Today I am looking at three FTSE 100 that income seekers simply have to check out!
Business is booming
As product sales surge across the globe, I reckon Aviva (LSE: AV) is a top-drawer selection for those seeking extraordinary dividends in the years ahead.
Aviva saw the value of new business surge 24% in 2015, to £1.19bn, the company chalking up twelve successive quarters of growth in the period. And Aviva is steadily ramping up its position in hot areas to keep the top line moving — indeed, the business bumped up its stake in Aviva India to 49% just last month.
On top of this, dividend chasers should a be buoyed by Aviva’s ability to generate lots and lots of cash, the firm’s ‘Solvency II’ capital generation clocking in at around £2.7bn last year. And the acquisition of Friends Life is expected to provide a further capital boost in the years to come.
Against this backcloth the City expects Aviva to dole out dividends of 23.7p and 26.8p per share for 2016 and 2017, resulting in huge yields of 5.2% and 5.9%. And I expect these readings to keep rising as earnings take off.
Power up your portfolio
For those seeking reliable dividend expansion, I believe it is difficult to look past power network provider National Grid (LSE: NG).
Electricity is one of those commodities that we simply cannot live without, meaning that National Grid carries the kind of earnings stability enjoyed by very few others. And while suppliers SSE and Centrica are fighting a losing battle against smaller, independent operators, National Grid of course does not face the same competitive pressures.
Furthermore, National Grid is also reaping the fruits of RIIO price controls in the UK, measures that are helping to strip out unnecessary capital seepage.
Given these factors, the City expects National Grid to raise the dividend to 44.5p per share in 2016, yielding a chunky 4.4%. And the yield increases to 4.5% for 2017 due to predictions of a 45.7p payout.
At face value ARM Holdings (LSE: ARM) may appear a barmy selection for dividend chasers.
The capital-intensive nature of tech development means that dividend yields at ARM Holdings have long lagged the big-cap competition. And the numbers crunchers do not expect this phenomenon to cease any time soon.
Indeed, the chip designer is predicted to pay a dividend of 10.2p per share for 2016, yielding 1%. By comparison, the FTSE 100 forward average stands at around 3.5%.
And for 2017, ARM Holdings’ estimated payment of 12.3p yields just 1.2%.
Still, for those seeking electric dividend growth year after year, I believe it is difficult to look past the Cambridge tech titan. ARM Holdings hiked the final dividend by 25% last year, and broker projections suggest that rewards should keep rising at an astronomical rate.
And this comes as little surprise as the company’s diversification into new tech areas like networks and servers pays off. I reckon ARM Holdings is a terrific stock bet for BOTH income and growth seekers.
Royston Wild has no position in any shares mentioned. The Motley Fool UK has recommended ARM Holdings and Centrica. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.