The FTSE 100 is an absolute treasure trove for passive revenue seekers proper now. It’s filled with high dividend shares, significantly within the monetary companies sector.

Considered one of my faves is wealth administration and funding agency M&G (LSE: MNG). Regardless of its share price dropping 10% in 2024, it stays a dividend powerhouse. With a trailing yield of a scarcely plausible 9.9%, this inventory continues to be a dream for income-focused traders like me.

M&G has carved out a distinct segment as a diversified funding supervisor, investing throughout equities, fastened revenue, different investments and actual property. This diversification reduces threat and permits M&G to climate altering market situations.

The share price hasn’t lived up to the revenue

Like all asset supervisor, it’s proper on the entrance line of any market downturn. Its share price efficiency has been lower than stellar for some. It’s really down 18.15% over the past 5 years, whereas the FTSE 100 as a complete rose greater than 8%.

These have been difficult instances, with the pandemic, vitality shock and cost-of-living disaster. However that hasn’t stopped US shares from hovering, particularly within the final couple of years. Throughout this era, M&G lagged. As a worldwide operator, it’s additionally uncovered to the UK, European and rising markets, which have trailed the US badly. They give the impression of being cheaper consequently although, and could possibly be due a restoration.

M&G’s failure to fly throughout the US upswing raises considerations about the way it will fare if this 12 months is hard. What it wants most is a collection of rate of interest cuts, however with solely a pair anticipated this 12 months, 2025 might show bumpy too.

But I stay an enormous fan. Why? The board has a steadfast dedication to returning money to shareholders, steadily rising dividend funds over time. The yield is forecast to hit 10.4% this 12 months, supported by sturdy money flows, a strong steadiness sheet and prudent monetary administration. Whereas dividend per share development has slowed, it’s arduous to complain.

For this reason I purchase FTSE 100 shares

Final 12 months’s price drop alerts a chance for long-term traders like me. Trading at 15.71 instances earnings, M&G shares are fairly valued, in step with the FTSE 100 common. Whereas not precisely filth low cost, they’re properly priced for these targeted on revenue. I’d add extra to my portfolio if I didn’t already maintain a big stake.

M&G can also be making strategic strikes to develop its consumer base and improve digital capabilities, focusing on development in an more and more aggressive market. However for me, the first enchantment lies within the revenue. By reinvesting dividends, I’m compounding my returns, producing much more revenue over time.

Market volatility and regulatory pressures stay a problem. Nonetheless, I’m prepared to climate the uncertainty. Development will come, given time. No less than I hope so. I’m having fun with a wonderful second revenue whereas I wait.

Investing in M&G isn’t nearly chasing share price positive aspects. It’s about constructing a dependable revenue stream. For affected person traders like me, it affords a mix of excessive yield and stability, even in unsure instances. I ought to get my subsequent dividend fee on 8 Could. I’ve already circled the date on my calendar.