I’m eyeing up some Stocks and Shares ISA investments over the winter, and my money will be mostly going into dividend shares.
My big problem is that there are so many attractive yields out there, it’s hard to choose.
If I had the cash ready today, a portion of it would almost certainly go into savings and investments manager M&G (LSE: MNG).
The M&G share price has been flat for the past few years, and that’s helped push the forecast dividend yield as high as 9.5%.
No free money
There’s no such thing as risk-free cash, and we can never guaranteed a dividend. Sometimes, the earnings just aren’t there to cover it… which is exactly what happened to M&G in the last two years.
It still kept up the payments, though. And forecasts show the dividends should be covered by earnings in the next few years. But only just.
If they’re right, earnings per share (EPS) should bounce back this year, but then stay…
