For me, Aviva (LSE: AV) shares will all the time be those that received away. When loading up my self-invested private pension (SIPP) final 12 months, I purchased nearly each high-yielding, dirt-cheap FTSE 100 monetary inventory I might discover.

I didn’t purchase Aviva, which went onto outperform the lot. Whereas its shares have idled in current months, they’re nonetheless up 10% over one 12 months and 20% over 5. That isn’t precisely Nvidia territory, however high UK blue-chips like Aviva have a unique function to play in a balanced portfolio.

As a substitute of quick-fire development, they provide the prospect of strong long-term returns, in intervals measured over years and even a long time. That doesn’t simply come from a rising share price, however the regular stream of dividends they pay buyers.

Can this high blue-chip give me development too?

FTSE 100 shares pay a few of the most engaging dividend yields on this planet. At present, shares on the index pay common revenue of three.6% a 12 months. That compares to a meagre 1% on the growth-friendly S&P 500. These dividends shut the distinction between the 2 over time (though not completely, sadly).

Aviva has a bumper trailing yield of seven.31%. It additionally has a strong observe file of accelerating shareholder payouts, 12 months after 12 months. It’s not good although, having suspended the dividend in the course of the pandemic. It’s recovered since, as this chart exhibits.

Chart by TradingView

Aviva CEO Amanda Blanc is aiming to extend shareholder payouts yearly, focusing on “mid-single-digit growth”. The forecast yield for 2025 is an much more tempting 7.82%. Blanc has additionally promised “further regular and sustainable returns of capital”, most likely through share buybacks.

If an investor put £10,000 into the inventory right now, they might probably get revenue of £782 this 12 months. Any share price development could be on high.

The 12 analysts providing one-year share price forecasts have produced a median goal of simply over 550p. If that pans out, it might mark a rise of greater than 16% from right now’s 472p. Mixed with that yield, this may give buyers a complete return of round 24%. Time will inform.

This FTSE 100 inventory has loads of money

Aviva has a wholesome steadiness sheet and generates loads of money, however as with every inventory, there are dangers. First, it seems like rates of interest are going to remain increased for longer. That’s unhealthy information for revenue shares like Aviva, as a result of it provides buyers a good return from money and bonds, with no danger to their capital.

Larger rates of interest may also squeeze inventory markets typically, hitting the worth of its £376bn of property beneath administration.

Aviva can also be beneath stress to make a hit of its £3.6bn takeover of Direct Line. Whereas it stands to make potential financial savings, the anticipated £125m of capital synergies will solely arrive if the board will get its technique proper.

Eight out of the 14 analysts following Aviva identify it a Sturdy Purchase. None suggest promoting. Sadly, I’ve already made my selection. Having purchased rivals Authorized & Normal Group, M&G, and Phoenix Group Holdings, one other insurer could be overload.

All three FTSE 100 shares have even increased yields than Aviva. Now I simply hope they will match its share price efficiency.