I ponder if 2 April will go down in investing folklore? It’s the day President Trump revealed his sweeping import tariffs. And it kicked off a share price rout the next day that made a variety of our favorite dividend shares look much more tempting.

I say rout, as that’s what the headlines recommend. The FTSE 100 is down 115 factors on the time of writing, about 1.3%. And it’s nonetheless up 7% over 12 months.

10% dividend yield

Some massive dividend shares fell more durable, with Phoenix Group Holdings (LSE: PHNX) dropping 4.9% as I write. However that helped push the forecast dividend yield, beforehand at 9.5%, to 10%.

Phoenix acquires and manages closed life assurance and pension funds. And it operates principally within the UK. I don’t see how US import duties are prone to have an effect on that enterprise or the flexibility to pay dividends.

Nonetheless, something that shakes the inventory market tends to impression the monetary sector. Banks and insurance coverage shares throughout the board have misplaced floor.

Something new?

Buyers pondering of shopping for Phoenix Group shares face danger. In spite of everything, no potential 10% return goes to be near risk-free.

The most important hazard is likely to be that the corporate actually must maintain discovering new closed companies to accumulate and handle if it’s to develop. Or alternatively, perhaps it may transfer into still-active companies. The weak five-year share price efficiency exhibits buyers have considerations.

Nonetheless Phoenix strikes ahead, CEO Andy Briggs was nonetheless assured at FY 2024 outcomes time in March. He spoke of development momentum, money technology, and “sustaining our progressive dividend for shareholders“.

I actually don’t see how something has modified.

Massive faller

Mondi (LSE: MNDI) was one other of the FTSE 100’s greatest fallers on the day after tariff day. As I write, it’s down 6.7%. However once more that boosted the forecast dividend, this time from 5.0% to five.3%.

Not less than with Mondi, its enterprise is in a roundabout way associated to import and export. Not less than, it makes paper and packaging merchandise. And if worldwide commerce falls, perhaps it’ll promote much less.

The share price has had a tricky few years too, now down near a 10-year low.

Bullish analysts

In opposition to the negatives, dealer forecasts are upbeat. We’re a forecast price-to-earnings ratio of round 10 over the subsequent few years, which appears modest for a 5.3% dividend. Debt is predicted to rise sharply in 2025, which is a fear. However that’s anticipated to be the height, adopted by a decline.

The Metropolis people nonetheless see the dividend rising progressively after 2025. That, nonetheless, is after a slight dip on the playing cards for the present yr.

Nonetheless, regardless of the market’s obvious bearish tackle the packaging enterprise, at FY time in February CEO Andrew King stated “we’re at the moment seeing enhancing order books throughout our packaging companies and are implementing price will increase throughout our vary of packaging paper grades“.

For anybody contemplating both of those two shares (which incorporates me), I actually don’t assume a lot has modified. Besides they’re cheaper now.