Financial stocks like Legal & General (LSE: LGEN), Aviva (LSE: AV.) and M&G (LSE: MNG) have been great sources of income in recent years. At times, they’ve been offering dividend yields of up to 10%.
Interested to know how much income could be on offer from these stocks in the years ahead? Let’s take a look at the latest dividend forecasts for these three FTSE 100 shares.
Legal & General
Starting with Legal & General, it’s forecast to pay out 21.7p per share in dividends for 2025 and 22.2p per share for 2026. At today’s share price of 256p, that puts the forecast yields at 8.5% and 8.7%.
Now, they’re obviously attractive yields and more than double what most high-interest savings accounts are paying these days. However, there’s no such thing as a free lunch in the investing world. So what are the risks here?
Well, one is turbulence in the financial markets. This could affect the value of assets the insurer has on its balance sheet and lead to operating losses (and potentially share price losses).
Another is less demand for pension risk transfer solutions. It’s worth noting that analysts at RBC just downgraded the stock to Underperform from Sector Perform and cut their price target to 220p on the back of concerns here.
Personally, I think the stock’s worth considering for income today. However, investors do need to acknowledge that there are some risks here and that share price weakness could offset any income received.
Aviva
Turning to Aviva, it’s forecast to pay out 38.1p per share for 2025 and 40.8p per share for 2026. At today’s share price of 636p, we have prospective yields of 6% and 6.4%. These yields aren’t as high as Legal & General’s, but they’re still attractive. The average forward-looking yield across the FTSE 100 right now is about 3.2%. So Aviva’s offering nearly double that.
The risks here are quite similar to Legal & General’s. In relation to pension risk transfer, the company actually advised recently that volumes this year are likely to be lower than in 2024. One other thing worth highlighting here is that the stock’s had a very strong run in 2025. Year to date, it’s up about 35%.
I think it’s still worth considering as an income play. But bear in mind that after that kind of run, it could be subject to some profit taking.
M&G
Finally, zooming in on M&G, analysts expect payouts of 20.6p and 21.1p per share here. Given that the share price is sitting at 259p, we have yields of 8% and 8.2%. I see this stock as a bit of an undiscovered income gem. It’s not nearly as popular as stocks like Legal & General and Aviva, but its yield’s excellent.
It also has a good track in terms of dividend growth. Since it was spun off from Prudential in 2019, it’s increased its dividend every year.
Again, turbulence in the financial markets is a risk factor here. It’s worth noting that this stock can be quite volatile at times. Yet I see quite a bit of appeal. In my view, it’s worth considering for income.
