The Motley Fool

FTSE 100 Dividends Reach New All-Time High

One of the most popular funds tracking the FTSE 100 (FTSEINDICES: ^FTSE), the iShares FTSE 100 (LSE: ISF) exchange-traded fund (ETF), today confirmed dividends from the blue-chip index had reached a fresh all-time high.

News this morning of a forthcoming 5.25p per share payout from the iShares FTSE 100 now means the ETF has declared dividends of 22.4p per share during the last twelve months — up 20% on the preceding twelve months.

The annual dividend from the FTSE 100 ETF is now 4% greater than the pre-banking crash peak of 21.56p per share, which was declared during the twelve months to February 2009.

The ETF’s latest payout underlined how dividends from Britain’s 100 largest companies have continued to advance following the widespread cuts seen during the financial crisis:

12 months to August iShares FTSE 100 dividend (p per share)
2007 17.37
2008 20.12
2009 18.17
2010 16.40
2011 17.39
2012 18.62
2013 22.40


Recent dividends from the iShares FTSE 100 may have been bolstered by good results from major blue-chip shares. Indeed, members of the FTSE 100 raising their payouts of late include ITV, with a 38% advance, ARM, with a 26% advance, and Intertek, with a 15% advance.

The possibility of even greater returns

While index trackers such as the iShares FTSE 100 are a great way of capturing the long-term collective power of British companies and the stock market, there are always individual shares that have better dividend records — and could deliver better returns — than the wider index.

Right now, the iShares FTSE 100 trades at around 653p and therefore presents today’s buyers with a 3.4% yield — a reasonable if not spectacular income.

But you can capture higher yields and possibly faster growth by alighting on the large-caps spotlighted in this this exclusive dividend wealth report

You see, the report reviews a number of particularly attractive buying possibilities within the FTSE 100, with each opportunity offering a rich mix of defensive prospects, reliable growth and dependable dividends.

Just click here for this dividend report — it’s free.

> Maynard does not own any share mentioned in this article.