Do you ever look at a FTSE 100 stock and think it really should be your top dividend candidate? I often do, and in this case, I keep coming back to M&G (LSE: MNG) and its forecast dividend yield of a whopping 9.7%.
That would be enough to turn a single year’s Stocks and Shares ISA allowance into £50,000 in 10 years. That’s by dividends alone, investing them in new shares. And not adding a single new penny to the pot for the whole decade.
It also ignores any possible share price gains we might enjoy too. Saying that, since M&G demerged from Prudential in 2019, the price is down 6%. Maybe it wasn’t the best time to come to market, just before the Covid pandemic devastated the financial sector.
Protect from risk
It still reminds us that we can’t be sure of any stock’s progress, and we really need some diversification to protect our money from an individual company or sector crash.
I must also stress that…
