPS rise forecast for 2016 should re-establish cover satisfactorily.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

This FTSE 100 stock is down over 30% in 12 months! Is now a good time to buy?

Jabran Khan delves deeper into this FTSE 100 stock that has seen its share price drop substantially in the past…

Read more »

A person holding onto a fan of twenty pound notes
Investing Articles

I’d buy this crashed FTSE 100 share for its near-7% dividend yield!

These five FTSE 100 shares have crashed, losing 18% to 25% of their value in one month. But I'd buy…

Read more »

Smiling senior white man talking through telephone while using laptop at desk.
Investing Articles

How I’d invest a Stocks and Shares ISA with a 10-year time frame

Our writer explains how he focusses his Stocks and Shares investment choices by using a long-term perspective.

Read more »

UK money in a Jar on a background
Investing Articles

3 reasons to consider the 7% Legal & General dividend yield

The Legal & General dividend yield of 7% is one reason our writer would consider buying the shares for his…

Read more »

macro shot of computer monitor with FTSE 100 stock market data in trading application
Investing Articles

Should I buy this FTSE 250 defensive stock?

Jabran Khan is looking for defensive stock options for his holdings and delves deeper into this FTSE 250 food manufacturing…

Read more »

pink toy piggy money box on yellow background
Investing Articles

5 ‘no-brainer’ FTSE 250 shares to buy today

I'm seeing a lot of attractive dividend shares in the FTSE 250 right now. This approach gives me some very…

Read more »

Windmills for electric power production.
Investing Articles

The SSE share price slumps by 11%! Should I buy today?

The SSE share price tumbled today after talks of a windfall tax on electricity generators. Our writer considers if it’s…

Read more »

British Pennies on a Pound Note
Investing Articles

3 penny shares I own instead of Woodbois

Our writer prefers these three penny shares over hot stock Woodbois -- which is why he has bought them.

Read more »