Aha, sceptics will say, but a sky-high yield often signals trouble. That’s true. Vodafone‘s a classic example. At times the telecoms giant yielded more than 10%, but that didn’t last. In 2019, payouts were slashed by 40%, and this year they were halved again. Today, the yield’s a more modest 4.3%, though at least the shares are finally rising.

Still, high yields can also be genuine opportunities. As ever, it all depends on the stock in question.

Financials doing the heavy lifting

I hold three of the FTSE 100’s top four yielders in my Self-Invested Personal Pension (SIPP): Legal & General Group, Phoenix Group Holdings and M&G (LSE: MNG). All yield more than 7.7%, with Legal & General offering a huge 8.8%.

I also own housebuilder Taylor Wimpey, which yields 8.6% and was in the FTSE 100 until recently. Today, it resides in the FTSE 250. These are incredible rates of income, miles above today’s FTSE 100 average yield of 3.15%.

They’re a bit too concentrated in financial services, but I love it when those big fat dividends hit my SIPP. I’ve studied the company accounts and the boards look determined to maintain payouts. There are no guarantees. Taylor Wimpey trimmed its dividend by 1.25% in 2024, while the rest plan modest increases of around 2% going forward.

Not every super yielder tempts. WPP has a headline 10.8% yield, but don’t be fooled. The FTSE 100 media and advertising giant’s shares are in freefall, and the dividend will be cut by 50% in November.

M&G’s my favourite

Of the bunch, M&G’s my pick. It’s given me share price growth as well as income. The stock’s up 27% in the last year and 50% over five years. With reinvested dividends, investors would have more than doubled their money.

Over the past five years, its dividend growth averages a modest 2.4% a year, but the high yield makes up for it. The group’s Solvency II coverage ratio stood at 230% in the first half of 2025, even after funding the May payout. While operating capital generation dipped to £408m from £486m year-on-year, it grew on an underlying basis. The dividend looks solid, but no guarantees.

M&G’s forward price-to-earnings ratio of 10.5 suggests it’s fairly priced, and analysts expect the yield to hold above 8% in 2026. There are risks. A stock market crash could hammer assets under management and fund inflows, while as an active manager M&G faces a constant threat from the popularity of low-cost, passive ETFs.

However, I’d still say it’s well worth income-focused investors considering today. I’d say the same for Phoenix and Taylor Wimpey – I think the housebuilder is a brilliant potential recovery play, for when interest rates fall and the economy and housing market pick up. Legal & General’s underwhelming, but I’ll give it time.

Where else can I get this level of passive income? That’s the beauty of FTSE 100 dividend stocks, and why I think they’re a golden opportunity today.

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