This 10.6% yielder beats every dividend share on the FTSE 100. Can it last?

Just because a dividend share comes with a mind-bogglingly high yield doesn’t automatically make it a top income stock. Often, the reverse is true.

Many see an ultra-high yield as a warning signal. Especially when it hits double digits. But I’m betting that FTSE 100 insurer Phoenix Group Holdings (LSE: PHNX) is an exception.

I bought the stock both in January and March because I felt its dividends were probably sustainable. I can’t say that for sure, though.

Sky-high income

City analysts seem positive. Today, Phoenix has a trailing yield of a staggering 10.94%, but that’s just the start. It’s forecast to yield 11.2% in 2024, rising to 11.5% in 2025. One way of checking whether a yield is sustainable is by looking at recent dividend per share growth. Here’s what the charts say.

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In 2019, Phoenix increase its dividend per share by 1.74% to 46.8p. It then increased payouts in each…