The FTSE 100 index has been delivering sturdy returns for many years now. For the reason that mid-Nineteen Eighties, the Footsie has delivered a mean annual return of 8%. This contains of roughly 4% in capital positive aspects, and one other 4% in dividend earnings.

That is fairly good. However I’m assured that I could make an even-better return by shopping for high-dividend shares. Listed below are three on my radar at this time.

WPP

Ahead dividend yield 5%.

Promoting company WPP (LSE:WPP) hasn’t had a straightforward time of late. Weak advertising spending, and notably within the North American tech sector, has hampered its skill to develop revenues.

Gross sales dropped 1.4% within the first quarter. The highest line might keep below stress too, if rates of interest stay at present ranges.

However my enthusiasm for WPP shares stays undimmed. The enterprise, which gives communications and promoting providers in 100 international locations, has huge scale and tight relationships with blue-chip firms throughout a number of sectors.

I believe it can bounce again sharply when financial situations enhance, helped by its pivot to the fast-growing digital advert market.

Phoenix Group Holdings

Ahead dividend yield 11.1%.

The dividend yield at Phoenix Group Holdings (LSE:PHNX) could also be arduous to imagine. However the pensions, life insurance coverage and financial savings big has an extended document of offering giant and rising shareholder payouts.

That is thanks largely to its skill to create spectacular quantities of money. The FTSE 100 agency generated a whopping £2bn value of money in 2023, up £500m and above its goal of £1.8bn. It additionally hit its goal of producing £1.5bn of recent enterprise money a full two years forward of plan.

And as of December, its Solvency II capital ratio was 176%. This was on the prime finish of the agency’s 140-180% goal, and gives present dividend projections with added power.

A phrase of warning although. Phoenix’s earnings might come below pressure if rates of interest stay at present ranges. On this situation, shopper spending might battle, whereas asset values would even be adversely impacted.

Aviva

Ahead dividend yield 7.6%.

Like Phoenix Group, Aviva (LSE:AV.) has important scope to develop as Britain’s aged inhabitants soars in measurement. The corporate — which additionally has operations in Canada — gives life insurance coverage, pensions, well being safety and wealth administration, giving it a number of methods to use ongoing demographic adjustments.

Competitors within the monetary providers sector’s fierce. And the corporate has to paddle extraordinarily arduous to develop earnings. However its market-leading place throughout a number of product traces signifies it has the instruments and the knowhow to succeed.

Aviva is, as an example, the main life insurance coverage supplier within the UK, the place it holds practically 1 / 4 of the market.

An formidable strategy to digitalise its operations might additionally assist Aviva to outperform its friends over the long run. Latest steps embrace utilizing synthetic intelligence (AI) to assist it course of claims, and overhauling its digital platforms to spice up cross-selling prospects.