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Investing for passive income is my preferred means of building wealth over time. The FTSE 100 is jam packed with businesses that offer a dividend yield north of 5%, but there’s one standout stock that really excites me today.
Growing dividends
In its H1 results back in August, insurance giant Aviva (LSE: AV.) lifted its interim dividend by 7% to 11.9p per share (DPS). The total payout in 2024 is predicted to be 35.5p, which represents a 6.1% increase on 2023.
Last year, it paid out a total of £906m in dividends and continues to guide for mid-single-digit growth in the cash cost of dividends. It’s little wonder that analysts have pencilled in the dividend rising to 40.9p by 2026. That puts it on a forward yield of a meaty 8.5%.
On top of that it bought back £300m of its own shares earlier in the year.
Structural growth opportunities
Supporting future shareholder returns…
