The FTSE 100 is up more than 12% over the last year but is still packed with great-value income stocks, many of which offer ultra-high dividend yields.
Two blue-chips yield more than 9% a year, smashing the return on cash or bonds. While dividends are never guaranteed, I think they may prove sustainable. I own both stocks and I’m keen to buy more before they go ex-dividend on 26 September.
Insurance conglomerate Phoenix Group Holdings (LSE: PHNX) offers one of the highest trailing yields on the entire index at 9.36%. It also has a pretty good track record of increasing shareholder payouts, year after year, as this table shows.
Chart by TradingView
Is the Phoenix dividend sustainable?
To fund this shareholder largesse, a company needs to generate heaps of cash. Happily, Phoenix has been doing well on this front, beating its own targets to hit £2bn last year.
The share price will never fly but it did climb 4.34%…
